How colocation works
The operator owns or leases the building and runs the power, cooling and security. Customers bring their own servers. Retail colocation leases small amounts, such as racks or cages. Wholesale colocation leases whole rooms or buildings to larger customers.
Not the same as co-location with generation
The word is also used in power markets for something else: placing a large load next to a power plant. See co-location of load with generation.
What a colocation site needs
Colocation operators need reliable power, strong fiber and sites their customers want to be in. As customer demand grows, they face the same power-first siting questions as hyperscale teams.
Questions people ask
Is colocation the same as cloud?
No. In colocation the customer owns the servers and rents the space and power. In cloud, the provider owns the servers and rents out computing.
Do colocation operators use powered shells?
Some do. An operator may lease a powered shell and fit it out, or build its own facility from the ground up.
Related
More glossary
- What is time to power?
- What is powered land?
- What is a powered shell?
- What is large load interconnection?
- What is a point of interconnection?
- What is an interconnection queue?
- What is queue position?
- What is ERCOT?
Need a site, or have one?
Tell us what you need and Voltane finds, reports on and prices candidate sites in ERCOT. Or bring a site you already have for a path-to-power report (by request for now).