Choosing the Best Colocation Providers – A Comprehensive Guide

When selecting the best colocation provider, it is important to consider many factors that will directly impact the efficiency and reliability of your IT infrastructure. Managing the servers and networking equipment that powers your business can be a challenge that affects every aspect of your ability to conduct daily operations.

Furthermore, most organizations simply don’t have the resources to have their own data centers. Therefore, maintaining this digital infrastructure on-site requires constant expertise and expenses, with plenty of risks along the way.

So, let’s learn more about the essential criteria for choosing the best colocation provider to ensure your data remains secure, accessible, and optimally managed.

Table of Contents
What is Colocation? Understanding the Basics
What Type of Space is Available at a Colocation Data Center?
What is the Difference Between a Data Center and Colocation?
Colocation vs Cloud Services – What Are the Differences?
How to Choose the Best Colocation Services
Discover Why DartPoints is the Best Colocation Provider
Cloud vs. Colocation – A Complete Guide

The Growing Demand for Colocation Services

Housing your digital infrastructure within a colocation data center has many benefits. It’s cost-effective and reliable, and it gives your organization the freedom and elbow room to grow or to scale your colocation services up or down as needed.

However, the most critical aspect of using a colocation data center is identifying and partnering with the best colocation providers available. According to recent research from Goldman Sachs, the rise of artificial intelligence is expected to drive a 160% increase in data center power demand. Enterprise organizations are a major force behind this surge, as their large-scale AI workloads and global operations require advanced colocation solutions.

Additionally, combined with the rising cybersecurity threats and natural disasters, having a colocation provider who is ahead of these challenges and can ensure the constant reliability of colocation services is crucial.

What is colocation? Understanding The Basics

A colocation data center, also known simply as a colo center, is a facility where multiple businesses and organizations can rent space to house their networking equipment, servers, and other computing hardware.

Colocation providers serve a diverse range of customers across industries, each with unique infrastructure requirements.

These colocation data center tenants essentially share the cost of power, cooling, bandwidth, and security. However, they also have access to state-of-the-art facilities that minimize – or virtually eliminate – potential cybersecurity risks, physical security risks, and downtime.

Essentially, the colocation data center tenant provides the equipment (or leases it from the colocation provider). Alternatively, the colocation data center ensures that all requirements when it comes to power, bandwidth, cooling, compliance, and security are met and optimally exceeded.

The data center/colocation model gives organizations access to the best facilities possible, reducing the cost and expansive time required to maintain their IT infrastructure.

What type of space is available at a colocation data center?

The best colocation providers offer multiple options for the type of space that tenants can access and utilize within the data center.

Generally speaking, colocation data centers offer private data center suites, cabinets, cages, or rack space. In addition, the cost generally fluctuates depending on how much data center space the client needs. (For example, private suites are usually more expensive than rack space.)

Keep in mind that the top colocation providers ensure that you can adjust your data center space as needed throughout your tenancy.

For example, as your business grows, you may need to move your equipment to private suites instead of rack, cabinet, or cage spaces. Therefore, your colocation provider should offer your organization options to do just that.

The importance of colocation in modern business

In our modern business environment, there is an ever-growing reliance on networking and IT infrastructure. Colocation services ensure business continuity by providing reliable and redundant systems required to function, including power and cooling.  Additionally, they provide diverse connectivity options and security measures like biometric scanners and firewalls.

This means organizations across all industries have more security and peace of mind when avoiding disasters, emergencies, attacks, and downtime.  Moreover, a data breach or system failure in one organization can spiderweb and affect several businesses in a community or even globally. Colocation services help ensure that end-users experience minimal disruption and optimal performance, supporting seamless access and engagement. Therefore, it is important to have reliable connectivity to ensure there are no gaps in the supply chain.

What is the difference between a data center and colocation?

Data centers and colocation signify two very different concepts.  

A data center is a physical facility that houses servers and equipment.  On the other hand, colocation refers to the service where organizations or tenants rent space from these facilities to house their own equipment. Simply put, a data center is a location, while colocation is a service that uses this space.

What are the differences between having your own data center and using colocation services?

Responsibility and cost are the key differences between having your own data center and utilizing .

With a dedicated data center, you own your equipment, but you also own and maintain the entire data center site. This is why privately owned data centers are generally utilized by some of the largest cooperation and companies in the world, like Google or Microsoft.

An overview of the key points of distinction between a private data center and colocation services include the following:

Management and ownership 

The data center owner is responsible for the facility and all costs and operations involved, which includes physical security, power, cooling systems, data protection, and all mission critical components.

Cost 

Owning a data center involves a substantial upfront investment but requires continual costs to maintain the networking infrastructure. This includes energy bills, personnel to provide physical security, and all expenses correlating with data center facilities.

Control 

The bright side of owning your data center is that your organization has maximum control of how the data center is managed and operated, while with colocation, you have less control over the overall infrastructure, though you still manage your own server and other digital infrastructure that powers your business.

Maintenance and reliability 

The data center owner is responsible for all maintenance and reliability initiatives, including hardware repairs, power management, and environmental controls.

When to choose a dedicated data center

You will likely want your own data center if your organization requires the following factors: 

•  Needs a very high level of customization and maximum control over the facilities that house your IT infrastructure.
• Needs to manage large amounts of data with highly unique security requirements.
• It has a significant upfront and continual budget that can handle the expenses of owning and operating a data center. Also, it has significant IT resources to provide continual facility management.

When to opt for colocation services

You will likely want to choose colocation services if your organization requires the following factors:

• Wants to avoid higher costs or simply does not have the resources to build, operate, and maintain a data center.
• Needs the flexibility to scale IT infrastructure quickly as your company needs ebb and flow.
• Wants access to the best data center facilities and IT expertise available.

Colocation vs Cloud Services – what are the differences?

When it comes to colocation versus cloud services, the primary differences focus on how data is stored and managed and how companies pay for these services.

Colocation data centers can connect with cloud services, telecommunication networks, and other IT infrastructure, enabling hybrid cloud capabilities and seamless data sharing for clients.

In a cloud environment, the cloud provider owns and maintains all the hardware and networking infrastructure that powers your business. In colocation, your organization owns the hardware and simply rents the facilities that ensure this infrastructure is continually operational.

Critical differences between colocation services and cloud services include the following:

• Costs – Cloud services tend to have lower upfront costs simply because the cloud provider owns all the hardware. Colocation tenants must purchase their services and networking infrastructure, but the long-term costs and ongoing fees are generally lower than cloud services.
• Control – Colocation services offer more control over your networking infrastructure, because you own the servers and other hardware. In a cloud environment, you have no control over how the infrastructure is managed.
• Compliance – One of the key factors to examine when choosing between colocation and cloud services is compliance. Not all cloud providers have stringent compliance measures that align with all industry standards, but colocation data centers may have more of these regulatory musts in place.

Colocation Companies and Their Role

Colocation companies are at the heart of today’s digital infrastructure, serving as the backbone for businesses that require secure, reliable, and scalable environments for their IT equipment. As a colocation data center provider, these companies deliver much more than just physical space—they offer a comprehensive suite of services designed to support the evolving needs of modern organizations. From robust physical security and advanced cooling systems to managed hosting and continuous monitoring, colocation providers ensure that businesses can operate with confidence, knowing their critical data and equipment are protected.

Top colocation providers, such as Digital Realty, Equinix, and NTT Global Data Centers, have set the standard for excellence in the industry. These colocation companies are trusted by large enterprises and organizations worldwide, providing essential infrastructure that enables seamless business operations. Their data centers are engineered for maximum uptime, security, and efficiency, making them the go-to choice for businesses that demand the highest levels of reliability and support. By partnering with a leading data center provider, companies gain access to world-class facilities, expert support, and the flexibility to scale as their needs change.

The evolving landscape of colocation providers

The colocation industry is undergoing rapid transformation as providers respond to the shifting demands of businesses in a digital-first world. Today’s colocation providers are no longer limited to offering just space and power—they are expanding their portfolios to include a wide range of solutions, such as cloud services and hybrid IT infrastructure. This evolution is driven by the increasing need for agility, scalability, and seamless integration with cloud providers.

Colocation companies are investing heavily in new technologies, including artificial intelligence and edge computing, to deliver innovative colocation services that support digital transformation. As businesses seek to balance on-premise, cloud, and colocation solutions, providers are adapting by offering flexible, integrated services that can be tailored to unique business requirements. This commitment to innovation ensures that colocation providers remain essential partners for organizations looking to future-proof their IT infrastructure and stay ahead in a competitive landscape.

How colocation companies support digital transformation

Colocation companies play a pivotal role in enabling digital transformation by providing the necessary infrastructure and expertise for businesses to operate efficiently and securely. With the surge in demand for data storage, processing power, and connectivity, colocation providers are building state-of-the-art data centers equipped with advanced cooling systems, redundant power sources, and robust physical security measures. This allows businesses to focus on their core operations, while the colocation provider manages the complexities of maintaining and operating the IT infrastructure.

In addition to physical infrastructure, colocation companies offer a range of value-added services, such as remote hands support, to assist with equipment management and troubleshooting. By facilitating access to multiple cloud providers, colocation companies empower businesses to scale their IT resources up or down as needed, supporting both growth and cost optimization. This flexibility, combined with expert support and secure facilities, makes colocation providers essential partners in any organization’s digital transformation journey.

Colocation Data Considerations

When evaluating colocation services, businesses must carefully consider how their data will be managed, protected, and supported within colocation data centers. The right colocation provider will offer the necessary infrastructure to ensure that your IT equipment operates efficiently, while also maintaining the highest standards of data security and integrity. From robust physical security to advanced monitoring systems, colocation data centers are designed to safeguard your critical data assets and support your business’s ongoing operations.

In addition to security, it’s important to assess the provider’s ability to support your specific infrastructure needs, including power, cooling, and connectivity. A reliable colocation data center will have the resources and expertise to accommodate your current requirements and scale with your business as it grows. By partnering with a provider that prioritizes both infrastructure and security, businesses can confidently leverage colocation services to enhance their IT operations.

Data migration and onboarding

A seamless data migration and onboarding process is essential for businesses transitioning to a colocation environment. The process of moving your data and equipment to a new data center must be handled with precision to minimize downtime and avoid disruptions to your operations. Leading colocation providers offer comprehensive support throughout this process, including remote hands services and technical expertise to ensure a secure and efficient migration.

Colocation companies understand that every business has unique requirements, so they provide tailored resources and project management to guide you through each step of onboarding. Clear communication, detailed planning, and a focus on security are key to a successful transition. By choosing a colocation provider with a proven track record in data migration and onboarding, businesses can reduce risk, maintain business continuity, and set the stage for a successful partnership in their digital transformation journey.

How to choose the best colocation services

When you start your research on colocation providers, you’ll quickly discover that there are many colocation companies to choose from, and not all colocation companies are created equal. It is crucial to identify your organization’s specific needs and potential risks before selecting a provider.

As such, when choosing colocation services for your organization, ensure the colocation facilities and data center check the following boxes.

Location

Natural disasters can certainly strike in any region of the world. However, smart colocation providers offer multiple data center locations that are strategically placed in safer regions and optimally close to your own business location.

Network Connectivity

The data center provider determines network connectivity, as they determine what inherent infrastructure is installed and how it is managed. For this reason, you want to examine track records for the following:

• Uptime – Most top data center providers can guarantee approximately 99% of uptime, but some distinctive industries, such as finance and healthcare industries, might need 99.99% uptime guarantees or higher, per industry regulations.
• Redundancy – The term redundancy refers to having enough backup systems in place to ensure that this higher uptime threshold is met. Redundancy ensures an uninterrupted power supply, even if there is an issue with fundamental infrastructure, like the main power and cooling systems.

Compliance

Many industries need to adhere to strict compliance guidelines for their networking equipment and infrastructure. Make sure that your colocation services provider meets and exceeds these expectations.

For example, at DartPoints, adherence to exacting compliance standards is a cornerstone of our operations. Our data centers comply with key industry certifications and regulations, including ISO and SOC. Adhering to these certifications and regulations aligns with your business’s compliance requirements and ensures the highest levels of data protection.

Security

A top colocation data center has most (and optimally all) of these security measures in place:

• Firewalls
• Network segmentation
• 24/7 monitoring with advanced technology, including intrusion detection systems and multifactor authentication
• Highly trained personnel
• Backup or redundancy options in case of an emergency

In short, your colocation data center should have multiple initiatives to safeguard the facility, servers, and networking connectivity from physical and digital threats.

Enhanced Cooling and Power Standards

Colling and power are the backbone of a data center’s ability to function. Therefore, with power usage skyrocketing in the data center world, it’s essential that your colocation services provider is ahead of the curve. Look for data center providers that utilize the best technology possible and optimally sustainable technology and power sources to ensure uninterrupted power and network connectivity.

Scalability and Efficiency

Your business needs will grow over time, especially as your company explores new technologies like AI or expands the amount of data you need to access and use on a continual basis. You want to ensure that your colocation services provider can adapt to these changes and offer your business the freedom to grow and expand the space you need over time.

Optimally, if you need to scale down your colocation data needs, the right colocation provider will offer flexibility in this vein as well, so your costs are fluid, along with your needs.

Cost

Cost plays a role in colocation services, and you want to ensure that both short-term and long-term expenses align with your business’ evolving budget.  Ensure that your colocation provider reviews all costs up front and answers all your cost or tenant questions before you lease space within a colocation data center.

This is a sign that your colocation data center provider is reliable now and will continue to be reliable miles down the road.

Discover Why DartPoints is the Best Colocation Provider

At DartPoints, we hit all the marks when it comes to reliable, flexible, and time-tested colocation services. We can also give your business continual peace of mind that all your essential IT infrastructure is always safe and secure.

Our colocation data centers are ahead of the curve when it comes to security, sustainable power and cooling systems, redundancy, and meeting compliance standards. In addition, we offer flexible options to align with every type of organization or business.

We know that colocation services should be tailored to the exact needs of the business, which is why we have client-focused support from your first conversation to the years ahead as your business grows and evolves.

Reach out to our colocation services experts today to start the conversation. Find the best colocation services solution for your organization’s distinctive and constantly changing needs.  

Contact us today!