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What is Colocation

by Katiya Lennon, 28 March 2025
Updated - March 28, 2025

Data Centre Colocation

Today, infrastructure with exceedingly secure power and high performance is the backbone that supports all applications and stores critical data for any business operation in any connected world. Essentially, the data centre colocation is one of such viable alternatives available for that purpose: it solves the costly problem of building and maintaining an in-house data centre. However, what colocation really is and the reasons for thinking about switching back from the Cloud and the ongoing monthly costs?

What is Data Centre Colocation?

Colocation (also known as data centre colocation) is a service in which any company can rent space in a third-party data centre for housing their servers and IT hardware. These colocation facilities offer a wide array of services, including:

Companies that collocate in a Tier III datacentre in the UK will have the same security and availability but do not have to worry about the management of their critical infrastructure.

Reasons Companies in the UK Choose Colocation

There are several advantages to colocation for any UK business:

1. Saving Costs

Building a private datacenter and maintaining it is expensive. With colocation, organisations only need to pay for the space, power, and connectivity they require, meaning they can lower both capital and operational costs.

2. Greater Security and Compliance

UK businesses must adhere to tough data protection on law, and to industry-specific standards (ISO 27001, PCI DSS). Colocation will be able to comply with these strict laws prepared by the service provider with their sophisticated security measures and regular audits.

3. Higher Uptime and Reliability

Top UK colocation providers offer a 99.9% uptime SLA commitment.

4. Scalability & Flexibility

With the growth of the business comes more requirements for the setup of the organisation’s infrastructure. A colocation will provide the avenues through which the customers can bring any additional requirement needed for their IT environment, i.e. rack space, higher bandwidth, or private cloud integration, as needs arise.

5. Major UK Network Hubs within Reach

A number of UK data centres are strategically located near key connectivity hubs such as London Docklands, Manchester, and Gloucester (Indectron, for instance), thus giving ultra-low latency connections for financial services, data, and cloud applications.

Colocation map of the UK showing Manchester, Gloucester and London

Carrier Neutral Colocation Data Centre Indectron Shield House Gloucester

Key Considerations for Choosing a Colocation Facility in the UK

When considering the potential colocation locations, keep these key considerations in mind when choosing a provider:

Location – Ensure the facility is close to your business or customer base.

Security – Ensure the facility is secure around the clock, including biometric access systems, ensuring UK standards are met.

Connectivity – The facility should be carrier-neutral, with multiple network providers to choose from.

Scalability – Confirm the provider’s willingness and ability to grow with you.

Data sovereignty is increasingly a matter of concern since organisations are relying more and more on the cloud based systems, and with that comes often an elusive, unreliable promise of where and how data will be stored, managed, and safeguarded.

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