Processing data closer to where it’s needed can improve speed and responsiveness across the board. Edge colocation supports this shift by reducing the distance between systems and users.

If you're wondering what colocation is and how it's evolving, edge deployments offer a new way forward.

Understanding edge colocation

Edge colocation puts servers and equipment in locations near the people or devices using them. Shorter travel time for data means faster response and smoother performance.

The setup is different from traditional data centers. Instead of keeping everything in one faraway building, edge colocation spreads computing across smaller sites in key areas. That helps power real-time tools like factory sensors, medical devices, or in-store tracking systems.

Traditional colocation—sometimes called business colocation—offers shared colocation services, where companies rent space, power, and cooling in big data centers. It helped avoid building custom facilities. But as more apps started needing fast data, those central hubs became a slow point.

Edge colocation solved that problem by putting computing closer to the action. It makes real-time services possible in healthcare, retail, industry, and other fields that rely on instant data.

What is an edge location?

An edge location is a small data site placed close to where users or devices generate data. It handles storage and processing on-site, so data doesn’t have to travel to a faraway data center.

Edge locations are used to support low-latency tasks like smart sensors, local video processing, or real-time analytics. They often sit inside office buildings, factories, retail spaces, or regional hubs.

Unlike large central data centers, edge locations focus on speed and proximity over scale. They’re built to power local performance, not global storage.

Edge colocation vs. traditional colocation

The debate around edge data center vs. colocation often comes down to location and speed. Edge sites are smaller and placed closer to where people use the data. They’re often built inside offices, retail locations, or local hubs. 

Traditional colocation centers are large, remote facilities built for size and efficiency, not proximity.

Edge focuses on location. Traditional colocation focuses on scale. That shift changes how fast data moves and how services respond.

Use-case scenarios for each model

Edge colocation is a good fit for:

• Retailers tracking in-store activity in real time
• Manufacturers using machine sensors for live diagnostics
• Hospitals processing scans and patient data on-site

Traditional colocation works well for:

• Cloud backup and disaster recovery
• Bulk data storage
• Global services that don’t require low-latency access

Benefits of edge colocation for enterprises

Edge colocation isn’t just a technical upgrade—it brings real performance gains to the business. Here’s how it makes a difference in everyday operations.

Reduced latency and improved user experience

Edge colocation shortens the path between devices and servers. That drop in distance reduces response time.

Tools like augmented reality, remote monitoring, and autonomous systems rely on speed. Even a one-second delay can cause missed actions or failed tasks.

For users, it means fewer delays. Apps open faster, devices respond in real time, and data-heavy tools stay responsive.

Enhanced data security and compliance

Keeping data local makes it easier to follow privacy laws like HIPAA or GDPR. There’s less need to send sensitive data to remote servers, which lowers risk.

Localized nodes also limit how much damage a cyberattack can cause. Smaller sites, spread out by design, give attackers less to target. When paired with Network Security as a Service (NSaaS), edge environments become safer and more controlled.

Scalability and flexibility in operations

Edge sites can grow as your business grows. You’re not stuck adding capacity to a huge, centralized data center.

Need more power in one city? Add a node. See a drop in traffic in another? Scale back. At Meter, our Managed Network as a Service (MNaaS) tracks usage trends and performance over time. You can expand smartly, without guessing or overbuilding.

Key industries leveraging edge colocation

Edge colocation solves real-world problems in industries where speed, privacy, and uptime matter most. Here’s how it supports critical operations in different fields.

Healthcare

Hospitals rely on fast access to data. Medical scans, AI diagnostics, and telemedicine all need low-latency performance. Edge colocation keeps data local, so doctors don’t wait for files to travel to a remote site.

It also helps with privacy. Patient data can stay on-site, which supports HIPAA compliance and lowers exposure.

Manufacturing

Factory floors generate constant streams of sensor data. Machines use it to detect problems early or make split-second decisions. Sending that data to a distant server wastes time.

Edge colocation keeps processing nearby. It supports live machine analytics, vision systems, and real-time feedback without delay.

Retail

Stores use edge colocation for inventory tracking, digital signage, and in-store analytics. It also powers smart checkout systems that respond instantly to customers.

With edge nodes in place, each location can manage its own data. That reduces central server load and helps deliver faster experiences on site.

Finance

Banking and trading apps can't afford delays. Fraud detection systems, live trades, and mobile banking all depend on real-time data handling.

Edge colocation places key apps close to where transactions happen. That improves speed, reduces risk, and supports localized compliance.

Implementing edge colocation: Best practices

To get real value, businesses need to match edge deployments to real needs—and avoid the trap of just recreating traditional colocation on a smaller scale. These best practices help make that happen.

Assessing organizational needs

Start with a focused audit of your workloads. What apps or systems slow down under your current setup?

Look at latency-sensitive tools first—things like real-time video, IoT sensors, or transaction systems. Those are prime candidates for edge.

Compliance matters too. If your business handles regulated data, edge nodes near the point of collection may be required.

Next, check your network traffic. If your core apps depend on a few regions or user hubs, start testing edge deployment in those zones. You don’t have to move everything at once.

Pilot tests in just one region or service can give early proof of how well edge fits your needs. From there, scaling is easier and smarter.

Choosing the right edge colocation provider

Not all edge data center companies are built the same. The right provider supports real-time performance and fits into your larger IT plan.

Look for:

• Location fit – Are the data sites close to your users or endpoints?
• Performance guarantees – Can they meet your latency or uptime goals?
• Integration support – Do they connect cleanly with your current tools?
• Transparency – Are costs, SLAs, and terms easy to understand?

Ongoing support matters more than it does with traditional colocation. If the provider gives you a cabinet and nothing else, you’ll still be stuck managing the hard parts on your own.

Working with a provider like Meter means you’re not left to configure, patch, or troubleshoot edge systems solo. We handle provisioning and performance as part of the service.

Integrating with existing IT infrastructure

Edge deployments should extend your network—not break it apart. Systems need to talk to each other. That includes your cloud platforms, on-prem data centers, and security tools.

Before deployment, review how data flows across your stack. Identify any bottlenecks or legacy systems that can’t handle distributed processing.

With Meter, integration is part of the process. We design edge rollouts to match your setup and manage network maintenance across both edge and central locations. That means your team spends less time managing downtime and more time building value.

Meter's role in edge colocation

Edge colocation works best when it’s part of a complete network—not an afterthought. At Meter, we build and manage the entire system, so edge sites connect cleanly with your existing tools and teams.

Overview of Meter's services

Meter delivers full-service networking. That includes everything from internet access to edge colocation, all through one provider.

We manage the full stack: fiber connections, hardware, installation, monitoring, and upgrades. There’s no handoff between teams or vendors. You don’t need to coordinate five different companies just to get a site online.

Edge locations get the same level of planning, testing, and analytics as your central systems. The goal is to deliver performance without adding new overhead for your team.

How Meter simplifies edge deployments

Edge projects usually mean more complexity—more sites, more vendors, and more chances for something to break. We take a different path.

With Meter, all provisioning, setup, and monitoring are handled under one service. You’re not left sorting out cabling, routers, or install timelines. We manage it end-to-end.

Our enterprise Wi-Fi solutions extend across both core and edge locations. That makes configuration consistent. Your IT team doesn’t need to rework tools or settings each time you deploy in a new space.

What future advancements are expected in edge colocation technology?

Edge colocation is evolving fast. As more businesses depend on local data processing, new tools and technologies are making edge deployments easier, faster, and more cost-effective.

Emerging trends and technologies

More edge sites are being built in both cities and remote areas. That shift supports local processing for everything from smart factories to connected farms. As 5G coverage grows, those edge nodes will support faster applications across more locations.

Server hardware is also getting smaller and more efficient. That change allows for dense, modular installations that use less power and fit into tighter spaces—like retail stores, medical offices, or shipping hubs.

Another big trend is the use of containerized applications. These apps are packaged with everything they need to run, making it easier to deploy and update software across hundreds of edge locations without manual setup.

Predictions for edge computing and colocation

Edge won’t replace the cloud—it will work alongside it. Real-time tasks will run at the edge, while long-term storage and non-urgent processing stay in centralized clouds.

Businesses will move toward hybrid models with shared tools to manage both environments. That means centralized visibility with local control, giving IT teams more flexibility across locations.

Meter is building tools that support this shift.

Our focus is on low-touch automation—making it easier to deploy, monitor, and scale edge environments without needing hands-on maintenance at every site. That way, your team can manage hundreds of locations without hundreds of headaches.

Frequently asked questions

How can edge colocation benefit my business operations?

It reduces latency, improves response time, and enhances local data processing.

Which industries are best suited for edge colocation solutions?

Healthcare, manufacturing, retail, and finance are all strong candidates due to their real-time needs.

What factors should I consider when choosing an edge colocation provider?

Proximity to users, infrastructure transparency, support options, and integration capabilities are key.

Is edge colocation more secure than traditional data center solutions?

It can be. Localized data limits exposure points and supports regulatory control.

Can edge colocation help in meeting compliance requirements?

Yes, local data storage helps meet standards like GDPR, HIPAA, and PCI-DSS.

What are the cost implications of adopting edge colocation?

Initial costs can vary, but operational savings and performance gains often offset them over time.

How scalable are edge colocation solutions for growing businesses?

Edge nodes can be deployed incrementally, allowing flexibility as needs change.

How does Meter support businesses in implementing edge colocation?

We provide integrated hardware, software, support, and monitoring in one service. No handoffs. No guesswork.

What Meter Connect brings to edge colocation

Edge colocation brings faster performance and more control—but only when the network behind it holds up. Meter Connect is built to support that need. We don’t just find the best ISP service and deliver it. We stay involved as your business grows and shifts.

Meter Connect offers secure, scalable connectivity with ongoing support. When edge sites need to be added, updated, or reconfigured, we’re there—without requiring your team to manage new tools or track down multiple vendors.

For businesses that want deeper integration, our vertically integrated network is also available. That includes fiber, hardware, installation, and lifecycle management. Maintenance, monitoring, and upgrades are part of the package, not an extra task.

You won’t have to piece together a network from scratch or worry about who owns which part. With Meter, you get a network that adapts to your pace—whether you're supporting one location or hundreds.

Request a quote today at Meter Connect.