Colocation means taking your physical server and putting it in a rack in a data center. You either share a rack or rent an entire rack for yourself. The colocation partner then provides internet connectivity, network infrastructure, and power backups.

Dedicated hosting solutions mean that you either buy or lease physical servers which then serve the purpose you need. Co-location is also dedicated hosting but specifically means your hardware. Dedicated hosting is often leased servers that a provider sets up in their datacenter to which you then have access.