A colocation center (also spelled co-location, or colo), is a type of data centre where equipment, space, and bandwidth are available for rental to retail customers.

Colocation means moving the company’s physical servers to a server center

Colocations provide space, power, cooling, and physical security for the server, storage, and networking equipment of other firms. They also connect them to a variety of telecommunications and network service providers.

The main difference between colocation and the public cloud service is the way the data is stored and managed (physical assets versus virtual ones). Like colocation, cloud-based infrastructure services are shared facilities. In cloud services, the cloud provider manages your servers, storage and network elements. Colocation requires businesses to set up servers, storage and network elements.

Finnish real estate investors are interested in investing in colocation data centers.