Look into it but also be aware that your responsibilities for colo are even greater than for a managed solution. Not only are you responsible for the data (incl backups), the applications and the O/S but now also for the hardware, the BIOS, the networking kit within the rack, etc. If anything inside the rack fails in the middle of the night it will be up to you to fix it - and that often includes physically travelling to to the datacentre.

Colo does have its merits and if, like cavac, you need/want hardware or a networking configuration which is too niche for a managed provider then it can be a good solution. Also of course for big firms who can afford all the redundancy needed to offset some of the downsides.

We stopped using colo more than a decade ago and it was the right decision for us. YMMV.