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Why wholesale colocation could be key to your digital transformation

In today's business environment, digital transformation is essential for staying competitive. It involves integrating digital technologies into all aspects of a business, fundamentally changing how it operates and delivers value to customers.

05 / 17 / 2024
5 minute read
Wholesale colocation

This shift requires robust, scalable, and reliable infrastructure to support increasing demands for data processing, storage, and connectivity.

A vital component in this transformation is wholesale colocation. By providing dedicated, large-scale data center space, wholesale colocation offers the scalability, cost-efficiency, and security needed to power digital transformation initiatives effectively.

What is wholesale colocation?

Wholesale colocation refers to leasing large-scale, dedicated data center space to enterprises. This arrangement provides businesses with the infrastructure needed to support extensive data processing and storage without the costs and complexities of building and maintaining their own data centers. Wholesale colocation offers high power densities, extensive connectivity options, and robust security measures, making it an ideal solution for organizations with substantial data and computational needs.

Difference between retail and wholesale colocation

Retail colocation involves leasing smaller, shared spaces within a data center suitable for businesses with modest infrastructure requirements. These spaces are typically more flexible and can be customized to some extent to meet specific needs. However, wholesale colocation provides large, private spaces designed for significant scalability and customization. It caters to businesses with extensive infrastructure needs, allowing for greater control over the environment and operational efficiencies.

Businesses benefit from wholesale colocation

CoreWeave: CoreWeave, a specialized cloud provider for GPU-accelerated workloads, exemplifies how businesses can benefit from wholesale colocation. Partnering with Flexential, CoreWeave has expanded its data center footprint to support high-performance computing tasks like AI, machine learning, and VFX rendering. State-of-the-art Flexential facilities offer the necessary high-density capacity and robust infrastructure, enabling CoreWeave to efficiently manage and scale its extensive computing needs.

Applied Digital: Applied Digital, a leader in high-performance computing (HPC) solutions, has significantly benefited from its partnership with Flexential. Utilizing the FlexAnywhere Platform, Applied Digital swiftly deployed high-density computing resources, including NVIDIA H100 GPUs, to meet the growing demand for AI-based cloud services. This collaboration enabled Applied Digital to secure a major contract with a prominent AI software company, highlighting the essential role of Flexential advanced data center solutions in supporting rapid growth and scalability. The partnership includes a 7.5MW deployment across multiple markets, ensuring Applied Digital's AI initiatives can scale efficiently.

Benefits of wholesale colocation for digital transformation


Wholesale colocation offers significant scalability benefits, allowing businesses to adjust resources based on changing needs. This flexibility is crucial for handling increasing data and workload demands. Companies can easily scale up during periods of growth or down during slower periods without the need for significant capital investments in infrastructure.

Cost efficiency

One of the primary advantages of wholesale colocation is its cost efficiency. It reduces operational costs by eliminating the need to build and maintain in-house data centers. Additionally, businesses benefit from cost-sharing and economies of scale as they share infrastructure with other tenants while still enjoying dedicated spaces.

Security and compliance

Wholesale colocation provides enhanced security measures and ensures compliance with industry standards. These facilities are equipped with both physical and cyber security measures, including advanced surveillance, access controls, and robust firewall protections. This ensures that sensitive data and critical applications are safeguarded.

Reliability and uptime

High availability and redundancy features are standard in wholesale colocation facilities. These data centers are designed with multiple layers of redundancy to ensure consistent performance and minimize downtime. Service level agreements (SLAs) provide guarantees for uptime, offering peace of mind that business operations will remain uninterrupted.

Access to advanced technology

Wholesale colocation facilities offer access to state-of-the-art infrastructure and technology, critical for businesses undergoing digital transformation. For instance, Flexential high-density colocation services support advanced AI and machine learning applications, providing the necessary computing power and scalability. These facilities are equipped with cutting-edge hardware and connectivity options, ensuring optimal performance and efficiency. Regular updates and maintenance by colocation providers ensure that businesses benefit from the latest technological advancements without the burden of managing these updates themselves. This continuous innovation and support are essential for maintaining a competitive edge and operational efficiency.

Choosing the right wholesale colocation partner

When selecting a wholesale colocation partner, several critical factors should be evaluated to ensure the provider aligns with your business needs:

1. Location: Proximity to your operations and customers can reduce latency and improve service delivery. Consider regions with low risk of natural disasters for added resilience. For example, Flexential data centers in Atlanta, Portland, and Denver are strategically located to offer high-density, wholesale availability.

2. Scalability: Ensure the provider can accommodate your growth. The ability to scale resources up or down is essential for adapting to changing business demands.

3. Security: Evaluate the physical and cyber security measures in place. The provider should comply with industry standards and offer robust data protection.

4. Support: Assess the level of support offered, including technical assistance and customer service. A responsive and knowledgeable support team can significantly impact your operations.

Importance of evaluating colocation providers based on business needs

Selecting the right wholesale colocation partner is crucial for supporting your digital transformation initiatives. The provider must align with your specific business needs, offering the flexibility, security, and reliability required to handle your data and workload demands. Thoroughly evaluating potential partners ensures that you choose a colocation provider capable of supporting your current and future infrastructure requirements, enabling seamless growth and operational efficiency.


Wholesale colocation is a critical enabler of digital transformation, providing the necessary infrastructure, scalability, and reliability to support modern business demands. By leveraging it, businesses can achieve cost efficiency, enhanced security, and access to cutting-edge technology while maintaining the flexibility to scale as needed.

Choosing the right colocation partner, such as Flexential, is essential for ensuring these benefits are fully realized. Comprehensive colocation services by Flexential offer state-of-the-art data centers equipped to handle high-density deployments and support advanced applications.

Partnering with Flexential provides a reliable foundation for driving innovation and growth. Learn more about Flexential on our website or contact Flexential today for a personalized consultation and see how Flexential can tailor solutions to meet your unique needs.

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