Understanding Colocation Hosting: Why Businesses Choose Datotel

For many organizations, servers are mission-critical. But keeping them running in an office closet or small server room often means battling unreliable power, limited cooling, or spotty internet. As businesses grow, so does the risk of downtime.

That’s why more companies are turning to colocation hosting. Instead of managing servers in-house, you place your equipment in a secure, professionally managed facility like Datotel’s. You still own and control the hardware, but we provide the space, power, network, and security to keep it performing at its best.

Every company’s needs are unique, but several themes come up time and again when clients come to Datotel:

  • Infrastructure without the overhead – Access redundant power, enterprise-grade cooling, and high-speed connectivity without building your own data center.
  • Customization and control – Since you own the hardware, you decide on processors, memory, storage, and configurations that fit your exact workloads.
  • Compliance-ready environments – From HIPAA to PCI DSS, colocating in a facility designed for security and compliance gives organizations confidence.
  • Reliable connectivity – With direct connections to major internet backbones, colocated servers enjoy bandwidth and uptime far beyond what office internet can provide.

Colocation makes sense across industries, but some of the most common use cases we see include:

  • Specialized systems – Businesses running proprietary or hardware-dependent applications.
  • Regulated industries – Healthcare, finance, and government organizations that require physical control of infrastructure.
  • Disaster recovery – Companies hosting backup servers in our St. Louis data center to ensure continuity if their primary site goes down.

Colocation is a powerful solution, but it also requires the right planning. Because you own the hardware, maintenance and upgrades are your responsibility. Datotel provides “remote hands” support when you need physical assistance, but the long-term strategy for your equipment is in your hands.

It’s also important to consider costs. Colocation has two components:

  • The upfront investment in your servers.
  • The ongoing monthly fee for rack space, power, and bandwidth.

For stable workloads, this model often provides better long-term value than renting infrastructure that doesn’t match your exact needs.

Plenty of providers can lease you rack space. What sets Datotel apart is the way we partner with our clients.

  • 24/7 on-site expertise – Our team is always available when equipment needs attention.
  • Regional presence with national reachOur St. Louis data center is strategically located and designed to support both local and national businesses.
  • Customer-first approach – We’re more than a landlord for your servers; we’re a partner in building resilient infrastructure.

Colocation hosting isn’t just about where your servers live, it’s about how your business operates. By combining your hardware with Datotel’s enterprise-grade environment, you gain control, performance, and reliability without the burden of managing a facility.

For businesses that want the freedom to innovate while knowing their infrastructure is secure, compliant, and always available, colocation with Datotel is a smart, long-term choice.