Co-located hosting involves the Webmaster providing their own server, which is typically housed in a data center or facility that links it to the Internet. The Webmaster usually pays the data center a fee to house the server. This can be a cheaper arrangement than dedicated hosting for sites that receive a lot of traffic.
Services that locate your server in a dedicated facility such as a data center, and provide high speed Internet connections, security, climate control, backup power, and technical support. This differs from dedicated server hosting packages, in that the client owns and controls the server, and the software on it.