Rent space for your own servers in the provider's data center.
Colocation is a space rental service: the customer owns the server, the provider rents space within a rack, including power, cooling, network connectivity, and physical security.
The unit of measurement is typically in U (one U is approximately 4.45 cm high), or by full Rack. Three factors determine pricing beyond space: committed power consumption, Bandwidth and IP address.
Colocation is appropriate when an Enterprise has already invested in Hardware and wants to maximize its Lifecycle, or when there is a requirement to own equipment. Hidden costs must be factored in: travel for Maintenance, redundancy equipment, and staff who know how to operate in the Data center.
