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Choose an enterprise-owned data center when your need for control and customization—and your ability to operate the facility—justify the investment and responsibility. Choose colocation when renting facility space and support infrastructure for your company-owned servers better fits your operating model. Neither is automatically cheaper. Compare both using the same workload, location, capacity, resilience, and lifecycle-cost assumptions.
What is the difference between an enterprise data center and colocation?
An enterprise-owned data center is a facility the company owns and operates. The company sets it up, purchases and maintains its equipment, and runs the facility. That arrangement can support internal risk management and customization, but it also brings setup spending, staffing, and ongoing operating costs. Relying on a single facility can create a significant point of failure. AWS explains the differences between on-premises, colocation, and cloud data centers.
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A colocation facility is a third-party data center where a business rents space for its servers, racks, and other computing hardware. The provider typically supplies facility security and supporting infrastructure, such as cooling and network bandwidth. The customer still owns and operates its hardware; it is renting a place to house it, not handing all IT operations to the provider. Fixed monthly housing costs and lower ongoing facility maintenance may help, but expenses can grow with the business, and facilities may not be available in every desired geography.
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#1 Best Overall
- 【Powerful Load-bearing】12U Network Rack Open Frame is constructed from durable cold rolled steel; Rack shelf supports enhance stability, wall-mounted capacity of 130lbs, the ground-mounted up to 260lbs
- 【Considerate Designs】Open-frame layout, including a top panel adding space, anti-slip shelf stops fixing devices and compatible racks for stack and expansion to meet requirements of home server rack
- 【Complete Accessories】A 12U open frame server rack, two ventilated shelves, four shelf stops, four velcro straps and a set of equipment mounting screws
- 【Versatile Application】Ideal for space-efficient multi-device setups in warehouses, retail, classrooms, offices and more; Excellent choices as AV Rack/IT Rack
- 【Effortless Setup】 Network Rack includes hardware, a comprehensive manual, mounting hole drilling template and an online assembly video to simplify setup
How should a business compare the two options?
Uptime Institute’s January 2026 guidance frames the decision around capability, risk posture, operating model, and strategic priorities, with cost as an important—but not sole—factor. Its public overview describes a normalized comparison between a new enterprise-owned facility and a colocation facility with the same characteristics, but does not disclose enough detail to reproduce the model or apply its result to an individual business. Use a like-for-like assessment instead:
- Define control and customization needs. Specify requirements for facility design, security, and operating procedures. Ownership can allow more customization and internal management of risks; colocation makes the business dependent on the provider for facility infrastructure.
- Calculate lifecycle cost, not just rent or construction. Include build or lease costs, power, cooling, staffing, maintenance, equipment, redundancy, and planned capacity growth. A fixed monthly colocation charge can make one part of the budget more predictable, but does not establish lower total cost.
- Assess operational capability. Decide whether the company can staff and maintain facility systems or prefers to rent that support. Facility infrastructure can include power systems, UPS, backup generators, ventilation and cooling, fire suppression, and security.
- Model resilience and outage risk. Consider the business impact of downtime and the design needed to avoid a single point of failure. A single enterprise facility can concentrate risk. Colocation does not remove the need to assess the specific facility or design the customer’s own architecture for resilience.
- Match geography and growth plans. Map customer locations, latency needs, target regions, and expansion plans against available colocation sites and the practicality of building. Colocation can help distribute hardware closer to end users, but sourcing facilities across all desired regions may be difficult.
What does the cost evidence show?
Uptime Institute’s December 2025 report, Cost Comparisons: Enterprise Data Centers vs Colocation vs Cloud, summarizes its 2025 Data Center Spending Survey. The survey ran from September 22 to October 31, 2025, and included 850 data center industry respondents. For the direct question, “When you compared the cost of your own data center vs colocation facilities, what did you discover?”, the report gives a comparison sample of 231 respondents:
Rank #2
- ADJUSTABLE DEPTH: 4-Post 42U open frame server rack with 4 vertical rails and adjustable mounting depth 22" to 40" (56,0cm to 101,7cm); Compatible with various servers / switches / data / AV and other IT equipment; EIA/ECA-310-E Compliant
- EASY ASSEMBLY: Mobile network rack with easy-to-follow assembly instructions and online video; Compact flat-pack shipping to avoid damage and facilitate installation; Total product height of 80.3in (204 cm) with casters, 78in (198cm) without casters
- COLD ROLLED STEEL: Durable 4 Post 19in open frame rack designed for ventilation with 42U mounting height and 1320lb (600kg) weight capacity (stationary); 3 install options included: casters, levelling feet, or base-plate to secure rack to the floor
- HARDWARE INCLUDED: Rolling computer/data rack includes cage nuts and screws to mount equipment, easy to read Units (U) and depth adjustment markings, cable management hooks for organization, and required assembly tools
- THE IT PRO'S CHOICE: Designed and built for IT Professionals, this 42U rack is backed for 2-years, including free lifetime 24/5 multi-lingual technical assistance
| Reported answer | Share of respondents (n=231) |
|---|---|
| Workload provisioning was cheaper in their own data center | 42% |
| Workload provisioning was cheaper in colocation | 28% |
| Costs were roughly equivalent | 19% |
| Had not compared | 8% |
The reported categories do not add to 100%; the figures above preserve the report’s stated values without inferring an unreported category. They represent respondents’ perceptions, not audited costs, a controlled comparison, or a forecast for a particular company. The survey included people in varied digital infrastructure roles and sectors, so its results are evidence that cost outcomes differ—not proof that either model wins universally. Read Uptime Institute’s survey summary.
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Consider an enterprise-owned facility when
- Distinctive facility control or customization is central to the business.
- The company has the capability to operate and maintain the facility.
- A lifecycle comparison using realistic capacity and resilience assumptions supports investing in its own capacity.
Consider colocation when
- Renting space and facility support fits the company’s operating model.
- A suitable location and capacity are available for the workload.
- The contract and service costs compare favorably against the same lifecycle assumptions used for an owned facility.
When neither option is clearly preferable
Compare a hybrid arrangement or cloud services separately, and make the decision workload by workload. A company may have different control, location, or capacity requirements for different systems; one organization-wide answer need not fit every workload.
Rank #3
- Adjustable Depth: 23-40'' adjustable depth is used for servers and network equipment, ensuring enough space for AV equipment, components, and cabling, while allowing you to access ports and equipment from multiple sides.
- Strong Load Capacity: Ground-Mounted Load Capacity: 500 lbs, Wall-Mounted Load Capacity: 150 lbs. The av rack is made of carbon steel for better weldability performance and can help save space while meeting your need to place multiple devices.
- User-friendly Design: Ergonomic design makes the open frame av rack easier to use. The additional top panel is able to place other items with more available space. Roller design moves anywhere and anytime, is convenient, and is more energy-saving.
- Complete Accessories: We provide the accessories you need, including 2 x Pallets, 145 x M5*10 Cross Head Screws, 4 x Casters, 4 x M10*50 Expansion Screws,10 x M6*12 Cage Nuts, 1 x Grounding Wire, 1 x User Manual.
- Wide Application: The server rack wall mount maximizes the use of available space, suitable for retail venues, classrooms, offices, and other places where space is limited.
What information is needed for a business-specific recommendation?
A recommendation depends on the workload profile, location, capacity and utilization path, resilience and compliance requirements, internal facilities capability, and actual build and colocation bids. Without those inputs, the survey can help frame questions but cannot determine which option will cost less or better meet a particular company’s needs. For businesses evaluating provider availability, contracts and facility capabilities should be assessed against their own requirements.
Quick Recap
Best Value
- Adjustable Depth: Depth adjustable from 23" to 40", this open frame server rack accommodates servers and network equipment while providing ample space for A/V gears and cable management. Enjoy easy access to ports and devices from multiple angles.
- High Weight Capacity: Supports up to 300 lbs on the floor (200 lbs when adjusted to maximum depth) and 200 lbs when wall-mounted (depth cannot be adjusted in wall-mounted mode). Made from carbon steel for superior welding performance and durability, this open frame rack is designed to save space while accommodating multiple devices.
- User-Friendly Design: Designed with your convenience in mind, this open frame server rack features an top shelf for extra storage and improved space utilization. The rolling casters let you move it effortlessly wherever you need it, making setup and movement a breeze.
- Widely Applicable: Maximize your space with this adaptable open frame server rack, designed to make the most of every inch. Ideal for retail spots, classrooms, offices, and any area where space is at a premium, it delivers practical solutions for your storage needs.
- Everything You Need: Our open-frame rack comes with fully equipped accessory kit for easy setup and secure installation: 2 x Trays, 4 x Casters, 1 x set of Screws, 16 x M6*12 Cage Nuts, 1 x Grounding Wire, 1 x Internal & External Hex Wrenches, and 1 x User Manual.
Rank #4
- Universal 19” Rack Mount Compatibility – Perfect for pro audio, video, IT, and network gear. Compatible with mixers, routers, patch panels, servers, power amps, and more.
- Heavy-Duty Load Capacity – Built to support up to 550 lbs. Ideal for studio gear, DJ setups, server equipment, and AV components that demand serious stability.
- Robust Steel Frame & Design – Made with 1.5mm thick steel and weighs 36 lbs for maximum durability, reduced vibration, and long-term reliability in any setting.
- Mobile & Secure – Preinstalled with 3” industrial-grade caster wheels (lockable), making it easy to move and position your rack exactly where you need it.
- All-In-One Setup Kit Included – Comes with 34 rack screws (5mm & 6mm), a 1U blank spacer, and an assembly tool—ready for fast installation out of the box.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.




