What is Colocation?
Colocation is the concept of hiring out space and equipment to other companies. Simply put, it is the placement of an organization's servers into a host company’s data centre. These colocation facilities, otherwise known as ‘carrier hotels’, are becoming increasingly popular and are allowing companies to rent out space and equipment in order to save money in the long run.
It’s no surprise that the cost of buying your own data centre facility can be astronomical, this is why colocation centres have become so popular in recent years. Not only do these centres save you money and space, they also already have their own onsite team of professionals. Thus meaning that companies who use them do not need to hire as many staff members as they once did, as any technical issues can be dealt with by the facilities own hired staff.
In recent years, more and more companies have found it difficult to acquire data centres and the needed facilities within a close geographical radius. However, the use of colocation offers companies geographical flexibility, making it easier to find a carrier hotel as close as geographically possible to their headquarters.
Host companies can provide physical security, uninterrupted power, disaster mitigation, high speed internet and enterprise heating and cooling. These host companies also carry in depth knowledge of the maintenance of data centres and resource provision, making them experts in the field. Having this onsite knowledge and maintained facilities, means companies who are willing to rent out space will avoid the cost of investments and expensive high end data centre infrastructure.
How does colocation work?
Although companies looking to go down the colocation route do not need to invest in their own data centre, they do still need to invest in their own server hardware and software. Before this is installed into the host facility, the company must also set up and configure their server so that it meets the needs and demands of their business.
Once everything is set up the server will be installed into the hosting facility where the host company will then handle everything down to the housing demands.
With the data centre market expanding and changing everyday, it is believed that the industry will only continue to grow and innovate with new revolutionary technologies. Therefore, we can expect to see the use and demand for colocation to continue to rise as it is now undoubtedly a strong feature within the industry.
GTR and SEGRO agree first UK data centre facility
SEGRO, a property investment and development company, has announced it has come to an agreement with the European data centre platform, Global Technical Realty (GTR) to construct its first UK-based data centre. SEGRO claims that the facility, which will span a total area of 400,711 sq ft, will be located in Slough and is to become “the largest data centre campus in the UK’s premier data centre and communications hub”.
What will SEGRO’s data centre facility be used for?
Supported by the global investment firm KKR, Global Technical Realty says it will be using the facility’s space on a 25-year term to operate bespoke data centres for high-growth global technology companies. The new facility aims to support the growing demand for third-party data centre provision amid ever-increasing growth in data usage and cloud services adoption.
Franek Sodzawiczny, CEO & Founder of GTR, said: “We are excited to be back in the UK alongside our partner KKR and look forward to working closely with SEGRO to deliver this state-of-the-art data centre campus. The data centre space is a fast-moving one. GTR was established to support its customers in providing a data centre solution wherever in the world there is a demand for it. We are delighted that the UK will become home to our flagship concept”.
James Craddock, Managing Director, Thames Valley at SEGRO, said: “We’re pleased to welcome GTR as the latest data centre operator to our thriving estate and our team of experts look forward to developing a stunning new facility for them and their customers. “Homeworking, data streaming, e-commerce and businesses’ reliance on cloud services have all grown during the pandemic, meaning demand for data centres is unabated.
“Slough Trading Estate is home to Europe’s largest data centre cluster and data centres are increasingly regarded as part of our key national infrastructure given the critical role they play in our daily lives”, he added.
The facility is expected to be delivered in two phases with operations beginning by Q4 of next year. The first phase plans to provide 132,575 sq ft of space phase two will create 268,136 sq ft of space. “Vacant possession of the site delivered to the customer by early 2022”, SEGRO said.
The project is also expected to create around 200 jobs during its construction, and a further 80 permanent roles once completed.