Colocation is a growing trend as businesses seek to reduce costs and ensure the redundancy in critical network systems. Many companies both large and small, technical and brick-and-mortar, choose to house their data systems in Los Angeles. Colocation in a city with a notable concentration of technical expertise and potential partners also interested in colocating resources makes Los Angeles a choice spot for colocation of critical hardware. For high bandwidth data requirements or hardware architectures requiring a great deal of maintenance due to upgrades or service expansions proximity is a key consideration when locating network hardware - and many industries with these sorts of concerns are based in Los Angeles. Colocation is especially attractive in the LA area because of high rents on business space and the threat earthquakes pose to continuity of business.

Instead of being completely responsible for any damage done in a quake, colocating allows the risk,costs, or even insurance premiums to be spread between several companies through the host of the colocation service.In Los Angeles, colocation also takes advantage of the existing quantity of trained technical professionals whose expertise can be pooled in one location to help troubleshoot network issues. This economy of scale also exists in the architecture required to support numerous network systems - an air conditioning system can be more easily and cheaply upscaled once into an industrial grade system than installed in numerous rooms or corporate offices. Power and backup needs are also more efficiently met in Los Angeles colocation centers due, again, to the economies of scale offered by joint hosting of hardware.

Los Angeles colocation resources are also not difficult to find. Internet service providers utilizing Internet exchange points typically have existing infrastructure to support and plenty of additional space to devote to hosting another company's network hardware, and can often offer services featuring low latency and a relatively low price. Los Angeles has no shortage of these exchange points due to the preeminence of high tech industries in the area. The benefits of colocation are manifold, especially in a market like Los Angeles. Colocation benefits from the economies of scale and existing support infrastrucure of LA, and is worth any technology focused business' attention.