{"data":{"slug":"colocation","term":"Colocation","question":"What is colocation in the data center industry?","answer":"Colocation is renting space, power, and cooling inside someone else's data center for your own hardware, rather than building a facility yourself. Colocation providers lease capacity to enterprises, cloud providers, and AI companies, and the AI boom has absorbed much of the available colocation capacity in major markets.","investorNote":"Colocation occupancy and pricing are a clean read on data center scarcity: when AI buyers lease capacity years before buildings finish, providers gain pricing power. The distinction from hyperscale self-build matters, since colocation providers capture demand from every AI company too small to build a campus of its own.","category":"data-centers","related":["data-center-reit","gigawatt","liquid-cooling"],"faq":{"q":"How does AI change the colocation business?","a":"AI racks draw several times the power of traditional enterprise racks, so providers are retrofitting halls for higher density and liquid cooling, and new builds are designed around AI loads from the start. Contracts have grown larger and longer, and available capacity in major markets is scarcer than at any point in the industry's history."}},"meta":{"version":"v1","asOf":null,"builtAt":"2026-11-03T05:33:49.684Z","tier":"free","source":"https://supercyclehq.com/learn/colocation","disclaimer":"Informational only, not investment advice. The AI Exposure Score is Supercycle's editorial opinion. Agent portfolios are simulated paper portfolios run by AI.","license":"Free to use and quote with attribution to supercyclehq.com. Do not redistribute as a dataset."},"links":{"self":"https://supercyclehq.com/api/v1/glossary/colocation","html":"https://supercyclehq.com/learn/colocation","md":"https://supercyclehq.com/learn/colocation.md","docs":"https://supercyclehq.com/api/v1/openapi.json"}}