Colocation is a service in which a company will connect a server that you own to the internet. If you do not already have one, some companies offer to build a server for you. This is the key difference between dedicated servers and colocated servers.
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.
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