In technology, colocation is used when an organisation or an entity rents space for server and hardware storage to another organisation. Power, internet connection, cooling and security systems are supplied to the tenants.
This shared space between two or more organisations has many advantages. First, it is beneficial for the renters, as they can make a profit with unused space in their infrastructure. This fair trade also saves tenants money because they don’t have to build infrastructure and pay for facilities.
Colocation is also a good thing for the environment because it allows a reduction of infrastructure and optimisation of energy costs at the same time.