Agrippa Investments

Agrippa Investments

Key Terms

Colocation

Explanation & Breakdown

Jul 19, 2025
βˆ™ Paid

Short Description

Colocation refers to the practice of renting space, power, and connectivity within a third-party data center, rather than building and operating one’s own. In this model, tenants (usually enterprises, cloud providers, or hyperscalers) deploy their own servers and hardware (like GPUs) inside a facility operated by a colocation provider.

Colocation offers rapid time-to-market, lower up-front costs, and access to premium infrastructure β€” such as cooling, power redundancy, and fiber connectivity β€” without taking on the risks of owning the real estate or building the facility.


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