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Colocation

Colocation solutions help organizations house their IT infrastructure in secure, reliable, and scalable data centers.

Colocation provides enterprises with access to robust power, cooling, and network connectivity without the capital expenditure of building and maintaining their own facilities. This allows businesses to focus on their core competencies while ensuring optimal performance and security for their critical applications and data.

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The challenge

Your organization faces escalating costs and risks associated with managing on-premises infrastructure. Downtime penalties, power scarcity, and physical limitations of older buildings create significant challenges. Maintaining legacy data centers requires substantial capital expenditure, diverting resources from core business innovation. Compliance and regulatory requirements add further complexity. Without a modern colocation strategy, your organization risks falling behind competitors and struggling to support the demands of AI and high-performance computing.

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41% of large enterprises report downtime costs exceed $1M per hour
$23.75K is the average cost per minute of downtime for large enterprises
4 years is the grid connection wait time in Tier 1 markets

The solution

Colocation addresses your unique challenges through modern solutions and key capabilities.

Infrastructure scalability

Colocation provides scalable rack space, power, and cooling, allowing organizations to easily adjust resources as needed to support growth and changing demands.

Carrier neutrality

Access to a diverse range of ISPs and telecommunications carriers ensures optimal network connectivity and reduces reliance on a single provider.

Enhanced security

Colocation facilities offer robust physical security measures, including perimeter fencing, biometric scanners, and 24/7 on-site security personnel, protecting critical infrastructure from unauthorized access.

AI readiness

Modern colocation providers offer high-density infrastructure and advanced cooling solutions, such as liquid cooling, to support power-intensive AI workloads.

Advanced monitoring

Comprehensive monitoring and reporting tools provide real-time visibility into power usage, environmental conditions, and network performance, enabling proactive issue resolution.

Global reach

Colocation enables rapid expansion into new geographic markets without the lead time required for building new facilities.

See how colocation suppliers stack up

Our Palomarr Insights chart shows the full landscape of colocation solutions.

  • See how companies stack up against each other
  • Get a detailed breakdown of each supplier
  • Compare 40 suppliers
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Capabilities Innovation

How to evaluate colocation

1

Uptime guarantee

Evaluate the provider's ability to guarantee uptime through redundant power, cooling, and network infrastructure. Look for providers offering "Five Nines" (99.999%) uptime.

2

Power density

Assess the provider's ability to support current and future power density requirements. Ensure the facility can accommodate high-density racks needed for AI workloads.

3

Security measures

Verify the provider has robust physical security measures, including biometric access control, 24/7 surveillance, and on-site security personnel.

4

Financial stability

Ensure the provider has the financial resources to complete expansion projects and maintain service levels. Review their financial statements and market position.

Questions to ask suppliers

Use these questions during supplier evaluations to ensure you're choosing the right partner for your needs.

Colocation RFP guide
  • How does your facility support high-density deployments and liquid cooling?
  • What certifications do you hold to ensure compliance with industry regulations?
  • What is your typical response time for remote hands requests?
  • Can you provide detailed reporting on power usage and environmental impact?