14 Reasons Why Colocation Is Good for your Business

The colocation data center market generated approximately 50.58 billion dollars in revenue globally in 2021. Additionally, business revenues are predicted to reach over 136 billion dollars by 2028.

This surge in the popularity of colocation solutions is guided by the demand of businesses to upkeep their IT infrastructure at cost-effective prices. From networking facilities to temperature control systems, colocation cuts down on substantial capital expenditures as well as continuous operating costs.

Read on to explore the top 14 business benefits of colocation hosting!

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What is Colocation?

A data center or telecommunications facility that offers space for rent to businesses for servers, storage units, and other networking and computing equipment is known as a colocation facility (colo).

In most cases, a customer supplies servers, storage, and network devices, while a colo offers the building, air conditioning, electrical power, telephone and data network capacity, internet access, and security measures. It can guarantee that the organizational requirements of the customer are met by supporting all or a portion of an IT infrastructure.

Top 14 Colocation Benefits for Business

Wondering why choose colocation for business?

Companies of all sizes gain from colocation. For instance, small enterprises can have access to the functionalities of an extensive IT department. Businesses of medium to larger sizes can increase their data storage ability without investing in expensive building projects or property leasing.

Below are some of the business benefits of colocation hosting:

1. Cost-Effective Approach

For many companies, the cost of maintaining hardware and IT systems can be exorbitant. If you intend to expand quickly, you'll require a versatile colocation strategy that relieves you of the expense of having to store pricey equipment.

Hence, instead of choosing to operate an internal data center or having all of your IT infrastructure hosted in the cloud, a colocation provider can offer you the required capacity at a fraction of the cost.

Colocation can lower business expenses by handling the following:

  • Strengthening cooling area
  • Control of humidity
  • Physical safety
  • Continuous upkeep

2. Maximizes Performance

Electronic devices can be fickle. It functions most effectively in a clean, temperature-controlled setting. Expert data centers offer superior cooling and air-purification mechanisms that are even as beneficial as offices can offer.

Because colocation provides redundant cooling systems, sections are thermally controlled to guarantee proper airflow and temperature maintenance.

3. Reduced Downtime

Colocation helps minimize downtime by using redundancies, such as numerous power feeds, emergency generators, redundant cooling and energy systems, and access to numerous concurrent carriers.

These precautions guarantee adaptability against interruptions, particularly since colocation facilities are frequently outfitted to withstand a range of natural calamities. Colocation providers back up the dependability pledge with a service level agreement (SLA) that guarantees consistent uptime.

4. Scalability

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Conventional data center configurations can easily become inflexible, making it difficult to grow your business and adjust to changing market conditions. As your company grows, colocation enables you to add or remove server space from your IT infrastructure easily.

Due to its adaptability, you can take advantage of fresh opportunities and adjust to the requirements of the market without being constrained by infrastructure.

5. Security

Advantages of data center colocation include security measures to stop data breaches that frequently go beyond what is possible with the majority of on-premises setups, including:

  • Physical security like CCTV cameras, biometric authentication, and round-the-clock manned security
  • Sophisticated cybersecurity procedures, intrusion detection tools, and firewalls.

6. Geographic Reach

By partnering with colocation providers, businesses can extend their geographic reach. Moreover, they can offer low-latency connectivity and fast data transfer speeds to consumers in various locations. These providers have data centers in different countries and regions.

7. Green Initiatives

Many colocation providers use eco-friendly techniques, such as energy-effective cooling systems and green energy sources, to lessen their carbon footprint and promote sustainability initiatives.

Businesses can comply with their corporate social responsibility objectives by colocating to a green data center.

8. Dependability

Colocation facilities provide power, cooling, and communication systems for servers to guarantee continuous connectivity.

Businesses can purchase the tools and materials needed to implement comparable structures internally. However, doing so may cost a sizable sum of money in addition to manpower and space. On the other hand, data centers store multiple data backups and also provide increased protection against power outages.

9. IT Expertise

Businesses can easily find a group of qualified specialists through colocation at a time when there is a continuous shortage of IT professionals. These experts help organizations with the planning, execution, and administration of technological initiatives in addition to monitoring and maintaining the data center.

10. Disaster Recovery and Business Continuity

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Colocation facilities frequently have redundant internet access, backup power generators, and data replication features as part of their disaster recovery services. This guarantees that companies can bounce back from unforeseen setbacks quickly and carry on as usual.

11. Third-Party Maintenance

Many times, businesses don't consider server assistance devices until there is a problem. To guarantee that servers are operating at peak efficiency, data centers employ specialized systems and personnel to develop, monitor, and upkeep support systems.

12. Regulatory Compliance

Colocation providers ensure that organizations' data is managed following the strictest security standards. They conduct extensive audits and adhere to standards like SOC 2, HIPAA, and PCI DSS. Colocation data centers play a major role in enhancing company compliance equilibrium.

13. Vendor Ecosystem

Colocation acts as a gathering platform for business partners, service providers, and infrastructure vendors. Thus, its facilities give companies a chance to network, cooperate, and get access to a variety of IT solutions and know-how.

Your company can reach a wider audience and provide better customer service to consumers in different areas thanks to this global network. This aspect can be very helpful for smaller businesses who want to have a more "glocal" appearance.

14. Independence to Concentrate on Business Objectives

Owning and operating your own data center may require a lot of resources, taking your beneficial IT staff members' attention away from important business tasks.

By taking on the responsibility of regular maintenance and security, colocation frees up your internal IT staff to concentrate on more strategic tasks like innovation, customer support, and business expansion.

Colocation gives you access to a group of knowledgeable IT specialists who function as a subsidiary of your team to ensure your infrastructure is operating efficiently.


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Businesses can reap the benefits of a substitute for internal data storage: colocation. Does your company value data security or less maintenance more highly than other factors? Is there a space constraint on your company, but you still need a strong IT infrastructure?

Colocation is your ideal solution! Achieve reliable IT infrastructure, connectivity, capability, and safe data storage.

For a high-performance and reliable colocation hosting solution, head out to Vodien. From 24/7 360-degree monitoring to a 230-volt uninterruptible power supply with full redundancy, Vodien offers top-notch colocation solutions for business.

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