Canadian Data Center Market Set to Soar: $12.27B Investment by 2030
Canada's data center market is experiencing remarkable growth, positioning it as a key player in North America's tech landscape. According to Arizton's latest research report, the market is projected to grow at a CAGR of 14.54% from 2024 to 2030, reaching an investment of $12.27 billion by 2030.
Market Overview
The Canadian data center market continues to expand with substantial investments. Toronto and Montreal remain the primary locations for data center operators, but Vancouver and Quebec City are also expected to see increased investments in the near future. The market is characterized by a supportive government policy environment for foreign investors, flexible location choices, and the availability of land across Canada, which encourages greenfield developments.
Key Market Insights
·Market Size: By 2030, the Canadian data center market is expected to reach $12.27 billion in investment, 925 thousand square feet in area, and 246 MW in power capacity.
·Colocation Market: The colocation market size is projected to reach $2.11 billion by 2030.
·Historic and Forecast Periods: The historic period covers 2021-2023, with the base year being 2024 and the forecast period extending from 2025 to 2030.
Regional Developments
Toronto and Montreal continue to be the primary locations for data center operators in Canada, attracting substantial investments. However, cities like Vancouver and Quebec City are expected to see increased investments in the near future. Recent developments include new data centers from Exaion in Quebec and OVHcloud in Toronto. As demand for data center space increases, the area per MW for construction is expected to decrease, while industrial land prices are anticipated to rise over time.
Colocation Data Center Hub
Canada is a leading colocation data center hub in the Americas, with a strong presence of over 100 operating facilities, particularly in Toronto, which hosts a significant portion of the country’s data centers. The market is expected to see further growth with investments from companies like Vantage Data Centers, Qscale, and STACK Infrastructure.
The average occupancy rate across Canada's data centers is high, with Toronto's facilities seeing strong demand as well. Revenue generation per MW varies by colocation type, with operators in Canada typically earning substantial revenues from their operations.
AI and AI-Ready Data Centers
Canada is a key player in the advancement of AI technology in the Americas, being the first country to introduce a national AI strategy, the Pan-Canadian AI Strategy. The Canadian government has made significant investments in AI, including a $240 million investment in AI firm Cohere in November 2024 and a $15 million initiative to attract pension funds to invest in AI-powered data centers. Additionally, a $2 billion Canadian Sovereign AI Compute Strategy was launched in December 2024 to enhance AI infrastructure in the country.
The AI data center market in Canada is experiencing rapid growth, with projects like KALiNA Power's agreement with Crusoe to develop AI data centers in Alberta, and Cohere’s plans to develop its own AI data center, operated by CoreWeave. Alberta also introduced its AI Data Centre Strategy in December 2024, planning a massive $100 billion investment over the next five years, focusing on power capacity, sustainable cooling, and economic growth.
Why This Research Matters
This report provides a comprehensive analysis of the Canada data center market, covering key factors such as market size across investment, area, power capacity, and colocation revenue. It offers insights into data center investments by colocation, hyperscale, and enterprise operators, with detailed assessments of current and upcoming facilities across 20+ cities. The research includes forecasts for colocation market revenue (2021-2030), retail and wholesale pricing, and investments in IT, power, cooling, and construction services.
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