Data Center Colocation Services: The Complete Guide explains how renting space in third-party data centers can save costs and boost IT efficiency. Learn about different types of colocation, crucial features, and tips for selecting the best provider to optimize your infrastructure.
Key Takeaways
- Colocation allows businesses to rent space in third-party data centers, providing advanced reliability and efficiency without the costs of building and maintaining their own facilities.
- There are three main types of colocation: retail, wholesale, and hybrid cloud, each catering to different business needs and scale requirements.
- Choosing the right colocation provider involves considering location, security features, redundancy systems, and compliance to ensure optimal performance and disaster recovery.
Understanding Data Center Colocation
Colocation is the practice of renting space in a third-party data center for housing your IT infrastructure.
Instead of investing in their own data center, businesses can leverage colocation data centers to ensure enhanced reliability and efficiency.
Organizations benefit from advanced power redundancy and cooling systems when they use colocation services, features that may not be feasible in their own facilities.
Renting space within the data center for servers and equipment reduces construction and staffing costs.
Additionally, colocation services often include support to manage IT equipment more efficiently.
Whether it’s renting rack space, cabinets, or private suites, businesses can utilize part of a high-availability, energy-efficient data center facility.
This makes colocation an attractive option for organizations looking to optimize their IT operations without the overhead of maintaining their own facilities.
Types of Colocation Facilities
Colocation facilities come in three main types: retail, wholesale, and hybrid cloud.
Retail colocation involves customers leasing smaller spaces such as individual racks or cages within a data center.
This option is ideal for businesses that need a smaller footprint but still require the benefits of a professionally managed data center environment.
Wholesale colocation, on the other hand, allows tenants to lease larger spaces at more economical rates, though it typically requires higher power and space commitments.
Hybrid cloud colocation combines elements of both retail and wholesale colocation, allowing businesses to integrate in-house and outsourced data center services, creating a flexible and scalable IT environment.
How to Find Colocation Facilities
Hear from ENCOR’s Chief Growth Officer Jeff Howell explain the benefits of using a data center consultant to tap into thousands of data center facilities globally at no cost to you.
Key Features of Colocation Services
One of the standout features of colocation facilities is the provision of redundant power sources, which ensure reliable operation even during outages.
These facilities also boast advanced cooling systems designed to maintain optimal temperatures for server operation, preventing overheating and ensuring longevity.
High-speed internet access is another standard feature offered by colocation providers, ensuring robust network connectivity for hosted servers.
Additionally, colocation facilities enhance data security through strict access controls and advanced surveillance systems, protecting against unauthorized access and ensuring the physical security of the equipment.
Benefits of Using Colocation Services
Using colocation services can significantly reduce the costs associated with building and maintaining a private data center by sharing infrastructure expenses.
This cost efficiency, coupled with centralized IT operations, makes colocation an attractive option for many companies.
Colocation centers also enable companies to scale their IT infrastructure easily by renting additional space as needed, thus avoiding the overhead of building a new facility.
Moreover, data center colocation can lead to superior performance due to the climate-controlled, dust-free environments that are maintained within these facilities.
The Biggest Cost to Avoid in Colocation
Jeff explains what the biggest expense item is that companies overpay for within their colocation agreement and how to avoid this common pitfall.
How Data Centers Work
Data centers operate based on client agreements that define the level of management provided.
These data center facilities utilize specialized systems such as HVAC and power management technologies to ensure the protection and efficiency of the equipment housed within.
Colocation providers ensure reliable power through backup generators and battery systems, maintaining uninterrupted operations even during power outages.
Building management software monitors critical facility health indicators, such as HVAC performance and power load levels, ensuring optimal operating conditions.
The day-to-day operations, technical support, and maintenance are carried out by data center staff, who work diligently to ensure client systems run smoothly.
However, clients retain specific responsibilities for their equipment management, including configuration and monitoring after installation.
On-site specialized support teams are available to assist with maintenance and swiftly resolve any problems that arise, providing peace of mind and allowing businesses to focus on their core operations.
Physical Security in Colocation Data Centers
Colocation facilities employ strict security measures to protect valuable assets, such as surveillance and fire suppression systems.
A multi-layered security approach ensures both data and physical property are safeguarded against potential threats.
Key biometric access controls, including fingerprint and facial recognition, provide an added layer of authentication to prevent unauthorized access.
Additional security features like mantraps, which are security vestibules requiring authentication before access, further strengthen the facility’s defenses.
Surveillance systems in colocation data centers include high-definition CCTV systems that monitor critical areas around the clock, providing real-time detection of security breaches.
Video monitoring validates audit trails of visitor access, ensuring accountability and enhancing overall data center security.
Lockable cabinets, often referred to as mini-cabs, also enhance security for partial racks by preventing unauthorized access.
Power and Cooling Systems
Effective power and cooling infrastructure in colocation centers is crucial for minimizing downtime and ensuring business continuity.
High-performance cooling systems help maintain optimal operating conditions for equipment, preventing overheating and ensuring longevity.
Colocation facilities utilize diverse power redundancy configurations like 2N and N+1 systems to ensure a consistent power supply.
Redundant power measures include two adjacent power sources, multiple PDUs, UPSs, and power panels.
Advanced cooling technologies, such as chilled-water systems and air-side economizers, are employed to enhance temperature management and improve efficiency.
Backup power solutions in colocation are typically designed to handle brief outages or brownouts, with backup generator systems ensuring continuous run-time at full load with stored extra fuel.
Combined with advanced monitoring and detection systems, these measures enhance operational reliability and ensure high uptime guarantees.
Connectivity Options
Colocation data centers offer multiple redundant network connections to maintain uninterrupted operation of critical applications.
Partnering with multiple carriers and potentially offering their own service enables colocation facilities to ensure robust network connectivity.
A reliable data center provider can enhance these capabilities further.
Various connectivity options, including dedicated direct connections to the cloud, other data centers, and enterprise networks, help create redundant network structures that lessen the chance of service interruptions.
Direct connectivity to internet exchange points boosts performance and lowers latency, providing significant benefits for businesses.
Comparing Colocation with Cloud Services
In a colocation setup, businesses own their IT assets and maintain physical IT equipment, whereas in cloud services, they do not own the underlying infrastructure.
Colocation provides dedicated resources for businesses, unlike cloud services where resources are often shared among users.
Colocation can lead to higher upfront costs as businesses need to invest in their own hardware, but it offers full control over hardware and software.
On the other hand, cloud services typically offer lower initial costs and elastic scalability without physical adjustments.
A hybrid IT architecture, which combines colocation with cloud platforms, allows businesses to leverage the benefits of both environments.
Strong integration capabilities with various cloud platforms are essential for businesses looking to future-proof their IT strategy.
Selecting the Right Colocation Provider
When selecting a colocation provider, factors such as the location of the data center, accessibility for teams, and proximity to business operations are crucial considerations.
It’s also essential to evaluate natural disaster risks like floods or seismic activity to ensure the safety of your data and operations.
Reliability features like redundant power sources, backup generators, robust cooling systems, and service level agreements (SLAs) are vital for ensuring consistent performance.
Additionally, understanding compliance requirements and evaluating scalability features are important steps in selecting the right colocation provider.
Disaster Recovery and Business Continuity
Colocation facilities utilize backup power systems to ensure uninterrupted service during outages, which is a critical component of any disaster recovery plan.
Redundant systems help avoid IT outages, enhancing disaster recovery capabilities and ensuring business continuity.
Geographically dispersed colocation facilities minimize downtime by reducing the impact of localized disasters.
For an effective disaster recovery strategy, it is essential to consider multiple data centers with fast interconnections and peering agreements.
Managed Hosting Services
Managed hosting services are an additional offering from colocation providers that allow businesses to outsource physical infrastructure and IT equipment management.
This helps streamline IT infrastructure management, enabling in-house IT teams to focus on more critical functions.
Managed hosting services typically include proactive monitoring, maintenance, routine patching, upgrades, and options for hardware upkeep, providing businesses the freedom to maintain control while receiving expert assistance.
Cost Structure of Colocation Services
Colocation services typically range from around $99 for 1 RU to $450 for 20 RU, with an average cost in major North American markets being about $163.44 per kilowatt.
Factors influencing pricing include space, power usage, connectivity options, and additional services required by the client.
Hidden costs such as power overage fees and bandwidth overage fees can add unexpected charges.
Contract lengths can affect pricing, with longer agreements offering discounted rates but reduced flexibility.
Data centers that maintain lower Power Use Effectiveness (PUE) metrics tend to offer reduced power costs, contributing to lower overall colocation pricing.
Data Center Tiers Explained
Data centers are classified into four tiers, each representing varying levels of redundancy and uptime performance:
- Tier I: Offers the least reliability, with no redundancy and a guaranteed uptime of 99.671%.
- Tier II: Provides some redundancies but still lacks a fully independent system, achieving 99.741% uptime.
- Tier III: Designed for ‘concurrent maintainability’ and guarantees 99.982% uptime with N+1 redundancy.
- Tier IV: Fully fault-tolerant, featuring dual distribution paths and ensuring 99.995% uptime.
Each tier builds upon the previous one, meaning Tier III includes all the requirements of Tier II and Tier I.
The cost of data center services generally increases with the tier level due to enhanced reliability and performance.
Reliability is often quantified as uptime, with five 9s (99.999%) being a standard for quality colocation services.
Geographic Location Considerations
The geographic location of a colocation facility significantly influences factors such as accessibility, costs, and disaster risks.
Selecting a colocation facility close to your company’s headquarters can enhance accessibility for technology teams when maintenance or service is required.
It’s essential to evaluate natural disaster risks like hurricanes and earthquakes when selecting a colocation site to ensure the safety of your data and operations.
Cities like Denver, Phoenix, and Salt Lake City have a lower risk profile for natural disasters.
This makes them more suitable locations for data centers.
Additionally, the availability of power and multiple connectivity options at a colocation site are critical factors that impact operational reliability and performance.
Locating a data center closer to customers can result in substantial performance benefits due to reduced latency.
Future-Proofing Your IT Strategy with Colocation
Colocation enables companies to grow their data storage capabilities without needing extra hardware investments.
Modernizing IT infrastructure through colocation can enhance scalability and responsiveness to changing business demands.
Incorporating colocation services can provide significant operational cost savings by improving efficiency and performance.
Investing in modernization, interconnection, cloud connectivity, and software-defined technologies through colocation services contributes to future-proofing data centers.
Nearly 75% of organizations are planning to implement a hybrid IT environment, highlighting the trend toward integrating cloud platforms with colocation.
Increased use of multiple cloud platforms and integration with colocation hardware is a future trend for businesses.
Migration Assistance
Having a local support team in colocation services provides a personal touch for equipment installation and system updates.
A knowledgeable technical support team and engineers are essential for careful planning during migration to a new colocation data center.
Kick-off calls between clients and data center staff are crucial for a smooth transition and clarify roles and responsibilities.
DataBank offers professional support for businesses.
Their services help manage collocated infrastructure effectively.
Data Center Tours
Data center tours are essential for potential clients to evaluate the facilities and services offered.
Visitors can gain a firsthand experience of the data center’s operations and environment through tours.
Tours allow potential clients to visually inspect key features such as security systems, power redundancy, and cooling solutions.
Scheduling a data center tour is highly encouraged to fully understand how the facility meets specific client needs.
Summary
In summary, data center colocation services offer a compelling solution for businesses looking to enhance their IT infrastructure without the substantial investment of building and maintaining their own facilities.
From understanding the various types of colocation facilities and key features to selecting the right provider and ensuring disaster recovery and business continuity, colocation provides numerous benefits.
By leveraging colocation, businesses can future-proof their IT strategy, scale efficiently, and maintain robust data security.
Consider colocation as a cornerstone of your IT strategy and take advantage of the myriad benefits it offers.
Frequently Asked Questions
How do colocation services support disaster recovery and business continuity?
Colocation data centers play a crucial role in disaster recovery and business continuity planning:
- Geographic diversity: Multiple locations for data replication and failover
- Redundant power and cooling systems to ensure uptime
- Advanced fire suppression and detection systems
- Regular disaster recovery drills and testing
- 24/7 remote hands support for quick issue resolution
By leveraging these features, businesses can maintain operations during unforeseen events and minimize downtime.
What factors should be considered when choosing a colocation provider?
When selecting a colocation provider, consider the following factors:
- Location and proximity to your business
- Power capacity and redundancy
- Cooling efficiency and environmental controls
- Network connectivity options and carrier diversity
- Physical security measures
- Compliance certifications (e.g., SOC 2, ISO 27001, PCI DSS)
- Scalability and expansion capabilities
- Service level agreements (SLAs) and uptime guarantees
- Remote hands support and managed services offerings
- Pricing structure and contract flexibility
Evaluating these factors will help ensure you choose a provider that aligns with your business needs and growth plans.
How do colocation services support hybrid and multi-cloud strategies?
Colocation facilities play a vital role in hybrid and multi-cloud architectures:
- Providing direct, low-latency connections to major cloud providers
- Offering flexible infrastructure to support both on-premises and cloud workloads
- Enabling data sovereignty compliance by keeping sensitive data on-site
- Facilitating easy migration between different environments
- Supporting edge computing deployments for improved performance
This flexibility allows businesses to optimize their IT infrastructure and leverage the benefits of both colocation and cloud services.
What are the environmental benefits of using colocation services?
Colocation data centers offer several environmental advantages:
- Improved energy efficiency through economies of scale
- Advanced cooling technologies that reduce power consumption
- Use of renewable energy sources (e.g., solar, wind)
- Implementation of green building practices and certifications (e.g., LEED)
- E-waste management and recycling programs
By leveraging these eco-friendly practices, businesses can reduce their carbon footprint and meet sustainability goals more effectively than with on-premises data centers.
What is the difference between cloud and colocation data center?
The key difference is that cloud data centers use virtual servers owned by the provider, while colocation centers allow businesses to own their physical servers in a shared space. So, it really comes down to whether you prefer the flexibility of the cloud or the control of colocation.
What managed services do colocation providers typically offer?
Many colocation providers offer a range of managed services to support their clients:
- Remote hands support for hardware maintenance
- Network management and optimization
- Security services, including firewall management and threat detection
- Backup and disaster recovery solutions
- Monitoring and alerting services
- Operating system and application management
- Cloud migration and hybrid cloud management
These services allow businesses to offload IT tasks to the colocation provider, freeing up internal resources for strategic initiatives.
What connectivity options are available in colocation facilities?
Colocation data centers offer various connectivity options to ensure high-performance and reliable network access:
- Multiple carrier options for internet and WAN connectivity
- Direct connections to major cloud providers (e.g., AWS, Azure, Google Cloud)
- Internet Exchange Points (IXPs) for peering
- Dark fiber options for dedicated, high-bandwidth connections
- Software-defined networking (SDN) for flexible network management
These options allow businesses to optimize their network performance and reduce latency for critical applications.
What are the main types of data center colocation services?
There are three primary types of data center colocation services:
- Retail colocation: Suitable for businesses needing smaller spaces, typically offering individual racks or cages.
- Wholesale colocation: Ideal for larger enterprises requiring extensive space and power, often leasing entire data center floors or buildings.
- Hybrid cloud colocation: Combines traditional colocation with cloud services, allowing businesses to integrate on-premises and cloud infrastructure seamlessly.
Each type caters to different business needs and scales, providing flexibility in choosing the right colocation solution.
How does colocation support edge computing initiatives?
Colocation data centers are increasingly supporting edge computing deployments:
- Providing strategically located facilities closer to end-users
- Offering smaller, distributed data center options for edge nodes
- Supporting low-latency connections for real-time applications
- Providing scalable infrastructure to accommodate growing IoT deployments
- Offering specialized cooling and power solutions for high-density edge computing equipment
By leveraging colocation for edge computing, businesses can improve application performance, reduce data transfer costs, and support emerging technologies like 5G and IoT.
How do colocation data centers ensure physical security?
Colocation data centers implement multi-layered security measures to protect client assets:
- 24/7 on-site security personnel
- Biometric access controls (e.g., fingerprint scanners, facial recognition)
- Video surveillance systems covering all critical areas
- Mantraps and secure entry points
- Visitor management systems
- Locked server cabinets and cages
These comprehensive security measures help prevent unauthorized access and protect sensitive data and equipment.
What are the benefits of using colocation services?
Using colocation services can significantly cut costs and provide scalability, while enhancing performance with better environmental control. It’s a smart choice if you’re looking to streamline operations without the overhead of managing a new facility.
How do colocation services enhance data security?
Colocation services significantly boost data security by implementing strict access controls, advanced surveillance, and biometric scanners. This multi-layered approach ensures your data is well-protected from unauthorized access.
What types of colocation facilities are available?
You have three main options for colocation facilities: retail, wholesale, and hybrid cloud, each providing various levels of space and services. Choosing the right type depends on your specific needs and scale.
How does colocation pricing typically work?
Colocation pricing models can vary, but generally include:
- Space: Charged per rack unit (RU), full rack, or square footage
- Power: Based on allocated power capacity (kW) or actual usage
- Connectivity: Charges for bandwidth and cross-connects
- Remote hands support: Often billed hourly or as a monthly package
- Additional services: Such as backup, security, or managed services
Some providers offer bundled pricing that combines these elements into a single monthly fee. It’s important to understand the pricing structure to avoid unexpected costs and ensure transparency.
What is colocation?
Colocation means renting space in a third-party data center to house your IT infrastructure, which boosts reliability and efficiency. It’s a smart way to manage your tech needs without the hassle of maintaining your own facility.
