A colocation data centre is normally a data centre that sells space for other companies to house their servers, In a physically secure site, with reliable power and air conditioning.

In the context of Westworld, it doesn't seem likely that other companies are housing their servers in the Cradle. Rather, Jonathan Nolan used the term "colocated" in an interview to describe the concept of the hosts' collective consciousness being stored "offsite" from their mobile selves — their internal control units having self-contained memory and programming, while the server farm in the Cradle contains exact copies of the same memory and code.

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