Colocation is essentially a data center, which provides space renting facility to businesses for the servers as well as other kinds of computing hardware.
A colocation data center
has all kinds of facilities that any other data center will have such as a building (first of all), physical and virtual security, power, back-up power, and cooling system. There are spaces in these specialized buildings with rooms, cages, cabinets, and racks so that the customers can put their servers as well as storages there.
A new kind of facility is also offered by many colocation facilities and that is the managed services, which is similar to the managed hosting services, provided by many renowned hosting services.
Usually, in the past the colocation facilities (called colos also) were used extensively by the private companies for disaster recovery. However, currently the trend has changed somewhat. These colos are mainly nowadays used as cloud service providers.
If you want to put your storage or server in such a colocation data center, it is important for you have a secured SLA
(Service Level Agreement). Don’t forget to examine the SLAs closely.