There are many reasons why colocated data centers are good for a variety of businesses. The most prominent reason though is that they save money through a variety of different factors. Colocation data centers can boost clients’ profits significantly by: reducing energy costs, requiring less staffing, location flexibility, low upfront costs, and a reduction in overall downtime recovery.

First off though, if you are new to the idea of colocation data centers, these are outsourced managed centers that house various business’ data in large, secure servers in optimal temperature environments. They are a common solution many companies rely on everyday. But why do they work so well to reduce the costs of data storage versus an on-premise data center owned and run by an individual company? 

Reduce Energy/Utility Costs

For many businesses that require data storage, this can quickly grow beyond what they are capable of housing on their own. According to data from Iron Mountain, the power and cooling required to efficiently run a data center can account for 70% to 80% of a business’ overall running costs.

Cooling and powering servers is incredibly expensive, but colocated data centers help alleviate this cost from your business by extending their wholesale prices on utilities to you as their customer. Your data is stored securely and in optimal conditions, saving space and a significant percentage of high utility bills incurred when storing data in another way. 

Less staff

Having onsite staff to monitor, manage and repair onsite servers is expensive! By moving your data to a colocated data center, businesses dodge this expense and outsources the workload of data storage to the experts.

Most IT departments and staff aren’t always knowledgeable about server management –  It requires a separate set of skills in addition to extra time out of the workday. Colocation America notes that IT departments’ biggest headaches are usually when they have to maintain a data center on top of their regular work.

You can’t afford to have IT overworked and too busy with server maintenance to notice security threats or other issues that need fixing so the rest of the business can continue uninterrupted. 


Generally speaking, space is at a premium in most office spaces so data servers taking up significant space is a problem.

However, Even aside from the physical space needed to house a large amount of data, you want your data to be stored as close as possible to where it’s needed. Working through a colocated data center allows you to find a preexisting data center in the right location, and save that money rather than building, purchasing, or leasing the space to store data yourself in the right spot geographically. 

Lower Upfront Costs

Storing your own data is a massive expense if you’re going to do it right. Purchasing or renting space, hiring the right team to manage the data, ensuring security measures are in place, etc. It all costs a lot of money, and it’s all money that you’ll spend up front as you’re setting up your data storage. 

When you opt for a colocated data center, you pay a monthly or yearly fee, but everything else is wrapped up into that price. The lower upfront costs allow you to protect your cash flow and put those resources where your business needs them right now or save money, rather than tie them up in an elaborate data storage center with astronomical start-up costs. 

Lower Downtime Recovery

Colocated data centers have extensive protocols in place and state-of-the-art technology to ensure a company’s access to its data is always quick and secure.

When downtime does occur, it is estimated to cost businesses up to $8,000 per minute according to Iron Mountain. That’s potentially disastrous for businesses, especially small one. This likely will never happen if your data is in a colocated data center. 

According to The Windsor Group, security breaches are a minimal risk for colocated data centers and they can actually help strengthen a company’s security protocols and user standards to ensure heightened protection of their sensitive data.


Whether you’re in the market for a collocated data center across the country or right here in Oklahoma, you’ll quickly discover that there are immense savings to be had when using a colocated data center versus attempting to create your own data storage setup from scratch. 

Learn more about colocation versus on-premise data centers here