The Pros And Cons Of Server Colocation For Your Business

Most businesses see colocation as a means to reduce expenses while increasing space, power, and physical security in their data centres. IT infrastructure may be costly, and colocation is one method to save money on new equipment. It becomes even more expensive when you include managing the hardware and other resources on-site. Because your servers are secured against fires, power outages, floods, and other disasters, data centre colocation is a cost-effective solution to provide physical security. 

Colocation center designers and builders strive to ensure that the floor plan is intended to minimize damage in the event of any of these scenarios. Server colocation is a service in which the hosting provider rents out server space to clients who place their machines. In this article, we'll go over the Pros and Cons of using this type of service for your company.

What Is Colocation Server Hosting

Server colocation is when a business pays a third-party service to house its servers and devices in its physical data centre. Colocation provides the benefits of a large-scale server operation at a cheaper cost. This is separate from cloud hosting. A data centre colocation service will give your business a secure location to control your server. Consider server colocation to be similar to renting a space in a data centre. You will get the benefits of a data centre without having to run one yourself.

Colocation Server Hosting Pros

Server colocation, the practice of housing a company's servers in a third-party data centre, offers numerous advantages that can significantly enhance the efficiency, security, and scalability of an organization's IT infrastructure. Here is a list of the key pros of server colocation.

  • Reliability and Redundancy

One of the primary benefits of server colocation is the heightened reliability it provides. Reputable data centres boast advanced infrastructure, including redundant power supplies, cooling systems, and network connections. This redundancy minimizes the risk of downtime due to power outages or equipment failures, ensuring a stable environment for critical business operations.

  • Security Enhancements

Server colocation enhances the security posture of businesses. Data centre implement robust physical and cybersecurity measures, including biometric access controls, surveillance systems, and fire suppression systems. This level of security surpasses what many organizations can afford to implement in-house, safeguarding sensitive data from unauthorized access and potential threats.

  • Scalability and Flexibility

Businesses evolve, and so do their IT needs. Server colocation provides the flexibility to scale infrastructure up or down based on demand. This scalability is crucial for companies experiencing growth or those requiring additional resources for specific projects. It eliminates the need for upfront capital investment in building and maintaining a larger in-house data centre.

  • Time and cost savings

You don't have to spend money on a custom-built facility when you share a data centre with other businesses. The facility invests in the best cooling towers, enough security, tailored rack spaces, and uninterrupted power. All of this can be costly for a corporation investing in data centre construction. Several colocation providers offer internal connectivity to make data transmission between servers easier.

  • Network Connectivity

Data centers hosting collocated servers typically offer robust network connectivity with high-speed, redundant internet connections. This ensures fast and reliable access to applications and services, benefiting businesses that rely heavily on a responsive and efficient network infrastructure.

  • Expert Support and Management

Entrusting server management to dedicated professionals is a significant advantage of colocation. Data centre employ skilled technicians who monitor and maintain server health, troubleshoot issues, and implement updates. This allows organizations to focus on their core competencies, leaving the technical intricacies to experts.

  • Geographical Diversity

Colocating servers in multiple data centres across different geographic locations enhances disaster recovery and business continuity strategies. In the event of a regional outage or natural disaster, data can be seamlessly transferred to a different location, minimizing downtime and data loss.

  • Regulatory Compliance

Many industries have stringent data protection regulations. Server colocation providers often adhere to industry-specific compliance standards, such as HIPAA for healthcare or PCI DSS for payment card data. This ensures that businesses can meet regulatory requirements without having to invest extensively in compliance measures themselves.

Cons of Server colocation

While server colocation offers several advantages, it is essential to consider the potential drawbacks and challenges associated with this approach to hosting servers. we'll delve into the cons of server colocation that businesses should weigh carefully.

  • Initial Setup Costs

Despite the long-term cost savings, the initial setup costs of server colocation can be substantial. Businesses must invest in server migration, transportation, and reconfiguration to adapt to the data center environment. This upfront expenditure can pose a barrier, especially for smaller enterprises with limited budgets.

  • Limited Physical Access

Colocating servers means relinquishing direct physical access to the hardware. While data centers provide robust security measures, businesses may face challenges if they require immediate physical access for troubleshooting or hardware upgrades. This limitation can impede the control that organizations have over their infrastructure.

  • Dependency on External Service Providers

Relying on external data centre providers introduces a dependency that can be a double-edged sword. While these providers offer expertise, businesses are at the mercy of their operational practices. Issues such as service outages, maintenance schedules, or changes in provider policies can impact the availability and performance of hosted servers.

  • Bandwidth Costs and Limitations

While data centers typically offer high-speed connectivity, businesses may incur additional costs based on bandwidth usage. High data transfer volumes or unexpected spikes in usage can result in increased expenses. Moreover, some colocation providers impose bandwidth limitations, potentially restricting the scalability of data-intensive applications.

  • Lack of Customization and Control

Colocation facilities standardize their infrastructure to efficiently manage resources. While this streamlines operations, it can limit the level of customization and control that businesses have over their server environment. Organizations with specific hardware requirements may find themselves constrained by the offerings of the colocation provider.

  • Distance and Latency

The physical distance between a business and the colocation data centre can introduce latency, impacting the responsiveness of applications and services. This can be a concern for businesses with real-time or latency-sensitive operations, such as financial trading or video streaming.

  • Maintenance and Upgrades

Server colocation involves shared resources, and any maintenance or upgrades performed by the data center can impact multiple clients. Scheduled maintenance windows may temporarily disrupt services, and businesses must coordinate with the provider to minimize the impact on their operations.

  • Potential Security Risks

While data centers invest heavily in security measures, the sheer scale and complexity of these facilities can introduce security risks. Shared environments may pose vulnerabilities, and businesses must thoroughly vet colocation providers to ensure they meet stringent security standards and comply with industry regulations.

Learn More: Cloud vs Traditional Data Center: What’s the Difference?

Ending Note 

Server colocation is a great option for many businesses as it combines the benefits of data centre infrastructure with complete control over server hardware. However, it may not be the best choice for small organizations or those who want to spend less time managing their hosting. Server colocation is becoming a popular choice for companies that want to balance control over their IT infrastructure while leveraging the resources of specialized data centre providers. The decision should align with the company's long-term goals and operational needs, ensuring smooth integration of technology for long-term growth and innovation.

Consider Buying server Hosting for your Business

Now that you understand the pros and cons of server colocation, it is time to select the best server for your needs. It can be difficult to determine which server is ideal in each situation. Work with the experts at Server Colocation Uk to select the best package for your business. Contact us today to determine a server hosting plan that will meet your business needs.

Colocation FAQs

About Server Colocation UK

Our servers are located in our own data center which is located in Derby, United Kingdom.
The data center is fully owned and managed by Data center plus, giving us the flexibility to work with our customers requirements and provide unrivaled levels of support.

Our data center is located next to Mansfield Road, Derby, UK. We are very accessible.
Our address is: Suite 18, Parker House, Mansfield Road, Derby, DE21 4SZ

Tour of our data center facilities is reserved for customers who are looking for colocation services with Data center plus.
If you would like to visit the data center, we must receive at least 24 hours notice.
You will also require to bring a form of ID in the form of a passport or driving license. We cannot allow anyone into the data center failing these requirements.

If you would like to place an order please contact us directly.
You can contact our sales team directly on 0808 169 7866 or emailing
If you are an existing customer, log in to the site and simply check out after selecting your new service and proceed to payment options. The details of your new service will be added to your account portal.
If you are placing an order that is an upgrade to your existing one, get in touch with your account manager or raise a support ticket at


If you are experiencing issues with your server, we recommend that the first you do is to raise a support ticket with our support team.
This can be done by sending an email to
Alternatively, if the matter is time sensitive, feel free to give us a call on 0808 169 7866 and select the option for Support.
We have a 30 minute SLA response time to any ticket raised.

Remote hands cover requests made within office hours.
Our Remote Hands service covers assistance with the following items:
– Server reboots
– CDROM connect/disconnect
– Cable checks and moving network cables.
– Checking/relaying diagnostics information back to the customer.
If you require services outside of the above (for example, installation of software), we can provide this as part of our Additional Services, which is chargeable. Please contact your account manager or our helpdesk for further information.

Support for hardware failure is 24/7/365 on our Managed Servers.
Most failed hardware components can be replaced within 1 hour (during office hours and subject to parts being in stock.
Office Hours: 08:30 – 18:00

Emergency support work