Between buying a server and renting one there is a third way: colocation. The hardware remains yours, but power, cooling, network, IP and physical security are provided by a professional data center. Also known as server colocation or rack rental in this market, the model is the most direct way for teams that have invested in their own hardware to get rid of the rack in the office and move to business-grade infrastructure. In this guide we explain how colocation works, which model is chosen at which scale, and how it is implemented in our Istanbul data center, built to Tier 3 standards.
Colocation (co-location) is the model of renting a data center's physical space, power and network infrastructure and running your own server hardware there. The line of responsibility is clear:
This distinction is what separates colocation from a dedicated server rental. With a dedicated server, the hardware belongs to the provider and the risk of failure lies with the provider. With colocation you choose the hardware, you buy it and you supply the part if it fails — in return the monthly cost drops significantly and you gain full control over the hardware.
The need for colocation is almost always determined by scale. The requirements of a single server and of 20 servers are not the same.
| Criterion | Server Colocation (Shared Rack) | Rack Rental (Private Rack) |
|---|---|---|
| Space | 1U, 2U, 4U, ATX | 10U, 21U, 42U and ATX shelves |
| Power model | Included in the plan (~220W / 1A; Advanced 440W / 2A) | Metered consumption: 13₺/kWh |
| Starting price | 4,500₺/mo | 10,000₺/mo |
| Physical access | Escorted access + Remote Hands | 24/7 independent access with card & key |
| IP | 1–8 IPv4 addresses (depending on the plan), IPv6 supported | /29 subnet included, BGP routing |
| Uplink | 1 Gbit/s | 1/10 Gbps (42U and ATX: 10 Gbps) |
| SLA | 99.98% | 99.98% |
| Who it suits | 1–4 servers, SaaS production, game nodes, backup DC | Growing racks, enterprise workloads that need isolation |
The practical rule is this: up to four servers, a shared rack is both cheaper and faster to bring into service. After the fifth server, the cost per U and the cabling complexity make a private rack the better deal. On prices, see the rack rental prices 2026 guide for details.
Keeping a server in the office looks free at first glance. The real cost emerges when the items below are calculated one by one:
We covered the infrastructure side of these topics in detail in the what is a Tier 3 data center article.
| Scenario | Recommended model | Reason |
|---|---|---|
| A SaaS team with 1–2 servers | 1U–2U colocation | The hardware has already been bought; only a professional home is needed |
| Game server operator | 4U colocation (Game/L7 DDoS) | Custom high-clock hardware + a gaming DDoS layer |
| KVKK-focused enterprise workload | 10U rack | Data locality + a locked private space + access logging |
| An ISP / hosting company with its own ASN | 21U–42U rack | BGP announcements, IP transit, 10 Gbps uplink |
| Disaster recovery (DR) site | 1U–4U colocation | A secondary location; a low fixed cost is enough |
| A new project with no hardware | Not colocation — a dedicated server | Starting without capital expenditure makes more sense |
The last row matters: colocation is not always the cheapest option. We examined, with numbers, how quickly a hardware investment pays for itself in the colocation vs dedicated server TCO comparison article.
Our service is delivered from the data center in Istanbul, built to Tier 3 standards. Highlights:
What is the difference between colocation and hosting?
With hosting, the server belongs to the provider and you only rent space on it. With colocation the server is yours; you buy only space, power, cooling and network from the data center.
How do I hand over my server?
There are two ways: you can ship it and leave the installation to our team, or come to the facility with your 24/7 physical access right and install it yourself. Setup is free in both cases.
What happens if my hardware fails?
Because the hardware is yours, supplying spare parts is your responsibility. When you send the part, the Remote Hands team carries out the replacement; 1 hour a month is free for this.
Can I bring my own IP block?
Yes. If you have your own ASN and IP block you can make BGP announcements. If you do not have a block, you can obtain /29, /28, /27 or larger blocks from our IP leasing service.
Is it possible to move from colocation to a rack?
Yes, scaling is designed this way. You can start with 1U and move to a 10U, 21U or 42U rack as the number of servers grows.
Is colocation an advantage for the KVKK?
Because the hardware stays within Turkey's borders, personal data is not transferred abroad. For details, see the KVKK and Turkey-location server guide for more.
From 1U to 42U · Free setup and migration · Free KVM · 24/7 Remote Hands
Server Colocation Rack RentalCurrent shared rack / ATX pricing (excluding VAT, July 2026):
Ordering and technical specifications: server colocation Istanbul.
Plans: Server colocation · Rack rental · 1U price · 2U price.
To host your own server in Istanbul, see the server colocation plans. For multiple servers or a locked rack, rack rental is a better fit.