Within a datacenter when you have a dedicated server, you need to pay rental charges which are

 Leased Or Rental Servers.

pre-agreed, to use the services provided to you. Depending upon the number of days you wish to use the server, the rental fees may be required to pay on a monthly, quarterly, half yearly or yearly basis. For a dedicated server, the rental fee covers the cost of the hardware that your web hosting provider provides. Your dedicated hosting provider need to consider the electrical cost and the cost of bandwidth within the server rental fee which is charged to you. If you already own a collocated server, then the rental fee of the server paid by you, covers the cost of the bandwidth and electricity which is used by your server.

Data Center.
Data Center.

Dedicated web hosting is more popular as they provide businesses and individuals with high specification web hosting environment. If one does not require a dedicated server anymore then the services can be immediately withdrawn by the dedicated service provider at your request. Dedicated servers are most reliable form of web hosting than the other forms of web hosting such as Reseller Web Hosting, Semi-Dedicated Web Hosting etc. The user is not required to share the resources, the user is the complete owner of the server in terms of resource allocation. The hardware of Dedicated Server, particularly high specification hardware are expensive. The dedicated server hosting provider will add up their profit to the cost of electricity and bandwidth that needs to be paid to the datacenter.

server2-300x225 Leased Or Rental Servers.

Usually large businesses and enterprises who have many servers might not have the money to build their own datacenter’s, then they go for the option of choosing a data center web hosting by collocating their servers in a professional web hosting environments. Then in such cases the rental fee of collocation server is cheaper than that of dedicated server as the collocation web hosting provider is not providing their servers.