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Co-Location is when a hosting company has the resources in a data center such as, bandwidth, cooling, power, and physical security that a client does not have himself. So, a client can house his server in the hosting company’s data center for a fee.

The benefits are the redundant power and redundant internet access. Most mid0sized companies do not have the same amenities as a hosting company since it is usually unnecessary and extremely costly.

Another benefit of co-location is 24/7 physical security. Hosting companies have an on-staff IT team to keep the data center running smoothly and to fix any problems that may occur. Many mid-sized businesses do not have this amenity either because of the cost .

Servers become very warm when being run all the time and need to be in a cool environment, if a server overheats it will not run correctly. A hosting company has a data which has the perfect environment for the server to operate correctly and not over heat.

Co-Location as many benefits for a client who does not have the resources to run his server in-house.