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A colocation centre ("colo") or carrier hotel is a type of data center where [a] multiple telecommunications or network service providers locate their connections adjacent at the physical layer to each other's networks (points of presence) and [b] users of these services locate network, server and storage gear and interconnect to network service provider(s) with a minimum of cost and complexity.

Increasingly organizations are recognizing the benefits of colocating their mission-critical equipment within a data centre. Colocation is becoming popular because of the time and cost savings a company can realize as result of using shared data centre infrastructure. Significant benefits of scale (large power and mechancial systems) result in large centers, typically 50,000 to 100,000 feet. Cheap Web Hosting.