While locating any particular business, it is pertinent to weigh the pros and cons associated with its geographical location. There is a well known theory of industrial location which talks of a number of factors related to demography of the place, proximity to markets vis-a-vis source of raw material, nature of raw material and finished good, etc and based on these parameter, the location is decided. Same is also true with the most modern industry of this new age- the colocation hosting industry. Colocation hosting providers ensure physical safety of the servers of their clients and provide all facilities which enable smooth running of the servers. However, they only take care of the physical aspect of the server and the software aspect does not come under their purview.

Colocation hosting providers offer cabinets, racks or other custom spaces on rent. By providing these services, they prevent you from developing infrastructure and avoid all associated capital and maintenance outlay costs. Thus, these do enable you to save massive sums of money which could have otherwise gone in to salaries, power-back ups, security systems, air conditioning and many other things. Considering the important role that these providers play and the fact that the general maintenance of server with respect to its software health is the duty of your technical staff only, you would need these to be at an easily accessible distance from your office. This would allow your technical staff to make regular visits to the service provider for server software updates and maintenance.

For Colocation hosting providers, the place of server installation matters a lot. The geography plays an important role. The location decision has to be based on many factors, three of the most important ones are- proximity to the market (or clients), shelter from natural risks and hazards and availability of networking infrastructure.

Since it is the IT professionals who would be required to work on the server, it shall be within approachable distance of the clients. This requirement is more important for colocation providers than for the hosting service providers since client manages the server, not the provider. For this reason, this factor assumes considerable importance. That is also the reason why colocation service providers choose regions which are IT hubs. Since most of the demand arises from these locations, the location has to close to these businesses as well.

Every country of the world faces some kind of natural hazard periodically. Floods, cyclones, earthquakes, extremities of temperatures and many other natural hazards could be typical to a particular geographical location. Assessment of the hazard is crucial to decide whether colocation hosting providers would be investing in such a location with adequate safety precautions in place or not.

Another important criterion of location is whether adequate networking infrastructure is available or not. Colocation hosting providers require strong bandwidth through properly cabling systems. Since the services have to be run on networking, presence of robust infrastructure becomes a pre-requisite for selecting a particular geographical location.