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Canada Data Center Market Size

The Canada Data Center Market is experiencing significant growth, driven by the increasing demand for data processing due to the rising use of IoT platforms across various sectors such as manufacturing and agriculture. This growth in data consumption is prompting the need for more data centers, particularly tier 4 facilities, which offer superior bandwidth, low latency, and enhanced connectivity. These data centers are essential for companies to meet their expanding business needs, optimize operations, and improve service delivery. The market's expansion is reflected in its increasing capacity and revenue generation, highlighting the critical role of data centers in supporting the digital transformation across industries in Canada.

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Market Size of canada data center Industry

Canada Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 0.75 Thousand MW
svg icon Market Volume (2029) 1.16 Thousand MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 8.97 %
svg icon Fastest Growing by Tier Type Tier 4
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Canada Data Center Market Analysis

The Canada Data Center Market size is estimated at 0.75 thousand MW in 2024, and is expected to reach 1.16 thousand MW by 2029, growing at a CAGR of 8.97%. Further, the market is expected to generate colocation revenue of USD 3,470.3 Million in 2024 and is projected to reach USD 5,332.8 Million by 2029, growing at a CAGR of 8.97% during the forecast period (2024-2029).

USD 3,470.32 Million

Market Size in 2024

USD 5,332.8 Million

Market Size in 2029

11.1%

CAGR (2017-2023)

9.0%

CAGR (2024-2029)

IT Load Capacity

754.6 MW

Value, IT Load Capacity, 2024

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The IT load capacity of the data center market will have steady growth and is expected to reach 1,159.6 MW by 2029. Canada is investing in IoT, AI, and other technologies, resulting in more data generation thus creating market demand.

Total Raised Floor Space

Sq. Ft.3.77 M

Volume, Raised Floor Space, 2024

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The total raised floor area of the country is expected to increase to 5.3 million sq. ft by 2029. Canadian government investment in expansion of fiber connectivity across the country would increase the demand for DC facilities.

Installed Racks

188,645

Volume, Installed Racks, 2024

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The number of installed racks is expected to reach 289,890 units by 2029. Quebec is expected to house the maximum number of racks by 2029. The availability of renewable energy, cheap electricity, data laws would grow DC facilities.

# of DC Operators & DC Facilities

44 and 113

Volume, DC Facilities, 2024

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Good connectivity, growing demand for IoT, and increasing government incentives for land and tax are some factors that have triggered the growth of data center facilities in Canada.

Leading Market Player

22.7%

Market Share, Vantage Data Centers LLC, LLC

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Vantage Data Centers LLC led the market in 2023 with a share of 22.7% and an operational capacity of 158 MW, followed by companies such as Stack Infrastructure at 20.5% with an operating capacity of 129.9 MW.

Tier 3 data center accounted for majority share in terms of volume in 2023, Tier 4 is fastest growing segment

  • Increased use of IoT platforms by varying sectors, such as manufacturing, agriculture, and cities, has contributed to the growing data consumption, which has triggered the demand for data centers in Canada.
  • For instance, out of the 189,874 farms in Canada, autosteer equipment are currently used by 27%, GPS mapping by 13%, drone usage at 3.5%, and robotic milkers at 1.2%. Agriculture IoT may help farmers increase their profitability by providing real-time insights about the crops.
  • Similarly, IoT platforms used in the manufacturing sector may help companies improvise supply chain processes and increase their profitability. As IoT platforms have started gaining traction, these huge amounts of generated data may require an increasing number of servers to process them faster.
  • Since tier 4 data centers offer higher bandwidth speed, low latency, better connectivity, disaster recovery options and others, most companies opt for tier 4 data centers. These data centers help companies cater to their growing business requirements, optimize efficiency, and offer better services to the consumer. Tier 4 data centers are anticipated to record a CAGR of 22.68%, which is quite higher than the growth of tier 3 at 5.79% and tier 1&2 at 0.76%.
Canada Data Center Market

Canada Data Center Industry Segmentation

Ontario, Quebec are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • Increased use of IoT platforms by varying sectors, such as manufacturing, agriculture, and cities, has contributed to the growing data consumption, which has triggered the demand for data centers in Canada.
  • For instance, out of the 189,874 farms in Canada, autosteer equipment are currently used by 27%, GPS mapping by 13%, drone usage at 3.5%, and robotic milkers at 1.2%. Agriculture IoT may help farmers increase their profitability by providing real-time insights about the crops.
  • Similarly, IoT platforms used in the manufacturing sector may help companies improvise supply chain processes and increase their profitability. As IoT platforms have started gaining traction, these huge amounts of generated data may require an increasing number of servers to process them faster.
  • Since tier 4 data centers offer higher bandwidth speed, low latency, better connectivity, disaster recovery options and others, most companies opt for tier 4 data centers. These data centers help companies cater to their growing business requirements, optimize efficiency, and offer better services to the consumer. Tier 4 data centers are anticipated to record a CAGR of 22.68%, which is quite higher than the growth of tier 3 at 5.79% and tier 1&2 at 0.76%.
Hotspot
Ontario
Quebec
Rest of Canada
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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Canada Data Center Market Size Summary

The Canada Data Center Market is experiencing significant growth, driven by the increasing adoption of IoT platforms across various sectors such as manufacturing, agriculture, and urban development. This surge in data consumption necessitates the expansion of data center infrastructure to accommodate the growing demand for data processing and storage. The market is characterized by a shift towards tier 4 data centers, which offer superior bandwidth, low latency, and enhanced connectivity, making them preferable for companies aiming to optimize efficiency and service delivery. The rise in smartphone usage and the development of smart cities, integrated with IoT, blockchain, and AI technologies, further contribute to the escalating data generation, thereby boosting the demand for data centers in Canada.

The market landscape is fragmented, with major players like Beanfield Technologies Inc., Cyxtera Technologies, Digital Realty Trust Inc., Equinix Inc., and Sungard Availability Services LP holding significant shares. Strategic partnerships and acquisitions, such as Cologix's collaboration with Console Connect and eStruxture's acquisition of Aptum Technologies' data centers, highlight the ongoing efforts to enhance connectivity and expand data center capabilities across the country. As smartphone ownership and data consumption continue to rise, fueled by the proliferation of apps and online platforms, the demand for data centers is expected to grow, supporting the market's robust expansion trajectory over the forecast period.

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Canada Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Ontario

      2. 1.1.2 Quebec

      3. 1.1.3 Rest of Canada

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

Canada Data Center Market Size FAQs

The Canada Data Center Market is projected to register a CAGR of 8.97% during the forecast period (2024-2029).

Beanfield Technologies Inc. (Beanfield Metroconnect), Cyxtera Technologies, Digital Realty Trust Inc., Equinix Inc. and Sungard Availability Services LP are the major companies operating in the Canada Data Center Market.

Canada Data Center Market Report Snapshots

Canada Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029