Colocation
Colocation (colo) is a data center service where businesses rent physical space, power, cooling, and network connectivity to house their own servers and computing hardware — maintaining control over their infrastructure while leveraging the data center's facilities and redundancy.
Colocation sits between running your own on-premises data center and using public cloud (AWS, Azure, GCP). Companies choose colo when they need the control and economics of owning their hardware but don't want to build and maintain the physical facility, power infrastructure, and network connectivity themselves.
The colocation market has been fundamentally reshaped by AI workloads. GPU clusters for training and inference require significantly more power density (30-50+ kW per rack vs. traditional 5-10 kW), liquid cooling capabilities, and reliable power availability. This has created severe capacity constraints in major markets, with wait times of 12-18 months for new high-density deployments.
Key evaluation criteria for colocation include: power availability and density, interconnection options, contract terms, SLA commitments, and physical security and compliance certifications (SOC 2, HIPAA, PCI DSS).
Need help with infrastructure & energy?
Rebar brings 20+ years of operator experience to help you navigate these decisions. No pitch deck required.
Talk to Us