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Computing (FOLDOC) dictionary
co-location
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networking /koh'loh-kay`sh*n/ or /koh`loh-kay'sh*n/ (Or
"colocation") Providing network connections such as Internet
leased lines to several servers housed together in a
server room. This is typically provided as a commercial
service.
The hyphenated form is correct and the most common on the web,
followed by "colocation". "collocation" (/ko`loh-kay'sh*n/,
not /koh'-/), is an old word with a similar meaning. It is
common in dictionaries and follows the pattern of other
Latin-derived words like collect, college, and collate, but is
least common on the web.