If you want to know difference in dedicated hosting and co-location web hosting then co-locate, you are simply renting space within someone else\'s facility to store your own server or servers. It\'s like a high tech gym locker that you are renting all or part of to house your servers. You either ship or deliver your server to your provider. Additional services provided with co-location vary from host to host but it certainly won\'t include the actual server. With a dedicated server you are getting all the features of co-location, plus the actual web server itself.
If we concerned about better one then it certainly depends on your particular needs, and there are excellent situations for both the dedicated server option is quickly becoming a better choice in more and more cases. If you already own a web server, or cluster that you prefer to use, then obviously co-location may be your best choice. If you are considering buying new equipment and shipping it off for co-location - please reconsider. The prices and equipment available in dedicated hosting these days are outstanding plus relieve you of the burden of hardware.