To understand a colocation centre, one first needs an understanding of a data centre. A data centre is a facility, or a specific area designed to house a computer server system and its related components. These components include telecommunications and data storage as well as redundant or backup power supplies and redundant data communications. Data centres are designed with environmental controls in mind such as air conditioning and fire controls as well as sophisticated security devices to ensure that equipment doesn’t overheat and remains safe.

Data centres which make provision for bandwidth and power and which require that the customer or user provide the necessary hardware and are responsible for managing it, are called colocation centres.

Colocation centres allow multiple users to locate their networks, servers and storage requirements and be able to interconnect to a variety of telecommunications and other network service providers with the minimum of complexity and reduced costs.

Colocation is becoming more and more popular because of the cost and time savings when compared to having a data centre in-house. Customers or users who can gain great benefits from using a Colocation centre are web commerce companies who need this facility in order to create a safe and cost effect environment for their website.

Major enterprises also benefit because this facility helps with disaster avoidance and off site data back up, which all help with business continuity if the worst should happen.