What is a Colocation Data Center?

Colocation Data Center Defined

The colocation data center is a type of service where organizations can rent out space in a data center facility to house their IT infrastructure. These facilities provide the power, cooling, and network connectivity that companies require to operate their servers, storage devices, and applications. Colocation services allow companies to reduce costs and avoid the hassle of building and maintaining their data center facilities.

One of the primary benefits of colocation is the high level of security that these data centers provide. Modern data centers have advanced physical security measures such as closed-circuit cameras, biometric access controls, and 24/7 staff presence. These security features provide companies with peace of mind, knowing that their valuable data and infrastructure are properly protected.

Another benefit of colocation data centers is their high level of reliability. Colocation data centers have multiple levels of redundancy built-in, ensuring that companies can access their data and applications at any time. These centers have backup power systems, multiple internet service providers, and redundant cooling systems to avoid downtime and disruptions.

Colocation data centers also offer improved flexibility, scalability, and agility for businesses. Companies that require additional space, power, or connectivity can easily scale up their operations without having to invest in new data center infrastructures. This flexibility enables organizations to focus on their core business functions and avoid the hassles and costs of managing their data centers.

Finally, colocation data centers offer cost savings and improved energy efficiency for organizations. Renting space in a data center and sharing the infrastructure with other companies reduces the overall costs of building and maintaining a data center facility. Additionally, many colocation data centers are designed to be energy-efficient, reducing their carbon footprint and operating costs.

Types of Colocation Data Centers

There are primarily two types of colocation facilities: retail colocation and wholesale colocation.

Retail Colocation is the most common type of colocation service. In retail colocation, organizations rent out specific racks or cabinets within a data center to store their servers and other equipment. This type of service is ideal for small to medium-sized businesses that require a secure and reliable environment for their IT infrastructure but don’t have the needs or resources to rent out an entire data center.

Wholesale Colocation, on the other hand, is where an organization rents out a large, dedicated portion of a data center or even an entire data center. This type of service is typically used by large enterprises or cloud service providers that require a significant amount of space, power, and network connectivity. Wholesale colocation allows these organizations to have more control over their environment and can be more cost-effective when operating at scale.

However, the choice between retail and wholesale colocation depends on the specific requirements of an organization. Factors such as cost, scalability, control, and the amount of IT infrastructure to be housed can influence the decision. It’s essential for enterprises to thoroughly analyze their current and future data requirements before choosing the type of colocation facility to employ.

Uptime Institute Data Center Tiering Levels

The Uptime Institute has developed a tiering system that categorizes colocation data centers based on their infrastructure performance, reliability and redundancy. This system consists of four levels known as Tier I, II, III and IV.

Tier I data centers are the most basic and offer the least amount of redundancy and reliability. They have a single path for power and cooling distribution, with no redundant components, making them vulnerable to disruptions and outages.

Tier II data centers offer an increased level of reliability compared to Tier I. They include some redundant components, such as power and cooling distribution paths, which reduce the risk of a complete system failure.

Tier III data centers, often chosen by businesses that can’t afford any downtime, have multiple power and cooling distribution paths, with only one active. This means that in the event of a component failure, a backup component takes over, ensuring the continuous operation of the system.

Tier IV data centers, often referred to as the “top of the line”, offer the highest level of reliability, redundancy, and fault tolerance. They have multiple active power and cooling distribution paths, which ensure that the data center will continue to operate even if a component fails or routine maintenance is required.

The Uptime Institute’s data center tiering levels provide a standardized measurement system that helps organizations assess the reliability and performance capabilities of their current data center or a potential colocation facility. Organizations must understand these tiering levels to make informed decisions about their data center needs and to ensure their IT infrastructure is resilient, reliable, and capable of supporting their mission-critical operations.

Top Colocation Data Center Providers

Let’s now discuss some of the leading providers in the colocation data center market, renowned for their scale, reliability, and innovative services.

Equinix: The largest colocation provider in terms of revenue and market share. Equinix has over 240 data centers in 71 cities and 27 countries, serving more than 10,000 customers. It offers colocation services with various power and space options, as well as interconnection services through its Equinix Fabric platform.

Digital Realty/Interxion: This company is the result of a merger between Digital Realty and Interxion in 2020. It operates over 290 data centers across 24 countries and regions, serving more than 4,000 customers. It offers a range of colocation solutions, from cabinets and cages to suites and pods, as well as interconnection services through its PlatformDIGITAL platform

NTT Global Data Centers: A subsidiary of NTT Communications, NTT Global Data Centers operates over 160 data centers in more than 20 countries and regions, serving more than 4,000 customers. It offers colocation services with flexible power and space options, as well as interconnection services through its Nexcenter Connect platform.

CyrusOne: One of the fastest-growing colocation providers in the world, CyrusOne operates over 50 data centers in 15 markets across four continents, serving more than 1,000 customers. It offers colocation services with various power and space options, as well as interconnection services through its CyrusOne IX platform.

Each of these providers offer unique advantages and services. When choosing a colocation provider, organizations should consider factors such as location, scalability, support services, compliance standards, and of course, cost.

Why Do Colocation Facilities Use DCIM Software?

For Colocation Data Center Operators

Data Center Infrastructure Management (DCIM) software is vital in colocation facilities. It offers operators a comprehensive view of a data center’s performance, enabling efficient management, planning, and monitoring of all facilities and IT infrastructure.

DCIM software also boosts operational efficiency through real-time monitoring of power usage, environmental conditions, and performance. It enables predictive maintenance, supports scalability, and enhances security in data centers.

For Colocation Tenants

DCIM software can also significantly benefit colocation tenants in managing their infrastructure more effectively. One of the primary advantages is the visibility it provides into real-time and historical data about power, cooling, and space utilization. This granular insight can aid tenants in optimizing their equipment placement and energy use, thereby helping to reduce costs and enhance performance.

Moreover, colocation tenants can use DCIM software to streamline capacity planning, enhance operational reliability, and help meet compliance requirements in colocation data centers. It provides improved visibility, predictive maintenance, and automated reporting, making it a powerful tool for effective infrastructure management.

Conclusion

Colocation data centers present a cost-effective and energy-efficient solution for businesses to house their IT infrastructure. With the option to choose between retail and wholesale colocation, organizations can select a service that best fits their specific needs and resources. The Uptime Institute’s tiering system offers a clear and standardized measure of a data center’s reliability and performance, assisting organizations in making informed decisions about their data center needs. Lastly, DCIM software plays a crucial role in both operators and tenants, offering real-time monitoring, predictive maintenance, and improved operational efficiency. Therefore, understanding these aspects is vital for any organization seeking to optimize its data center strategy and operations.

Find out why cloud-based DCIM software is future-proof. Schedule a free one-on-one demo of Hyperview today.