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Honestly 50% of why people colocate is for high end enterprise servers which would cost a couple hundred to lease. Where buying is cheaper in the long run as it will pay itself off in 6-12 months. That is one reason, there is various other reasons like companies like to own their own hardware or use special settings then ship it ready to go. It can really vary.
If you are looking for a low end server, definitely do not colocate lease. It is better and cheaper.
"If my server breaks, will I have to have it shipped back to me, fix it, and then ship it back to you?"
- Yes or we can attempt to fix it and bill you.
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