Canada Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET INSIGHTS

The Canada data center market size will witness investments of USD 9.04 billion by 2029, growing at a CAGR of 10.26% during the forecast period. Furthermore, the region is also witnessing growth in connectivity with submarine cables connecting major locations. Around five submarine cables are under development and are expected to be operational during the forecast period.

The Canada data center market presents a compelling landscape shaped by robust infrastructure, government support, and strategic positioning. This abstract overviews key factors driving the market’s growth, including increasing demand for cloud services and data storage. Major hubs like Toronto and Montreal are hotspots for major investments in this tech space. Furthermore, the increasing investment in renewable energy, from solar and wind energy to power data centers, is a major attraction for Canada's industry players. For instance, STACK Infrastructure launched its first facility in Toronto, Canada, powered by 100% renewable energy.

The low electricity pricing, abundant renewable energy, free cooling solutions, availability of tax incentives, and improved connectivity with the U.S. and other countries make the Canada data center market attractive to investors. Furthermore, QScale, a new company, announced its plan to build at least three facilities in Quebec City powered by renewable energy and focused on AI. The facilities are expected to be online during the forecast period. 

KEY HIGHLIGHTS

• Canada has around 117 operational colocation data centers. Most colocation data centers are being developed according to Tier III standards. The Canada data center market has the presence of some local and global operators such as Cologix, Equinix, Digital Realty, eStruxture Data Centers, Urbacon Data Centre Solutions, and Vantage Data Centers, among others.
• The increase in the adoption of cloud-based services in the country is growing the establishment of cloud regions by major cloud services providers such as Microsoft, Oracle, Google, Amazon Web Services, and Tencent Cloud.
• Increasing investments in prime locations such as Montreal and Toronto will lead to an increase in land prices. Such factors may propel operators to shift their focus to emerging locations such as Calgary, Quebec City, and others during the forecast period.
• The hyperscale self-built investment by Microsoft and AWS will likely increase the power capacity in the Canada data center market during the forecast period.
• The deployment of 5G networks will boost the region's digital economy and lead to a higher demand for high-bandwidth networking infrastructure. The adoption of Software Defined Networking (SDN) is likely to increase owing to smart city initiatives carried out by government agencies. 

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Canada colocation market revenue.
• An assessment of the data center investment in Canada by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Canada data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Canada
  • Facilities Covered (Existing): 117
  • Facilities Identified (Upcoming): 13
  • Coverage: 22 Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Canada
  • Colocation Market Revenue & Forecast (2023-2029)
  • Wholesale vs. Retail Colocation Revenue (2023-2029)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• The Canada data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the market.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
• A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

• Some of the key investors in the Canada data center market are Equinix, Cologix, Digital Realty, STACK Infrastructure, Vantage Data Centers, eStruxture Data Centers, Microsoft, AWS, Urbacon Data Centre Solutions, OVHcloud, QScale and others.
• In December 2023, AWS announced the launch of its new AWS Canada West (Calgary) Region, with three Availability Zones (AZs). The company plans to invest around USD 18 billion towards expanding Canada's West and Central regions by 2037.
• In November 2023, Microsoft plans to establish several new data centers in Quebec City by investing USD 500 million in expanding its cloud computing and AI infrastructure over the next two years.
• Several global companies are entering the Canada data center market by acquiring facilities. For instance, in June 2023, KDDI (Telehouse) entered the market by acquiring Allied Properties REIT with an investment of over USD 1 billion.
• The existing colocation operators are also involved in expanding their existing portfolio. For instance, Equinix, Cologix, eStruxture Data Centers, Urbacon Data Centre Solutions, and others are developing several new facilities in the Canada data center market.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Montreal
  • Toronto
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)
  • Montreal
  • Toronto
  • Other Cities

REPORT COVERAGE:

This report analyses the Canada data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV
• Geography
  • Toronto
  • Montreal
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Juniper Networks, Lenovo, NetApp, Oracle.
• Data Center Construction Contractors & Sub-Contractors: Arup, AECOM, Black & Veatch, Computer Room Services Corporation (CRSC), DPR Construction, Ehvert, EllisDon, First Gulf, Karbon Engineering, PCL Construction, Salute Mission Critical, Turner Construction, Urbacon, and WZMH Architects.
• Support Infrastructure Providers: ABB, Alfa Laval, Arctic Chiller Group, Caterpillar, Chatsworth Products, ClimateWorx, Cummins, CoolIT Systems, Dataprobe, Delta Electronics, Eaton, Generac Power Systems, Johnson Controls, KyotoCooling, Legrand, Mitsubishi Electric, Panduit, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, STULZ, Siemens, Toshiba, Trane, Vertiv.
• Data Center Investors: Amazon Web Services (AWS), Cologix, Compass Datacenters, Digital Realty, Equinix, eStruxture Data Centers, Google, Microsoft, OVHcloud, STACK Infrastructure, Urbacon Data Centre Solutions and Vantage Data Centers.
• New Entrants: Gatineau Data Hub (GDH), QScale, Telehouse.