365 Data Centers, a company that operates 17 U.S. colocation facilities, has taken on $16 million in fresh funding.

The money should not only help 365 keep running all its facilities but also add new services, including cloud-related ones, according to a statement today.

While more and more companies are adopting public cloud infrastructure, making it a growth area, others have retreated to private clouds after running applications in public clouds like Amazon Web Services. However, Microsoft, VMware, and other cloud providers acknowledge the appeal of hybrid architectures, where companies tap both public clouds their own infrastructure. This means colocation, where companies can place their infrastructure near telecom infrastructure and other companies’ IT equipment, still has a place today.

Which is why large colo providers like Digital Realty and Equinix have been steadily growing right alongside the biggest cloud providers. And it’s why investors want in on 365.

Fortress Credit Corp. has provided a $55 million credit facility to the company. Crosslink Capital and Housatonic Partners, which have previously funded 365, have also contributed new funding to the company.

VB TRansform 2020: The AI event for business leaders. San Francisco July 15 - 16

365 Data Centers started in 2002 as 365 Main and is now based in Emeryville, Calif.