Colocation is the Answer

Gartner predicts that by 2025, 80% of enterprises will migrate completely away from on-premises data centers, as workloads continue to shift toward colocation, hosting, and cloud environments.

The Growing Complexity of IT Infrastructure

As organizations become increasingly dependent on their technology stack, driven by AI, big data, and emerging digital platforms, the complexity and cost of managing in-house data centers have become a significant burden.

By turning to a colocation provider, companies can offload the day-to-day management of their infrastructure and refocus their resources on innovation, customer experience, and strategic growth.

Why Colocation Makes Sense

Building and maintaining a private data center is a long-term, capital-intensive investment.
Colocation offers a smarter alternative by providing:

  • Scalability – grow or downsize as business needs change.
  • Flexibility – access multiple environments, from hybrid cloud to edge compute.
  • Connectivity – leverage diverse, high-capacity, low-latency network options.

These capabilities make colocation an ideal choice for organizations that need to meet current performance demands while preparing for future workloads.

Supporting the Edge Computing Revolution

With the rise of edge computing, proximity to data has become crucial. Local colocation providers are uniquely positioned to deliver low-latency connections that support industries like manufacturing, logistics, and healthcare, where processing large data volumes in real time leads to faster insights and a better end-user experience.

The physical edge location is now where people, devices, and data truly connect, bridging the gap between digital infrastructure and real-world interaction.

A Local Example: Datotel’s St. Louis Colocation Edge Advantage

At our St. Louis data center in the Globe Building, we see this transformation firsthand. The region’s rapidly growing geospatial industry relies on edge computing capabilities located within close proximity to high-tech office spaces.

By hosting compute and storage at our colocation facility, and leveraging multi-gig connectivity with ultra-low latency, organizations can manipulate, store, and transmit massive files and datasets efficiently. This proximity and performance deliver a competitive edge that’s redefining how modern enterprises operate.

The Bottom Line

As digital transformation accelerates, colocation provides the performance, reliability, and scalability enterprises need, without the expense and complexity of managing data centers on their own.

Simply put, colocation isn’t just an alternative to on-premises infrastructure, it’s the foundation of the modern digital enterprise.