Colocation hosting means you can buy the rack space in a data center and store your hardware or even lease the server from the hosting provider. For this you just need to pay charges for rack space,cooling, and bandwidth. This service much more suitable for those companies which have their own servers but not willing to store them on their own business land site for some reasons. So multiple companies servers are located at these Data center but each one own their own rack space and servers.
Colocation hosting is much more similar to managed hosting. Here your server hosted in data center and it is taken care by their tech support team.
Colocation hosting is highly secured for every server because hosting company's data centers are well prepared to take care for servers security. Usually Data centers provides various types of rack mounts like 1U, 2U, and 4 U but there are limitations and cost differences in relation to the sizes. Also as per requirement customer can choose half or full rack cabinets.
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