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Last edited 17 Apr 2020
A colocation data centre (or carrier hotel) is an external site that allows organisations to rent equipment and technical support services and equipment from a third party provider. These services are required to support the digital infrastructure demands of the client.
A colocation centre will include the physical premises along with adequate HVAC, power supply (including backup power), cable management infrastructure, bandwidth, fire protection and security. Customers may or may not be required to provide their own storage racks and server equipment.
This business practice first emerged in the US in the late 1990s in conjunction with the growth of the tech bubble. As computing needs increased - particularly with the rapid increase of small dot com companies - organisations were reluctant (or unable) to accommodate technical demands onsite and so offloading those specialised requirements to colocation data centre providers became a popular option.
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