What is the difference between Dedicated Server and Co-located Server?

With a "dedicated server," the data center owns the server. A dedicated server is generally all-inclusive; you get the hardware, network connection, and a set amount of bandwidth (or data transfer) for a fixed monthly fee.

With a "collocated server," you own the server and the data center rents you a place to put it. Exactly what you get with a collocated server can vary. Sometimes you pay for a place for your server and the data center gives you that plus the power and a fixed amount of bandwidth for a set montly fee. Often the data center provides the space and the power, and you yourself are responsible for getting a network connection and the hardware to support it (a router or a switch). When you hear the term "carrier-neutral data center," it refers to the later case.