A colocation data center, or “colo,” is a rental service that allows enterprise customers to store their servers and other hardware necessary for their daily operations. The operation and maintenance of the colocation data center is a shared responsibility between the data center provider and the customer.

Colocation data centers offer enterprise customers a cost-effective way to access the digital infrastructure needed to operate and store critical data, without investing capital in maintaining buildings, managing network facilities, power generation, and other essential services.

In this way, big enterprises can solely focus on their core operations, while colocation data solution providers already take care of all the data center infrastructure necessities.

Operations in a Colocation Data Center

Initially, certain companies owning ample space built a physical data center facility (can be multi-storeyed or span over several square feet) designed and equipped with networking hardware and advanced software, automated computing facilities capable of handling enormous workloads, data traffic, and data recovery (DR) systems. This makes colocation data centers an ideal partner for data delegation.

Types of Colocation Data Centers

There are mainly three types of colocation facilities: 

Wholesale Colocation 

As the name suggests, a wholesale colocation allows customers to lease large dedicated portions of data space compared to retail colocation. It is best suited for large companies spanning several locations, having massive computing needs, and facing difficulty investing time and money in building a well-managed facility. Generally, companies opt for a wholesale colocation to access a prefabricated and cost-effective data center that provides the latest and most efficient data management system for bulk requirements.

Retail Colocation 

A retail colocation runs on a comparatively smaller scale, allowing companies to lease a small portion of the rack in accordance with the requirement. It is most suitable for micro-enterprises and businesses with limited data storage needs, and instead of developing their own data center, renting a space in a specialized facility is a better alternative for them.

Hybrid Cloud-based Colocation

A hybrid cloud-based center is a mixture of private and public cloud services. Hybrid colocation provides customers access to a private cloud service while building other operations within its own on-premises infrastructure. 

Moreover, Hybrid colocation is flexible and establishes a space between wholesale and retail colocation. It is an innovative combination of solutions for new-age companies and businesses that want a middle path for their critical data operation requirements.

Key features of Colocation Data Centers

Some of the important features of a colocation data centers are given below:

Multi-layered Network or MLN 

Colocation centers deploy multi-layered network systems to help them deal with the complexity of neural networks. It consists of several nodes and edges that represent distinct network connections. It is used to characterize multiple layers of interactions that are impossible in traditional monolayered network systems. MLN is flexible and helps colocation providers optimize their resources.

Cooling Systems

Cooling is a crucial component of any data center. Large units working 24*7 generates a lot of heat, which can be detrimental for the units. Cooling systems help maintain an optimal temperature (typically between 18 degrees Celsius and 27 degrees Celsius) to enable efficient working of the data center. Colocation centers adopt various cooling strategies, such as evaporative cooling(swamp cooling) or air cooling, to maintain this optimal level. Colocation data centers are beneficial since they have experts behind the structure to guide and oversee the proper working of the cooling systems. 

Redundancy 

Colocation data centers strive to maintain uninterrupted operations for their customers, and having a backup system for downtime caused by a single failure such as power, cooling, and network connection plays a vital role.

Redundancy is maintaining and optimizing systems to be resilient to single-source or multiple-source failure, creating hindrances to retrieving data. 

As a result, colocation centers provide UPS (uninterrupted power systems) that are best equipped and function under trained professionals and on-site technicians who help them create the best experience for their customers.

Flexible Scalability 

Colocation data centers are flexible; this is the reason they accommodate their tenant’s requirements on demand. This elasticity is beneficial for enterprises with changing needs. This feature creates a comfortable tenant environment and helps build trusted and reliable relationships.

Smart Monitoring and Control 

Colocation data centers are well-furnished with automated control and management systems, making the best use of artificial intelligence, software automation, and machine learning to track the real-time health of the data units. Using sensors helps them mitigate any sudden failures beforehand in most instances. 

Pros and Cons: A Detailed Analysis 

Let us look at some of the Pros and Cons in using a colocation data center.

Pros 

Leasing space is less expensive than investing in building the whole structure equipped with the latest technology, modern networking equipment, ample rack space, and skilled manpower.

Leasing a colocation data center allows companies to stay free from strict adherence and compliance norms as the colocation centers already take care of them.

The colocation center has 24*7 technicians on-site to ensure the proper working of the units; they continuously enhance the system via R&D against potential risks and cyber threats.

The scalability of colocation data centers is flexible, so there is no need to actively analyze future requirements and expand accordingly. Companies can rent a small unit, such as a few racks or a caged-off room, and they can also rent massive facilities ranging from several units or stories of the building as per their requirements at any instance.

They have backup resources and physical security strategies to withstand natural disasters, power outages, or any other computing or network failures.

Colocation data centers have their own pricing index models, allowing them to charge according to the services available to the tenants. 

Cons 

Colocation centers should be well-inspected before acquiring any rental service since many of them leeway unexpected charges. Tenants have to be vigilant with their critical data and should be aware of the workings of the data center to avoid any security breach and unauthorized access.

There might be a risk of fraudulent activities concerning service level agreement (SLAs) policies. There should be great emphasis on guaranteed uptime and beforehand agreement on which tier of guarantee they intend to provide (there are generally 4 tiers). 

The trained professionals might not be skilled or available on-site to track the working of the data center. Some colocation centers adopt illegal or unauthorized activity under the book to avoid government intervention, which may be detrimental to the tenants. 

Top Colocation Data Center Providers

Here are some of the largest colocation data center providers: 

Conclusion 

Colocation data centers are fast-evolving service infrastructures that provide access to the most advanced and safest ecosystem via cross-connections and interconnections of networks on the premises.

Moreover, most good colocation data centers focus on strict adherence to the IBX certification and compliance with standards. According to the third IDC MarketScape assessment report, the global data center is witnessing continuous steady growth by strong demand from enterprises.

Furthermore, public cloud facilities are preferred for tech companies to store critical data because of the flexible consumption-based pricing system adopted by the data center colocation providers. The development of colocation data centers is experiencing exponential growth, which is a testament to their outstanding performance in the global market.

Connect With The Experts 

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Discover the Global Project Tracking (GPT) platform by Blackridge Research, designed to provide you with the most recent Global Colocation Data Center Facility Projects better and faster across various stages of development :

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Book a free demo to learn more about the Global Colocation Data Center Facility Projects database and how we can help you achieve your goals.