Colocation Services: What to Check Before Choosing a Data Center
Colocation services give businesses a place to keep their servers without having to build and run their own data center. But a rack and a power connection are not enough for every business. As IT needs grow, businesses also need reliable network connections, enough power, good backup systems, and room for more equipment. The need for data center space is also growing. JLL’s 2026 Global Data Center Market Outlook expects global data center capacity to almost double between 2026 and 2030. At the same time, finding enough power for new data centers is becoming harder. JLL also explains more about these changes. If you already know how colocation works, it is more useful to look at what you should check before choosing a facility. How does colocation work? Colocation services let a business put its servers and other IT equipment in a data center that is run by another company. The data center usually takes care of: Your business still owns and manages its servers, software, and data. You are basically using the data center’s building and supporting systems while keeping control of your own equipment. That sounds simple, but the details can make a big difference. The right facility should be able to support your setup now and give you enough room to grow later. Why is power capacity important? Power capacity matters because newer IT equipment can use much more electricity than older systems. This makes power an important point to check when comparing colocation services. AI and other high-performance workloads are pushing this need even further. Uptime Institute’s 2026 Global Data Center Survey found that more data center operators are seeing racks that use 30 kW or more of power.The same survey also shows how rack power needs are changing. So, what should you ask about? Having an empty rack does not help much if the facility cannot give you enough power to run your equipment. Why does network connectivity matter? Network connectivity matters because your servers still need to communicate with the outside world after they move into the data center. This makes connectivity a key part of colocation services. Your servers may need to connect to your offices, customers, cloud platforms, or other data centers. Having several network providers gives you more choices and means you do not have to depend on just one provider. The path that the connection takes also matters. Two connections may look like separate backups, but they could still travel through the same fiber route outside the facility. That can create a problem. If something damages that shared route, both connections could be affected. Uptime Institute’s 2026 outage research found that fiber and other outside connection problems are becoming a more common cause of longer service disruptions. Uptime Institute’s 2026 Annual Outage Analysis provides more details. When comparing colocation services, it is therefore worth asking not only what connections are available, but also how those connections reach your other locations. How can colocation support future growth? Colocation services can make growth easier when a facility has enough space, power, and network capacity for you to add more equipment later. This matters because finding available data center space is becoming harder. CBRE reported that availability across major Asia-Pacific data center markets fell 43% year over year in Q1 2026 as demand from AI and cloud services continued to grow. CBRE’s Global Data Center Trends 2026 covers the latest market changes. Before choosing colocation services, it helps to ask: It is easier to plan for growth before you need it. Moving servers to another facility can take much more time and money than expanding where you already are. Why does location matter? Location matters because your data center needs good connections to the people, businesses, and networks that use your services. This makes location an important part of choosing colocation services. Being close to your office may not be the most important thing. A data center with access to several network providers, cloud services, other data centers, and major business areas may be a better fit. The location of new data centers is also changing. CBRE’s 2026 research points to Johor and Batam as growing data center markets because of their access to land and power. For businesses operating across Southeast Asia, choosing the right location can make it easier to connect offices, customers, and other data centers. What should you check beyond the rack price? You should look at the full cost of colocation services because the monthly rack fee is only part of the bill. You may also pay for: Uptime Institute’s 2026 survey found that high costs remain the top concern for digital infrastructure teams. Power and future capacity are also becoming bigger concerns. A lower rack price may look attractive at first, but it may not be the cheaper option once these extra costs are added. Looking at the full cost can give you a better idea of what you will actually spend. How does connectivity fit into colocation? Connectivity links the equipment inside a colocation facility to the rest of the business. For many colocation services setups, that connection is just as important as the rack itself. For businesses that need dedicated connections between data centers, offices, and other locations, dark fiber can be one option. Businesses can use dedicated fiber and choose the equipment used to run it. ARNet’s dark fiber infrastructure provides dedicated fiber connections across Southeast Asia, connecting data centers, cable landing points, and other key infrastructure through diverse network routes. ARNet’s network covers Thailand, Malaysia, Singapore, and Indonesia, with routes connecting key business and data center locations across the region. You can see the available routes on ARNet’s network coverage page. For businesses planning colocation services and network infrastructure at the same time, ARNet’s dark fiber solutions can support data center connections, regional links, and dedicated fiber routes. Choosing colocation for long-term needs Choosing colocation services is about more than finding an empty rack. You need to think about power, network connections,