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10 Data Center Colocation Benefits and Indian Business Facilities You Must Know

UPDATED ON

October 17, 2024

Aditi Mishra
Content Marketer

With the advent of the age of digital transformation, data Center colocation is an essential service for businesses desiring to optimise its IT infrastructures. 

As companies grow rapidly in India, colocation is a cost efficient option which is scalable. It offers data center-like security and scalability, without the hassle that’s associated with being a data center.

This blog will explore the top 10 data Center colocation benefits for you and all the must know about colocation facilities located in India. 

So if you’re looking for a tried and true method that guarantees efficiency alongside security, keep reading!

Table of Contents

What is Data Center Colocation?

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Data center colocation is a hosting model wherein companies rent the physical space, power, and cooling from a third party data centre. They can house their own computing equipment, securely, without managing their infrastructure as well. 

This kind of model lets companies keep their IT assets under control while benefiting out of a very secure and solid environment.

To the Indian businesses, it offers an appealing way of meeting scaling demands of their infrastructural needs for e-commerce, finance and IT service sectors if not requiring to own data centers.

10 Data Center Colocation Benefits for Indian Businesses

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Businesses can gain access to a number of noteworthy data center colocation benefits when selecting a data center colocation facilities provider:

1. Significant Cost Savings

It’s expensive to build and maintain a private data center. Power, cooling, physical space, and staffing cost adds up quickly. 

By data center colocation benefits, businesses can have lower capital expenditures as well as move to an OPEX model (operating expenses) and can be more flexible in their budget. 

Data center colocation facilities can deliver savings up to 40% over the total operational costs of the same amount of capacity housed in the company’s own data center, according to a study by 451 Research

2. Physical and Cybersecurity

Businesses which deal with sensitive customer data including finance, healthcare business and so on have big concerns in terms of security. 

Among other things, physical security of a data center colocation facilities has benefits such as 24/7 surveillance and security personnel, even audited biometric access.

In addition these advanced cyber security protections, i.e. firewalls, DDoS mitigation tools remove other physical and digital security threats.

3. Scalable Power & Cooling Infrastructure

Overheating or blackout can bring about severe downtime that has critical negative implications to operations.

Redundant power systems, like UPSs and backup generators, ensure that data centers' colocation facilities remain operational. 

Yet advanced systems such as precision air conditioning and liquid cooling are used to cool the server to the optimal temperature in order to prevent server failures.

4. Scalability for Growing Businesses

Data center colocation is different from traditional local hosting where you need to add hardware and space to grow. This means that businesses can expand their IT services whenever they like and double their capacity with no hassle. 

Thanks to its flexibility, it is a great solution for startups and SMEs wanting to grow fast without the concern of large capital outlays.

5. Greater Uptime & Network Availability

Lost revenue and customer trust is downtime. Because of redundant systems, data center colocation facilities are mainly offered 99.999% uptime SLAs (Service Level Agreements)

This uptime level is extremely important to e-commerce platforms, banking solutions or practically any other field in which any downtime can have a severe impact on its operations.

6. 24/7 Technical Support & Monitoring Services

It gives businesses the time to focus on what they do best and leaves the data center colocation benefits provider to handle the audits, emergency response and optimizations. 

The data center infrastructure is looked after by a dedicated team of experts who manage and maintain the data center infrastructure so that it’s there running efficiently and is not causing any business disruptions.

7. Faster Disaster Recovery & Business Continuity

Data center colocation benefits for Indian businesses, especially in disaster prone areas, can reap great dividends from colocation services that come with a built in disaster recovery (DR) solution. 

Hosting critical systems offsite in a secure facility allows businesses to quickly recover and to keep operating during emergencies ranging from floods, fires and cyber attacks.

8. Increased Connectivity & Latency

Access to high speed internet and low latency connections to the major US based interconnects and carriers is provided at strategic data center colocation facilities. 

This helps smooth transfer of data and provides the best application performance, in particular, in the fields of media, gaming and so on; it is necessary for real time processing.

9. Regulatory Compliance

Indian Businesses have to meet local regulations such as IT Act 2000 and global standards such as PCI DSS and ISO 27001. 

These standards are followed by leading data center colocation facilities provider and it is therefore easier for businesses to comply with these compliance requirements without incurring huge penalties.

10. Eco-Friendly Solutions

Many data center colocation benefits providers are adopting green initiatives which include the use of renewable energy sources and the optimum cooling system. 

It enables companies to cut their carbon footprint and continue to be operationally efficient.

10 Key Data Center Colocation Facilities in India

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Indian data center colocation benefits provide a collection of facilities that help maximize performance and security. Here’s a look at the most critical ones:

1. Customizable Space & Rack Units

Flexible options include room alternatives to single server rack places to complete dedicated rooms offered by data center colocation benefits providers. 

You have the ability to select how much space you need, and that means you’re not paying for unused capacity. For enterprises that need to stay flexible this is perfect.

2. Advanced Cooling Technology

Servers overheat a lot, so they need to be cooled down. 

Hot aisle/cold aisle configurations, liquid cooling, and chilled water cooling systems are used in India for your data center colocation to run efficiently at any load.

3. Redundant Power Systems

Uptime is critical to the operation and we have power redundancy in place for that. 

On the other hand, Indian data center colocation facilities offer two power feeds, a UPS system, and a back up generator which even when the grid fails, will maintain constant power.

4. High Speed Internet Connection

Good data center colocation facilities provide multiple Tier 1 Internet connections and Peering with the top Internet providers to offer fast, reliable, and redundant network connections.

Especially for businesses that handle global clients, the data transfer speed and latency has to be blazing fast.

5. High-Level Physical Security

Security is Indian data centers colocation facilities’ number one priority, with 24/7 CCTV surveillance, biometric access control, as well as on site security officers. 

This will keep your physical assets secured from being accessed by anyone unauthorised.

6. DDoS Protection & Firewalls

With the sharp increase in cases of cyberattacks, Indian data center colocation facilities' also include DDoS protection and the next generation of firewalls in their services.

These security features help businesses fight increasingly sophisticated cyber threats.

7. Fire Suppression Systems

High-end fire suppression systems are used by most data center colocation facilities as a precaution against fire. 

These do not destroy your equipment the way sprinklers would, but rather possibly fill the room with gas to extinguish all flames, which then penetrate all surfaces and suffocate the fire, thereby preventing damage from water.

8. Remote Hands Service

Data center colocation facilities also provide remote hands services when you can’t be on site. 

Your team can concentrate on the core business activities while trained technicians perform routine tasks, like installations, servers reboot and troubleshooting them.

9. Adherence to Industry Standards

Examples of certifications that show that data center colocation benefits providers adhere to certain strict compliance standards are SOC 2, PCI-DSS, and ISO 27001.

In businesses pertaining to banking or healthcare, it is particularly crucial when handling sensitive data.

10. Energy Efficiency & Green Initiatives

Many suppliers of data center colocation facilities in India are emphasizing energy efficiency through the use of renewable energy sources and cutting-edge cooling systems.

This meets corporate social responsibility (CSR) goals in addition to cutting costs.

Data Center Colocation in India: Affordable, Scalable, Secure

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Data center colocation is becoming increasingly popular with Indian businesses who rely on the need for affordable, secure and scalable IT infrastructure. 

Whatever the startup or established enterprise, the cost savings, high security, and scalability that colocation provides is a smart choice.

Conclusion: Is Data Center Colocation the Best Choice for Your Indian Business?

Indian businesses derive a multitude of benefits, both in terms of cost savings, robust security, scalability and reliable infrastructure, among several others, by relying on data center colocation facilities and data center colocation benefits. 

Colocation is a future proof solution that will support your digital transformation with disaster recovery solutions, whether you're an SME looking to scale or a large enterprise.

It’s the right time to learn about colocation for your business and use the quality of India’s data center growth to benefit from the world class facilities and experience this industry has to offer.

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written by :
Aditi Mishra

I am Aditi Mishra, a multifaceted professional who seamlessly intertwines my roles as a writer and lawyer. I am leveraging my extensive experience across diverse sectors. With a keen eye for detail, I navigate the intricacies of financial, real estate, and tech landscapes, providing invaluable insights through my writeups.

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