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What is Colocation — And Why It Matters

What is Colocation — And Why It Matters

The Rise of Infrastructure Complexity

As businesses become more dependent on data, AI, and cloud services, the need for scalable and resilient infrastructure is greater than ever. Managing infrastructure in-house can be complex and costly, requiring significant investment in power, cooling, and connectivity. This is where colocation comes in — offering businesses the ability to house their hardware in a professionally managed data center.

What is Colocation?

Colocation is the practice of renting physical space in a third-party data center to house servers and networking equipment. Businesses retain full control over their hardware while outsourcing the management of the facility’s infrastructure, including power, cooling, and security.

How Colocation Works:

  • Space: Businesses rent rack space, cabinets, or private cages.
  • Power: Facilities provide redundant power sources and backup systems to ensure continuous operation.
  • Cooling: Precision cooling systems maintain optimal operating conditions.
  • Connectivity: Direct access to internet exchanges, cloud providers, and carrier networks.
  • Security: Biometric access, surveillance, and on-site security ensure physical protection.

Why Colocation is Becoming Critical

1. Cost Efficiency

Maintaining an in-house data center requires substantial capital and operational expenses. Colocation allows businesses to reduce costs by sharing infrastructure while benefiting from enterprise-grade facilities.

2. Scalability

Infrastructure needs can change quickly. Colocation provides the flexibility to scale up or down without the time and expense of expanding a private data center.

3. Performance and Connectivity

Direct access to cloud providers and major carriers reduces latency and increases network performance. Businesses can interconnect with partners, customers, and cloud platforms more efficiently.

4. Reliability and Uptime

Colocation facilities are designed with redundancy at every level — power, cooling, and connectivity — ensuring 99.999% uptime and minimal disruption.

5. Security and Compliance

Data security and regulatory compliance are essential. Colocation providers offer multi-layered physical and cyber security, meeting stringent industry standards.

Why MedOne is a Colocation Leader

MedOne is Israel’s leading colocation provider, with over 25,000 sqm of secure data center capacity across four underground facilities — and seven more sites under development. MedOne’s underground data centers are designed to withstand physical and cyber threats, ensuring uninterrupted service even during national emergencies.

What Makes MedOne Stand Out:

Carrier-Neutral Access: MedOne provides direct connectivity to global networks, submarine cable landing stations, and national fiber networks — enabling low-latency, high-performance networking.
Hybrid Cloud Integration: Businesses can seamlessly connect to AWS, Microsoft Azure, and Google Cloud for a flexible hybrid cloud strategy.
Security and Compliance: MedOne’s facilities meet international standards, including ISO 27001 and SOC 2, providing secure environments for sensitive data and mission-critical workloads.
Resilience: The underground design of MedOne’s facilities offers protection from natural disasters and geopolitical risks.
Expert Support: 24/7 monitoring and technical assistance ensure fast response times and optimal performance.

Real-World Impact

During the October 7 war, MedOne’s underground facilities played a critical role in ensuring business continuity for many Israeli organizations. The secure infrastructure and redundant systems allowed companies to maintain operations despite the national crisis — highlighting the value of a resilient colocation strategy.

The Competitive Edge of Colocation

Businesses today require infrastructure that is both agile and resilient. Colocation provides a strategic advantage by combining the control of private infrastructure with the flexibility and cost-efficiency of shared data center resources. Companies gain direct access to cloud ecosystems, improved network performance, and high levels of security — all without the complexity of maintaining their own facilities.

Colocation isn’t just about data storage — it’s about creating a foundation for innovation and growth in a rapidly evolving digital landscape. MedOne’s colocation services offer the reliability, security, and connectivity that modern businesses need to succeed.

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