The healthcare industry comprising of hospitals, pharmaceuticals, biotechnology, and related life sciences is among the world’s fastest-growing industries. It consists of complex organizations that include doctors, patients, staff, administrators, and public. In today’s scenario, healthcare professionals are becoming more inclined toward using advanced IT infrastructure, and require secure and efficient data management solutions for maintaining and transmitting sensitive data of patients and easy access to legacy applications for different activities such as patient management, hospital resources management, doctor-patient relationship management, medical supplies management, and maintaining data for patients’ health records. Data center colocation services reduce the data center operating cost and improve patient outcomes by offering complex services with a strong focus on delivery, security, and interoperability. Moreover, colocation enables healthcare providers to more effectively share critical data and increase operational efficiency, thereby improving the quality of patient care and health. Colocation services also help the healthcare industry to adhere to various compliances such as HIPAA, which requires electronic health records to be stored online. Thus, data center colocation services assure large data spaces to provide cost-effective quality healthcare by storing large amounts of patient data offsite. It enables medical practitioners to minimize medical errors and efficiently manage practices, track resources, without compromising on patient privacy. These advantages of data center colocation services are expected to increase their demand from the healthcare sector.