What Is Data Centre Colocation? A Guide for UK Businesses
Date Published: March 4, 2025

When your current server room starts feeling a little too snug, or your IT setup is growing faster than your space can handle, data centre colocation might be just what you need. It’s a smart middle ground between running your own infrastructure and moving fully to the cloud – perfect for businesses looking for a more reliable, secure setup without the costs of building one from scratch.

Key Takeaways

  • Managing IT in-house can be overwhelming. With data centre colocation, you can scale without sacrificing control.
  • You still own and manage your servers, but benefit from professional-grade infrastructure and better uptime.
  • Expand your setup with less hassle, just bring your hardware, and the data centre handles the rest.
  • Access improved connectivity, support, and physical security without the overheads of your own facility.
  • For businesses thinking long-term, colocation is a cost-effective step toward greater performance, flexibility, and peace of mind. Data centre colocation gives you a smarter way to scale.

What Is Data Centre Colocation?

Colocation (or “colo”) is when a business places its own hardware, like physical servers and networking gear, in a third-party colocation data centre facility. You’re still in the driver’s seat – managing your own equipment – but it lives in a secure, purpose-built environment with optimal server performance, cooling, backup power, and around-the-clock support.

Imagine giving your servers a five-star hotel stay – they’re still yours, but they now benefit from professional-grade infrastructure at a dedicated colocation facility.

How Does Colocation Work?

Here’s how the setup usually looks:

  • You bring the gear – Your servers, storage, and networking kit.
  • The colocation provider handles the heavy lifting – Think power, cooling, internet connectivity, physical security, and data centre space.
  • You stay in control – You’re free to access your hardware, run updates, tweak settings, and keep things running your way.

Most providers also offer remote hands support – their engineers can handle small maintenance jobs if you’re off-site.

Key Benefits of Colocation

Colocation data centre facilities come with a long list of perks, especially when compared to trying to scale your on-premises data centre or small server room.

1. Stronger Security

Colocation sites are designed with cyber security in mind – we’re talking CCTV, firewalls, backup systems, and round-the-clock monitoring. Good data centres bake security into everything they do.

2. Maximum Uptime

With redundant power, cooling capabilities, and multiple providers for network access, you’re looking at a setup built for operational reliability. Your core systems keep humming, even if your office loses power.

3. Room to Grow

As your IT system evolves, colocation scales with you. Add more servers without needing a bigger in house data centre.

4. Better Cost Control

You share high-end infrastructure – like fire suppression, backup generators, and enterprise-grade cooling – with others. That keeps ongoing maintenance costs and data centre costs lower.

5. Improved Connectivity

Multi tenant data centres often give you direct access to cloud service providers, ISPs, and carriers. That means faster, more flexible connectivity systems.

Colocation also supports many services data centres typically offer – from basic hosting to full-scale IT infrastructure support.

Who Uses Colocation?

It’s not just global corporations using colocation – it’s also:

  • Commercial enterprises scaling up securely.
  • Tech businesses with specific hosting needs.
  • Healthcare and finance firms prioritising data storage and compliance.
  • Enterprise customers who want hands-on control of their IT hardware.

It’s also a great stepping stone in any digital transformation journey, helping bridge traditional systems and cloud infrastructure.

And if you’re relying on just one service – but need it running 24/7 – colocation makes that happen.

Colocation vs Cloud: What’s the Difference?

They might sound similar, but they’re not:

  • Colocation = You supply the gear, manage it yourself, and place it in someone else’s facility.
  • Cloud = You rent resources on shared systems and let someone else manage the rest.

Think of colocation as a hybrid – the control of your own data center, with the resilience commercial data centres enable.

Why Colocation Works for UK Businesses

Colocation is a win-win. You keep control of your setup while benefiting from a data centre’s economies of scale, 24/7 support, and better uptime.

It ticks a lot of boxes:

  • Compliance with regulations
  • No need for costly on-site investment
  • Flexibility to evolve your business IT strategy
  • Confidence in maximum redundancy
  • An off site location that’s energy efficient, with sufficient power and on-demand support

It also slots neatly alongside cloud services, offering a steady foundation for hybrid setups.

And when you think about the broad services data centres provide, it’s easy to see how data centres benefit any company needing reliable infrastructure.

Thinking About Colocation?

Maybe your server cupboard is overflowing, or your tech team’s stretched thin. Either way, colocation could be the next logical step – keeping your systems secure, supported, and ready for whatever’s next.At Asanti, we provide secure, enterprise-grade colocation services from purpose-built facilities across the UK. Get in touch to see what’s possible.

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