As the Canadian data center colocation market surges, it is projected to grow from $1.20 billion in 2023 to $1.85 billion by 2029, reflecting a healthy compound annual growth rate (CAGR) of 7.48%. This growth is fueled by the increasing demand for digital infrastructure, driven by widespread digital transformation, rising data consumption, and government policies that encourage development. In light of the upcoming Global Data Centre & Cloud Expo Canada, scheduled for October 7-8, 2025, at The International Centre in Mississauga, it’s crucial to explore the key drivers, trends, and innovations shaping this rapidly expanding market.
Market Overview: The Current Landscape
Canada’s data center colocation landscape is robust, with over 111 operational colocation data centers, most of which adhere to Tier III standards. Key players in the market include Equinix, Cologix, Digital Realty, and eStruxture Data Centers. The industry continues to thrive, with an average occupancy rate exceeding 85%, which is expected to surpass 87% by 2029 as a result of rising cloud service adoption and accelerated digitalization initiatives across various sectors.
Key Growth Drivers
Several factors are fueling the rapid expansion of the Canadian colocation market:
- Increased Data Center Investments: The surge in big data, artificial intelligence, and IoT applications necessitates significant investments in data center infrastructure.
- Government Incentives: Favorable government policies support the establishment of new facilities and the expansion of existing ones, further driving market growth.
- Sustainability Focus: Canada’s cool climate and abundant renewable energy sources, particularly hydroelectricity, make it an ideal location for sustainable data center operations. Many facilities in the country are now powered by renewable energy, aligning with global sustainability goals.
Upcoming Trends and Innovations
As the market evolves, several emerging trends are poised to reshape the landscape:
- Technological Advancements: The integration of advanced technologies like AI and machine learning is revolutionizing data center operations by enhancing efficiency and reducing operational costs.
- Mergers and Acquisitions: The market is seeing increased consolidation, as demonstrated by Fengate Asset Management’s $1.3 billion acquisition of eStruxture Data Centers in June 2024. This consolidation highlights the competitive nature of the market, where scalability and service diversification are critical to success.
The Role of Global Data Centre & Cloud Expo Canada
The Global Data Centre & Cloud Expo Canada will play a pivotal role in fostering industry growth and innovation. As one of the most anticipated events of the year, it will offer:
- Networking Opportunities: Connect with leading colocation operators and emerging players to explore partnerships and opportunities.
- Knowledge Sharing: Participate in insightful sessions covering market trends, technological advancements, and sustainability initiatives.
- Showcasing Innovations: Discover cutting-edge solutions designed to meet the growing demands of the digital economy.
Conclusion
As we prepare for the Global Data Centre & Cloud Expo Canada, the outlook for the colocation market remains promising, driven by continuous growth, technological innovation, and a strong emphasis on sustainability. With significant investments and a focus on operational efficiency, Canada is positioned to become a major player in the global data center industry. Join us in Mississauga this October to explore the future of digital infrastructure and the trends shaping this dynamic market.
