Colocation hosting is the large business solution to companies wanting their own very private server and having full control over what actually goes into the server: CPU, RAM, hard drives etc. The colocation hosting company basically give you the physical space for the server in a rack, and instead concentrate on this:

• The Internet connection is stable, usually with 99.99% guarantee
• A guaranteed gigabit bandwidth.
• Stable and secure power connections through using appropriate power back up systems (UPS).
• Fire suppression systems (waterless).

This type of hosting is the next step up from renting dedicated servers and will cost several thousands of dollars to set up.