How to Buy a Colocated Server: A Complete Guide for Businesses in 2025

In today's data-driven world, companies require reliable, scalable, and secure hosting solutions. One option gaining popularity is server colocation. If you're planning to buy a colocated server, this guide will walk you through everything you need to know, from the basics to choosing the right provider.

What is a Colocated Server?

A colocated server is a physical server that you own but place in a third-party data center. Instead of keeping your server in-house, you rent space—known as a rack or cabinet—in a colocation facility. The data center provides infrastructure like power, cooling, internet bandwidth, and physical security, while you retain ownership and control of your server hardware.

Why Choose Server Colocation?

There are several reasons businesses opt for colocation:

Cost-Efficiency: Colocation can be more cost-effective than hosting your server in-house, especially when you factor in the infrastructure and maintenance costs.

Improved Reliability: Colocation centers offer high uptime SLAs (Service Level Agreements), redundant power supplies, and faster internet connections.

Security: Professional facilities have 24/7 monitoring, biometric access controls, and fire suppression systems.

Scalability: You can upgrade hardware or add more servers without investing in physical office space or infrastructure.

Step-by-Step Guide to Buying a Colocated Server

1. Define Your Requirements

Start by assessing your business needs:

• What applications will run on the server?

• How much storage and RAM do you need?

• What operating system will you use?

• Do you need single or multiple servers?

This will help you determine whether to buy a new server or colocate an existing one.

2. Purchase or Prepare Your Server

If you don’t already own a server, you’ll need to purchase one that meets the requirements identified. Look for:

1. Enterprise-grade hardware

2. Support for remote management (IPMI/iLO/DRAC)

3. Adequate cooling and power efficiency

Make sure your server is rack-mountable and compatible with standard data center specifications.

3. Choose a Colocation Facility

Not all data centers are created equal. Here’s what to look for:

1. Location: Choose a data center close to your business if you need physical access.
2. Uptime Guarantee: Look for at least 99.9% uptime SLA.
3. Bandwidth: Make sure they offer scalable and redundant internet connections.
4. Support: Check if they offer hands-on support, especially if you cannot access the server frequently.
5. Security: Ensure they offer round-the-clock physical and network security.

Popular colocation providers include Equinix, Digital Realty, and regional data centers that offer competitive rates.

4. Install and Configure Your Server

Before delivery, configure your server with all necessary software, security settings, and remote access tools. This might include:

1. Operating system installation

2. Firewall configuration

3. Remote access (SSH, RDP)

4. Monitoring tools

Once ready, transport your server to the colocation facility or ship it if allowed.

5. Setup at the Data Center

At the data center:

• A technician will rack your server.

• Connect power and network cables.

• Test connectivity and ensure it’s online.

You’ll usually get an IP address, login credentials for the management portal, and bandwidth monitoring tools.

Maintenance and Monitoring

After your colocated server is operational, you'll need to:

• Monitor performance regularly

• Patch software and firmware

• Respond to any alerts or downtime

• Plan for hardware upgrades or replacements

Most colocation centers offer “remote hands” services—where technicians perform tasks on your behalf—for an additional fee.

Pros and Cons of Colocated Servers

Pros:

• Full control over hardware and configuration

• Better performance and security than shared hosting

• Lower long-term costs than cloud hosting for stable workloads

Cons:

• High upfront cost to buy server hardware

• Technical expertise required

• Limited flexibility compared to cloud

• Conclusion

Buying a colocated server is an excellent investment for businesses that need control, performance, and security. By understanding your needs, selecting the right hardware, and partnering with a reliable colocation provider, you can build a robust hosting solution that grows with your business.

Whether you’re a startup scaling up or an enterprise seeking a cost-efficient hosting model, colocation offers a future-proof path that balances ownership with reliability.