Colocation hosting is an arrangement in which you keep your server equipment in the data center of a hosting service provider. This form of arrangement necessitates you to buy your own equipment. When your business requirements grow, you will find it more economical than before to purchase your own web server hardware. The web host will offer you not just the storage space but also other IT services that usually include redundant sources of power, physical security and a working internet connection. There are other cost-related benefits to choosing colocation hosting, as you can see in this infographic.