What is Colocation Center?

In computing terms, colocation hosting refers to housing your data servers externally in a third party location.  This colocation service provider provides the physical space, cooling, power, bandwidth and security while the customer provides for the servers and allied hardware. 

Colocation hosting offers the advantages of economies of scale, greater bandwidth, advanced infrastructure, low latency, round the clock technical support and other specialist services and systems.

Businesses generally deploy servers and devices off-site within an ISP data center in colocation. This allows IT staff to maintain physical control over the infrastructure. Colocation is thus used to leverage data center and network technologies alongside the expertise of hosting an ISP.

(source: Wikipedia)