What Is Colocation? Why Should Businesses Host Their Servers at a Professional Data Center?

When IT systems go down, everything stops — transactions, operations, customer data. That’s why more and more businesses in Vietnam are asking a serious question: is maintaining an in-house s…
Trang Dinh Thu | Author
Apr 22, 2026

When IT systems go down, everything stops — transactions, operations, customer data. That’s why more and more businesses in Vietnam are asking a serious question: is maintaining an in-house server room still the optimal choice?

Power costs, cooling, security, round-the-clock staffing, risks of outages or fire… these are silent burdens that many organizations continue to carry. Meanwhile, a more efficient solution has been operating reliably in Vietnam for over 16 years: Colocation at a professional Data Center.

What Is Colocation?

Colocation is a service that allows businesses to place their servers, network equipment, and storage systems within the infrastructure of a professional Data Center — rather than building and operating their own server room.

Simply put: the hardware is still yours, but the entire physical infrastructure — power, cooling, security, and network connectivity — is managed by the Data Center.

Depending on your needs, businesses can rent space by unit:

  • 1U / 2U — for individual devices
  • Half Rack / Full Rack (42U) — for mid to large-scale systems
  • Private Cage / Suite — for businesses requiring full control and completely separate space

5 Reasons Businesses Should Consider Colocation

World-class infrastructure — no capital investment required. Building a server room that meets continuous operation standards requires significant investment in UPS systems, backup generators, precision cooling, fire suppression, CCTV, and multi-layer access control. With Colocation, all of this infrastructure is already in place and operated by a professional technical team to international standards — from day one.

High uptime with clear SLA commitments. Downtime is a risk no business can afford to ignore. A professional Data Center guarantees 99.982% infrastructure availability — equivalent to less than 1.6 hours of total downtime per year. This is a level of assurance that most in-house server rooms simply cannot match.

Full control over your equipment — unlike Cloud. Unlike Cloud solutions, Colocation means businesses own and directly control their hardware. This is critical for financial institutions, banks, and government agencies with strict requirements around data compliance, system auditing, and data sovereignty.

Multi-carrier connectivity at high speed. A carrier-neutral Data Center supports simultaneous connections to multiple ISPs including Viettel, VNPT, FPT Telecom, CMC Telecom, HGC, and DSTEL. This reduces dependency on a single provider, optimizes bandwidth, and ensures connection redundancy.

Cost optimization — converting CAPEX to OPEX. Instead of a large one-time investment in fixed infrastructure, Colocation allows businesses to pay only for the rack space and actual power consumed. When expansion is needed, simply add more racks — no need to build additional server rooms or upgrade power and cooling systems.

When Is Colocation Right for Your Business?

Colocation is particularly suitable if your organization is in one of these situations:

  • Systems require high availability and business continuity (banking, finance, insurance, telecommunications)
  • The in-house server room no longer meets operational standards or is at capacity
  • The business needs to scale infrastructure quickly without additional physical investment
  • There are data security compliance requirements that need an internationally certified environment
  • Building or upgrading a DC-DR solution — primary and disaster recovery data centers

Telehouse Vietnam — Over 16 Years of World-Class Data Center Operations in Hanoi

Telehouse Vietnam is a joint venture between FPT IS (51%), KDDI Japan (34%), and Mitsui (15%) — combining local market expertise with the global Data Center experience of the Telehouse/KDDI ecosystem (47 DCs across 10+ countries, serving over 3,000 customers worldwide).

The Telehouse Vietnam facility at FPT Tower, 17 Duy Tan Street, Cau Giay, Hanoi comprises two independent Data Halls (3rd and 4th floors) with a total area of over 1,600m², equipped with:

  • Dual-Power Feeds (2N) — 1:1 redundancy from input to each rack, 600 kVA UPS operating at 2N, generators ensuring a minimum of 72 hours of continuous operation
  • Precision Air Conditioning (PAC) — maintaining 22 ± 2°C, humidity 40–55%, N+2 redundancy configuration
  • 7-layer multi-tier security — access cards, biometrics, high-resolution CCTV, full access logs
  • FM200 clean agent fire suppression — safe for electronic equipment, automatic activation
  • NOC operations 24/7/365 — centralized monitoring on BMS/DCIM platform, on-site Remote Hands support

Current certifications and standards: ISO 9001:2015, ISO/IEC 27001:2022, ISO 22301:2019, Telehouse Standard Tier III, TCVN 9250:2021, PCI DSS.

Colocation is not simply renting server space — it is a strategic decision that ensures your IT infrastructure runs continuously, securely, and is ready to scale, while your internal IT team focuses on what matters most: building systems and driving business forward.

Contact Telehouse Vietnam for a free consultation on the Colocation solution that fits your business needs.

📞 024 3795 0791 | 📧 contact.tiv@telehouse.vn | 🌐 www.telehouse.vn

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