Collocation can be associated with arrangement. It is a service provided by operating companies or data centers where these companies rent space for the placement of server racks or racks for network components to other network operators or end customers. Collocation is a type of hosting that takes place in collocation spaces.
The advantages of collocation are economic and technical: collocation allows computers or switching technologies for end customers to be connected directly to the network of the operating company. The collocation customer owns the technical equipment; it merely rents the space in a collocation room. The collocation provider provides some collocation services. For example, the power supply, which is ensured by UPS systems even in the event of an interrupted power supply. Other collocation services include cooling of systems and physical security of collocation spaces through biometric checks by security personnel.
In public networks, collocation is regulated by the Telecommunications Act(TKG) and the Network Access Ordinance(NZV). According to these, the network operator, e.g. Telekom, is obliged to provide other subscriber network operators with appropriate space for their technical equipment in the collocation rooms.