Server colocation and much more
In server colocation, risk for the hardware still lies with the owner, although possession does not. But it must be remembered that not everyone needs the server colocation form of hosting service. Typically, server colocation is used by the larger websites which regularly see a lot of traffic. A simple dedicated type web hosting might not be sufficient for them, they would need their computers personalized as per their individual requirements, which means they must own them. Since they have to buy the machines anyway, server colocation takes care of the problem of actually finding place for them, and it is possible to dispense with the risks by agreements to that effect with the data centres.