Retail colocation
Colocation sold in small amounts (racks or cages) to many customers on shorter contracts, with the operator managing the facility.
How it works in a deal
Retail colocation sells racks or cages to many smaller customers on shorter contracts. Lenders look at customer diversity, churn and renewal history rather than one tenant's credit, which suits ABS structures that pool many contracts.
Example. Data centre ABS issuers commonly pool retail and wholesale contracts across several sites so that no single customer dominates the collateral. Data centre ABS guide →
For in-house counsel
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Related terms
Explanatory definition, not a statement that a particular transaction contains this term or a substitute for its contractual definition.
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