What Is Colocation? Server Colocation Guide 2026 | SistemDC

What Is Colocation? Server Colocation Guide for Turkey 2026

What Is Colocation? Server Colocation Guide for Turkey 2026

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.

Short answer: Colocation means placing your own physical server in a data center's rack space. Ownership of the hardware stays with you; power, climate control, redundant network, IP and physical security come from the service provider. For a few servers, a 1U-4U shared rack or an ATX shelf, and for growing infrastructures, a 10U-42U private rack is preferred.

What Is Colocation?

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:

  • What belongs to you: Server hardware, the operating system, licenses, the application layer and the data.
  • What belongs to the data center: Rack space, electricity and UPS/generator redundancy, cooling, internet connectivity, IP allocation, physical security and the DDoS protection layer.

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.

Two Basic Models: Shared Rack and Private Rack

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.

Why a Data Center Instead of the Office?

Keeping a server in the office looks free at first glance. The real cost emerges when the items below are calculated one by one:

  • Power continuity: A data center has N+1 redundant UPS and generators. In an office, a single UPS only buys you minutes in a utility outage.
  • Cooling: A cold-aisle containment area delivers air at a controlled temperature to the front of the rack. Office air conditioning is not designed to do this without interruption, and a weekend failure can cost you the hardware.
  • Connectivity: A carrier-neutral facility has multiple Tier-1 carriers; when one line drops, traffic automatically shifts to another. This is not possible with a single ADSL/fiber line.
  • Physical security: Biometric access, 24/7 CCTV, visitor logging, VESDA early smoke detection and fire suppression systems.
  • DDoS: Attack traffic saturates your office line; in a data center it is cleaned at backbone level at the L3/L4/L7 layers.

We covered the infrastructure side of these topics in detail in the what is a Tier 3 data center article.

6 Technical Points to Check in a Colocation Contract

  1. Power commitment and billing model: Is power included in the plan, or metered? In the metered model the unit price per kWh should be written in the contract. In SistemDC rack plans this value is 13₺/kWh and you pay for what you consume.
  2. PDU redundancy: Single-feed (A) or dual-feed (A+B)? On servers with dual power supplies, an A+B dual PDU keeps things running when one feed is taken into maintenance.
  3. Uplink and traffic policy: Port speed and monthly traffic quota are different things. A 1 Gbit/s port + 33 TB quota and a 1 Gbit/s port + unmetered are not the same price.
  4. Remote Hands scope: How many hours a month are free? Is there a response-time commitment? SistemDC plans include 1 hour of free Remote Hands per month and a target of physical intervention within 30 minutes.
  5. IP and routing: How many IPv4 addresses are included, is there IPv6, can you make BGP announcements with your own ASN? Rack plans include a /29 subnet and support BGP routing.
  6. Exit terms: Contract term and early termination penalty. SistemDC offers flexible options from a 1-month trial period to a 36-month corporate contract, with no early termination penalty.

Who Is Colocation the Right Choice For?

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.

SistemDC Colocation Infrastructure

Our service is delivered from the data center in Istanbul, built to Tier 3 standards. Highlights:

  • Energy: N+1 redundant UPS, generator backup, scalable capacity of 2 kVA–20 kVA in racks and dual PDUs (A+B).
  • Climate control: Cold-aisle containment architecture.
  • Network: 140 Gbps main backbone, carrier-neutral structure, 6+ Tier-1 upstreams, Juniper and Cisco enterprise equipment, connectivity scalable from 1 Gbps to 100 Gbps.
  • Access: BIOS-level remote management with free KVM in all plans; setup and migration from your old data center are free.
  • Security: Biometric access control, 24/7 CCTV, VESDA early smoke detection, fire suppression, locked rack spaces and L3/L4/L7 DDoS protection.
  • Verification: Before ordering, you can test network performance via the Looking Glass with ping, traceroute and MTR.

Frequently Asked Questions

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.

Move Your Hardware to the Istanbul Data Center, Built to Tier 3 Standards

From 1U to 42U · Free setup and migration · Free KVM · 24/7 Remote Hands

Server Colocation Rack Rental

2026 SistemDC server colocation prices

Current shared rack / ATX pricing (excluding VAT, July 2026):

  • Starter 1U — 4,500₺/mo (1A / 220W) · 1U details
  • ATX shelf — 4,500₺/mo (1A / 220W)
  • Business 2U — 5,500₺/mo (1A / 220W) · 2U details
  • Advanced 4U — 9,850₺/mo (2A / 440W included)

Ordering and technical specifications: server colocation Istanbul.

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.

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