Even colocation is often fraud with issues. I shall not mentioned the plectra of dead hardware from datacenter electricity failures. Ironically, my home has more stable electricity then some datacenters lol.
Unless you running a business where a few minutes downtime will cost you millions, most companies can literally run their own servers from their basements. I often see how much people overestimate their need for 99.999% uptime, or bandwidth requirements.
Its not like colocation is that much cheaper. The electricity prices your paying are often more expensive then even business/home electricity. That leave only internet/fiber, and the pletra of commercial fiber these days.
Used to get minimum quoted price of 2k, for a 1Gbit business fiber years ago (not inc install costs). Now you get in some countries, 5 or 10Gbit for 100 Euro business fiber.
When my colo contract runs out in a couple years, I may seriously consider it, especially since they're already talking about offering bigger bandwidth packages.