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How to get started with colocation in 2025

img blog How to get started with colocation in 2025

With the tech demands on businesses increasing exponentially, having a robust and efficient IT infrastructure is more crucial than ever. Unfortunately, such an infrastructure can be expensive to install, maintain, and upgrade. Enter colocation — an innovative solution designed to meet the growing tech needs of modern businesses.  

This guide covers the basics of colocation, why it’s worth considering for the coming year, and the key steps to get started, helping you make smart decisions and optimize your IT investments.

What is colocation?

Colocation is a service wherein businesses rent space in a third party’s data center to house their servers and IT equipment securely. Instead of maintaining hardware on their premises, companies leverage the colocation provider’s facilities, which offer secure, climate-controlled environments with reliable power, cooling, and network connectivity.

With colocation, businesses can concentrate resources on their core operations while benefiting from enhanced security, improved performance, and significant cost savings compared to managing infrastructure in house.

Why consider colocation in 2025?

Now more than ever, colocation matters due to the following reasons:

  • Rising data demands: As businesses handle more data than ever, colocation offers the scalability to grow without the massive costs of building and maintaining on-site data centers.
  • Remote work trends: Colocation makes it easier for companies to support consistent, high-performance IT systems for remote and hybrid teams.
  • Energy efficiency: By connecting their hardware to the colocation facility’s optimized power supply, businesses can reduce operational costs and support sustainability goals.
  • Enhanced security: Modern colocation facilities offer advanced physical and cybersecurity measures, ensuring data is well protected against breaches or disasters.
  • More robust network choices. Colocation providers typically have multiple internet providers available at their facility and use diverse providers in their “house” internet provided to customers. Individual businesses could not match the value provided by colocation.

How can I prepare my business for colocation?

Getting started with colocation requires careful planning to guarantee a smooth transition. Here are the essential steps:

1. Evaluate your IT needs

Before making the move, assess your current infrastructure. How much space will your servers require? What are the specific power and cooling needs for your equipment? Consider your growth projections to ensure any potential colocation facility can accommodate your business over time.

2. Choose the right provider

Not all colocation providers are the same. Look for a facility that meets your specific needs, including:

  • Proximity to your business for easy access
  • Strong uptime guarantees and service level agreements (SLAs)
  • Compliance with industry standards such as SOC 2 or HIPAA, if applicable

3. Plan your budget

It’s important to understand the full scope of costs associated with colocation. Monthly fees will cover space, power, and bandwidth usage, but you should also consider any additional charges for services such as remote hands, enhanced security, or backup solutions. These costs can vary based on the provider and the level of service you require, so make sure to factor them into your overall IT budget. Proper budget planning will help avoid unexpected expenses and make sure the colocation solution aligns with your financial goals.

What is the process for migrating to colocation?

Once you’ve selected your provider and planned your budget, the next step is migrating your IT infrastructure to the colocation facility. A successful migration should minimize the disruption to your business operations. The following approach can help you achieve a smooth migration: 

Plan the migration process

A clear migration plan is essential. Start by identifying which servers and equipment will be moved and determine the timeline for each phase. Consider the best time to migrate to avoid peak business hours and verify that all systems are properly backed up beforehand.

Coordinate with your colocation provider

Work closely with the colocation provider to schedule the move. Many providers offer services to help with the migration, including physical transport of equipment and installation at the new facility. They can also assist with tasks such as power-up testing to check that everything is functioning correctly once installed.

Test and verify your systems

Once your servers are in place, thoroughly test all systems to confirm they’re fully operational. Check that network connections are stable and data is both accessible and secure. Resolve any issues quickly to reduce the chance of downtime.

Ongoing maintenance and management 

After migrating your equipment to the colocation facility, you need to manage and maintain your hardware properly to ensure smooth operations. Here are some tips for maintaining a reliable colocation setup:

  • Monitor performance regularly: Monitor server and network performance regularly (both yours and any provided by the facility) to catch issues early. Set up alerts so you can immediately respond to any potential problems.
  • Set up regular backups: Have a reliable backup system in place to safeguard your data. While many providers offer backup services, consider additional off-site or cloud backups for extra security.
  • Stay on top of security: Adopt strong cybersecurity practices, including strict access controls and regular software updates. Collaborate with your provider to keep your systems aligned with the latest security standards.

As you embark on this transition, remember that the right support and proactive management will help ensure your systems continue to perform at their best. For any questions or assistance, Liberty Center One is here to guide you through every step of your colocation journey.

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