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Data center colocation allows you to enjoy the benefits of having a dedicated server at a fraction of the cost. You rent a space in a third-party colocation data center and store your servers and other computing hardware on their racks. The colocation service providers take care of the rest. They offer network support, redundant power supply and cooling facility, and security. If you opt for managed colocation services, the colo provider will also help you with the maintenance of the server. However, to make the most out of it, you need to know what to look for in a colocation data center to pick up the best-suited colo provider for your business. 

colocation data center

The Colocation Market

Colocation hosting has become more popular over the few years, especially during the pandemic, due to the several advantages it offers. A recent research study by Custom Market Insights estimates the global data center colocation market size to reach USD 131.8 Billion by 2030.   

Seeing this huge potential, more and more players are entering the market. According to the most recent estimates, the United States has over 2,000 colocation data centers. With so many choices at hand, it can be challenging for businesses to select the most suitable colocation facility for their IT needs.

What to Look For in a Colocation Data Center?  

Here we discuss the 3 most important things you should consider when choosing a colocation service provider. 


Location is one of the primary considerations when it comes to the colocation data center. It should be close enough to your business so your IT staff can easily make a trip to the data center as and when needed.

Try to avoid locations prone to natural disasters such as hurricanes, floods, earthquakes, etc. Also, consider a colocation data center nearest to your workload to ensure minimum latency.  

To learn more about why the physical location of a colocation facility is important, read our blog on the importance of the physical location of a colocation facility


The reliability of a data center is determined by the amount of uptime guaranteed by the colocation service provider. It depends on the redundancy level of a data center. 

The Uptime Institute has devised a standardized method to measure a data center’s reliability and potential infrastructure performance. In this method, colocation facilities are classified into different tiers. However, this tier certification is not a legal requirement, so a colocation provider may not have official documentation. 

Still, before finalizing your choice, discuss the reliability tier of the colocation center to find out if it suits your requirement.     


Security is another important consideration when selecting a colocation hosting service. It includes both physical and online security. Ensure the colo provider employs a state-of-art security system and that your colo servers are absolutely safe in their facility. Also, enquire about whether they offer 24/7 human network monitoring. It ensures fewer outages, enhanced security, and reliable communication.      

Other Considerations

In addition to the above points, the other things that you should look for are the network connectivity ecosystem of the colocation data center, its scalability, cost, and ease of deployment. 

Coloco offers colocation services in Washington DC, and the Baltimore area at an affordable cost. Visit Coloco to learn more about the different plans we offer.