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    Canada Data Center Colocation Market

    ID: MRFR/ICT/56747-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    Canada Data Center Colocation Market Research Report By Type (Retail Colocation, Wholesale Colocation), By Deployment Type (Cloud, On-Premises) and By End User (BFSI, IT and telecom, Government and Defense, Healthcare)- Forecast to 2035

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    Table of Contents

    Canada Data Center Colocation Market Summary

    The Canada Data Center Colocation market is projected to grow significantly from 4.5 USD Billion in 2024 to 18 USD Billion by 2035.

    Key Market Trends & Highlights

    Canada Data Center Colocation Key Trends and Highlights

    • The market is expected to achieve a compound annual growth rate of 13.43 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 18 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 4.5 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of cloud computing due to increased demand for scalable IT solutions is a major market driver.

    Market Size & Forecast

    2024 Market Size 4.5 (USD Billion)
    2035 Market Size 18 (USD Billion)
    CAGR (2025-2035) 13.43%

    Major Players

    Aptum Technologies, Digital Realty, Rock Networks, eStruxture, CyrusOne, QTS Realty Trust, Interxion, IBM, Daisy Group, Cologix, CentriLogic, Equinix, Hivelocity, Vantage Data Centers, TPX Communications

    Canada Data Center Colocation Market Trends

    The Canada data center colocation market is witnessing significant trends as businesses increasingly seek scalable and efficient IT infrastructure solutions. One key market driver is the rapid digital transformation across various sectors in Canada, fueled by the rise of cloud computing, artificial intelligence, and big data analytics. As organizations look to enhance their operational efficiencies, they are turning to colocation services as a viable alternative to managing on-premises data centers, allowing them to focus on their core business while leveraging external expertise.

    Numerous opportunities exist to be examined, especially regarding regulatory compliance. Canada enforces strict data sovereignty regulations that require businesses to manage and store data domestically. This fosters a setting in which local colocation providers can excel, enabling them to deliver customized solutions that align with regulatory standards while maintaining data security and reliability. Moreover, the drive towards sustainable practices is shaping the market dynamics, with companies placing greater emphasis on green data center initiatives, thereby appealing to customers who seek environmentally responsible choices.

    Recently, there has been a significant trend toward hybrid IT solutions, as companies integrate their on-premises assets with colocation services to enhance flexibility and improve disaster recovery capabilities. The growing prevalence of edge computing is compelling colocation providers to enhance their infrastructures to satisfy the demand for low-latency services in urban areas. Furthermore, the progress in interconnectivity among data centers in Canada has created a competitive environment, resulting in enhanced service offerings and pricing advantages for clients.

    Canada Data Center Colocation Market Drivers

    Market Segment Insights

    Canada Data Center Colocation Market Segment Insights

    Canada Data Center Colocation Market Segment Insights

    Data Center Colocation Market Type Insights

    Data Center Colocation Market Type Insights

    The Canada data center colocation market by type encompasses retail colocation and wholesale colocation. Retail colocation provides customizable space and services targeted primarily at small to medium enterprises, allowing organizations to operate data services without significant capital investment in infrastructure.

    This segment is important as it offers flexibility and various service level agreements tailored to client needs, which has driven demand in a growing digital economy like Canada's. Furthermore, the increased push towards digital transformation across various sectors in Canada has encouraged many businesses to seek cost-effective solutions for data storage and management, thus enhancing the appeal of retail colocation.

    Wholesale colocation caters to larger enterprises and cloud service providers, offering them comprehensive packages that often cover extensive physical space and resources. This segment holds significant importance because it enables scalability and provides companies with greater control over their infrastructure, aligning with the rapid data growth driven by cloud computing and IoT. The trend toward large-scale data center deployments in urban areas, coupled with the robust connectivity options and favorable regulatory environment in Canada, has positioned wholesale colocation as a key player in meeting the demands of large-scale operations.

    Both segments play a crucial role in the expanding ecosystem of the Canada data center colocation market, highlighting a vibrant landscape shaped by technological innovations and changing client needs. The growing emphasis on energy efficiency and sustainability in Canadian data centers underscores the prevailing trends in the market, as these factors become essential to both retail and wholesale colocation services.

    Data Center Colocation Market Deployment Type Insights

    Data Center Colocation Market Deployment Type Insights

    By deployment type, the Canada data center colocation market showcases a notable division primarily between cloud and on-premises solutions. Cloud deployment has emerged as a significant choice among businesses in Canada, primarily due to its flexibility and scalability, enabling organizations to respond swiftly to changing market demands.

    This approach supports various industries, including finance and healthcare, which benefit from enhanced data accessibility and reduced operational costs. On-premises deployment holds a substantial share in specific sectors where data security and compliance are paramount, making it an essential option for enterprises that prioritize control over their IT infrastructure.

    With the anticipated steady rise in Canada's internet traffic, fueled by the growth of digital services and remote work trends, the importance of both deployment types is expected to increase, catering to the distinct needs of various organizations. This duality creates a competitive environment where companies can select the deployment type that best fits their operational objectives while taking advantage of the benefits each option offers.

    Data Center Colocation Market End User Insights

    Data Center Colocation Market End User Insights

    The Canada data center colocation market, by end user, includes domains such as BFSI, IT and telecom, Government and Defense, and Healthcare. The BFSI sector is particularly significant due to the increasing demand for secure and reliable data management solutions, leading to heightened investments in colocation services to ensure regulatory compliance.

    The IT and telecom sectors contribute meaningfully to this market as the need for robust infrastructure to support cloud computing and various technological advancements surges. Government and defense agencies require secure and resilient data management systems, which enhances the importance of specialized colocation services catering to sensitive data handling. The healthcare sector is focusing on modernizing its IT infrastructure, driven by a rise in telemedicine and the need for efficient data storage solutions.

    Get more detailed insights about Canada Data Center Colocation Market Research Report- Forecast to 2035

    Regional Insights

    Key Players and Competitive Insights

    The Canada data center colocation market has witnessed significant growth in recent years as businesses increasingly seek reliable and scalable infrastructure solutions. This market is characterized by the presence of various players offering distinct services tailored to meet the needs of local and international businesses.

    Competition is fierce, driven by the demand for enhanced data security, efficient operations, and the ability to support cloud computing and big data initiatives. As companies strive to establish a strong foothold, they are investing in advanced technologies and expanding their geographic reach. The rise of digital transformation across various sectors has further fueled the growth of colocation services, making the competitive landscape dynamic and continuously evolving.

    Aptum Technologies consistently provides significant value in the colocation sector by upholding a carrier-neutral, secure, and globally interconnected infrastructure, despite the divestment of its Canadian colocation assets in 2021. Currently, its colocation services—offered across 14 data centres in North America and Europe—focus on flexibility and hybrid integration, providing a range of solutions from wholesale cages and retail cabinets to managed rack-unit options.

    These facilities are equipped with ISO 27001, SOC2 Type II, and PCI DSS certifications, complemented by redundant power, cooling, and round-the-clock Smart Hands support, guaranteeing high availability and operational resilience. Aptum’s colocation is strategically integrated with its hybrid cloud and managed infrastructure, facilitating seamless connectivity, unified monitoring, and strong compliance—empowering organizations to optimize both physical and virtual workloads under a single managed solution.

    Digital Realty operates prominently within the Canada data center colocation market, providing a wide range of services that include colocation, interconnection, and data center solutions designed for varying business requirements. The company boasts a strong market presence, bolstered by its extensive portfolio of data centers that are strategically located across key Canadian cities.

    Digital Realty's advanced facilities utilize state-of-the-art technologies to ensure optimal performance and energy efficiency, appealing to businesses keen on innovation. The company is also actively engaged in mergers and acquisitions, which have significantly expanded its capabilities and market reach in Canada. By continually enhancing their service offerings and infrastructure, Digital Realty remains competitive in the landscape, aiming to drive the digital transformation of enterprises across the region.

    Key Companies in the Canada Data Center Colocation Market market include

    Industry Developments

    The Canada data center colocation market has seen significant developments recently, with a surge in demand due to cloud computing and digital transformation trends. Companies like Digital Realty and Equinix are expanding their footprints in major cities such as Toronto and Vancouver to accommodate this growth.

    In March 2021, eStruxture announced the acquisition of all eight Canadian data centers owned by Aptum, comprising two in Montreal, five in Toronto, and one in Vancouver, along with the colocation clientele and relevant personnel. The transaction was finalized at the conclusion of April 2021, resulting in eStruxture increasing its presence to 14 facilities across the country, encompassing more than 600,000 square feet and 100 megawatts of IT capacity.

    Additionally, regulatory support for clean energy initiatives is driving investments toward sustainable infrastructure within the data center sector. Over the last couple of years, Vantage Data Centers has been notable for building new locations to meet rising demand, while CyrusOne has focused on enhancing its services to clients by leveraging advanced technologies.

    Market Segmentation

    Data Center Colocation Market Type Outlook

    • Retail Colocation
    • Wholesale Colocation

    Data Center Colocation Market End User Outlook

    • BFSI
    • IT and telecom
    • Government and Defense
    • Healthcare

    Data Center Colocation Market Deployment Type Outlook

    • Cloud
    • On-Premises

    Report Scope

     
    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 3.65(USD Billion)
    MARKET SIZE 2024 4.5(USD Billion)
    MARKET SIZE 2035 18.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 13.431% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Cogeco Peer 1, Digital Realty, Rock Networks, eStruxture, CyrusOne, QTS Realty Trust, Interxion, IBM, Daisy Group, Cologix, CentriLogic, Equinix, Hivelocity, Vantage Data Centers, TPX Communications
    SEGMENTS COVERED Type, Deployment Type, End User
    KEY MARKET OPPORTUNITIES Growing demand for cloud services, Enhanced edge computing support, Increased regulatory compliance needs, Expansion of renewable energy usage, Rising focus on hybrid IT solutions
    KEY MARKET DYNAMICS increasing demand for cloud services, need for data security, rising energy costs, regulatory compliance requirements, growth of IoT applications
    COUNTRIES COVERED Canada

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    What is the expected market size of the Canada Data Center Colocation Market in 2024?

    The Canada Data Center Colocation Market is projected to be valued at 4.5 billion USD in 2024.

    What is the forecasted market size for the Canada Data Center Colocation Market by 2035?

    By 2035, the market is expected to reach a valuation of 18.0 billion USD.

    What is the compound annual growth rate (CAGR) for the Canada Data Center Colocation Market from 2025 to 2035?

    The market is expected to grow at a CAGR of 13.431% during the period from 2025 to 2035.

    Which segment of the Canada Data Center Colocation Market is projected to have the highest value in 2035?

    The Retail Colocation segment is estimated to be valued at 10.0 billion USD in 2035.

    How much is the Wholesale Colocation segment expected to be valued at in 2035?

    The Wholesale Colocation segment is projected to reach a valuation of 8.0 billion USD by 2035.

    What key companies are leading the Canada Data Center Colocation Market?

    Major players in the market include Digital Realty, Equinix, and Cogeco Peer 1 among others.

    What value does the Retail Colocation segment hold in 2024?

    In 2024, the Retail Colocation segment is valued at 2.5 billion USD.

    What value does the Wholesale Colocation segment hold in 2024?

    The Wholesale Colocation segment is valued at 2.0 billion USD in 2024.

    What are the primary growth drivers for the Canada Data Center Colocation Market?

    The primary growth drivers include rising data consumption and the increasing need for cloud services.

    What impact might the current global economic situation have on the Canada Data Center Colocation Market?

    The current global economic situation is likely to bring both challenges and opportunities to the market.

    1. EXECUTIVE
    2. SUMMARY
    3. Market Overview
    4. Key Findings
    5. Market Segmentation
    6. Competitive Landscape
    7. Challenges and Opportunities
    8. Future Outlook
    9. MARKET INTRODUCTION
    10. Definition
    11. Scope of the study
    12. Research Objective
    13. Assumption
    14. Limitations
    15. RESEARCH
    16. METHODOLOGY
    17. Overview
    18. Data
    19. Mining
    20. Secondary Research
    21. Primary
    22. Research
    23. Primary Interviews and Information Gathering
    24. Process
    25. Breakdown of Primary Respondents
    26. Forecasting
    27. Model
    28. Market Size Estimation
    29. Bottom-Up
    30. Approach
    31. Top-Down Approach
    32. Data
    33. Triangulation
    34. Validation
    35. MARKET
    36. DYNAMICS
    37. Overview
    38. Drivers
    39. Restraints
    40. Opportunities
    41. MARKET FACTOR ANALYSIS
    42. Value chain Analysis
    43. Porter's
    44. Five Forces Analysis
    45. Bargaining Power of Suppliers
    46. Bargaining
    47. Power of Buyers
    48. Threat of New Entrants
    49. Threat
    50. of Substitutes
    51. Intensity of Rivalry
    52. COVID-19
    53. Impact Analysis
    54. Market Impact Analysis
    55. Regional
    56. Impact
    57. Opportunity and Threat Analysis
    58. Canada
    59. Data Center Colocation Market, BY Type (USD Billion)
    60. Retail
    61. Colocation
    62. Wholesale Colocation
    63. Canada
    64. Data Center Colocation Market, BY Deployment Type (USD Billion)
    65. Cloud
    66. On-Premises
    67. Canada
    68. Data Center Colocation Market, BY End User (USD Billion)
    69. BFSI
    70. IT
    71. and telecom
    72. Government and Defense
    73. Healthcare
    74. Competitive Landscape
    75. Overview
    76. Competitive
    77. Analysis
    78. Market share Analysis
    79. Major
    80. Growth Strategy in the Data Center Colocation Market
    81. Competitive
    82. Benchmarking
    83. Leading Players in Terms of Number of Developments
    84. in the Data Center Colocation Market
    85. Key developments
    86. and growth strategies
    87. New Product Launch/Service Deployment
    88. Merger
    89. & Acquisitions
    90. Joint Ventures
    91. Major
    92. Players Financial Matrix
    93. Sales and Operating Income
    94. Major
    95. Players R&D Expenditure. 2023
    96. Company
    97. Profiles
    98. Cogeco Peer 1
    99. Financial
    100. Overview
    101. Products Offered
    102. Key
    103. Developments
    104. SWOT Analysis
    105. Key
    106. Strategies
    107. Digital Realty
    108. Financial
    109. Overview
    110. Products Offered
    111. Key
    112. Developments
    113. SWOT Analysis
    114. Key
    115. Strategies
    116. Rock Networks
    117. Financial
    118. Overview
    119. Products Offered
    120. Key
    121. Developments
    122. SWOT Analysis
    123. Key
    124. Strategies
    125. eStruxture
    126. Financial
    127. Overview
    128. Products Offered
    129. Key
    130. Developments
    131. SWOT Analysis
    132. Key
    133. Strategies
    134. CyrusOne
    135. Financial
    136. Overview
    137. Products Offered
    138. Key
    139. Developments
    140. SWOT Analysis
    141. Key
    142. Strategies
    143. QTS Realty Trust
    144. Financial
    145. Overview
    146. Products Offered
    147. Key
    148. Developments
    149. SWOT Analysis
    150. Key
    151. Strategies
    152. Interxion
    153. Financial
    154. Overview
    155. Products Offered
    156. Key
    157. Developments
    158. SWOT Analysis
    159. Key
    160. Strategies
    161. IBM
    162. Financial
    163. Overview
    164. Products Offered
    165. Key
    166. Developments
    167. SWOT Analysis
    168. Key
    169. Strategies
    170. Daisy Group
    171. Financial
    172. Overview
    173. Products Offered
    174. Key
    175. Developments
    176. SWOT Analysis
    177. Key
    178. Strategies
    179. Cologix
    180. Financial
    181. Overview
    182. Products Offered
    183. Key
    184. Developments
    185. SWOT Analysis
    186. Key
    187. Strategies
    188. CentriLogic
    189. Financial
    190. Overview
    191. Products Offered
    192. Key
    193. Developments
    194. SWOT Analysis
    195. Key
    196. Strategies
    197. Equinix
    198. Financial
    199. Overview
    200. Products Offered
    201. Key
    202. Developments
    203. SWOT Analysis
    204. Key
    205. Strategies
    206. Hivelocity
    207. Financial
    208. Overview
    209. Products Offered
    210. Key
    211. Developments
    212. SWOT Analysis
    213. Key
    214. Strategies
    215. Vantage Data Centers
    216. Financial
    217. Overview
    218. Products Offered
    219. Key
    220. Developments
    221. SWOT Analysis
    222. Key
    223. Strategies
    224. TPX Communications
    225. Financial
    226. Overview
    227. Products Offered
    228. Key
    229. Developments
    230. SWOT Analysis
    231. Key
    232. Strategies
    233. References
    234. Related
    235. Reports
    236. LIST
    237. OF ASSUMPTIONS
    238. Canada Data Center Colocation Market SIZE
    239. ESTIMATES & FORECAST, BY TYPE, 2019-2035 (USD Billions)
    240. Canada
    241. Data Center Colocation Market SIZE ESTIMATES & FORECAST, BY DEPLOYMENT TYPE,
    242. 2035 (USD Billions)
    243. Canada Data Center Colocation
    244. Market SIZE ESTIMATES & FORECAST, BY END USER, 2019-2035 (USD Billions)
    245. PRODUCT
    246. LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    247. ACQUISITION/PARTNERSHIP
    248. LIST
    249. Of figures
    250. MARKET SYNOPSIS
    251. CANADA
    252. DATA CENTER COLOCATION MARKET ANALYSIS BY TYPE
    253. CANADA
    254. DATA CENTER COLOCATION MARKET ANALYSIS BY DEPLOYMENT TYPE
    255. CANADA
    256. DATA CENTER COLOCATION MARKET ANALYSIS BY END USER
    257. KEY
    258. BUYING CRITERIA OF DATA CENTER COLOCATION MARKET
    259. RESEARCH
    260. PROCESS OF MRFR
    261. DRO ANALYSIS OF DATA CENTER COLOCATION
    262. MARKET
    263. DRIVERS IMPACT ANALYSIS: DATA CENTER COLOCATION
    264. MARKET
    265. RESTRAINTS IMPACT ANALYSIS: DATA CENTER COLOCATION
    266. MARKET
    267. SUPPLY / VALUE CHAIN: DATA CENTER COLOCATION MARKET
    268. DATA
    269. CENTER COLOCATION MARKET, BY TYPE, 2025 (% SHARE)
    270. DATA
    271. CENTER COLOCATION MARKET, BY TYPE, 2019 TO 2035 (USD Billions)
    272. DATA
    273. CENTER COLOCATION MARKET, BY DEPLOYMENT TYPE, 2025 (% SHARE)
    274. DATA
    275. CENTER COLOCATION MARKET, BY DEPLOYMENT TYPE, 2019 TO 2035 (USD Billions)
    276. DATA
    277. CENTER COLOCATION MARKET, BY END USER, 2025 (% SHARE)
    278. DATA
    279. CENTER COLOCATION MARKET, BY END USER, 2019 TO 2035 (USD Billions)
    280. BENCHMARKING
    281. OF MAJOR COMPETITORS

    Canada Data Center Colocation Market Segmentation

     

     

     

    • Data Center Colocation Market By Type (USD Billion, 2019-2035)

      • Retail Colocation
      • Wholesale Colocation

     

    • Data Center Colocation Market By Deployment Type (USD Billion, 2019-2035)

      • Cloud
      • On-Premises

     

    • Data Center Colocation Market By End User (USD Billion, 2019-2035)

      • BFSI
      • IT and telecom
      • Government and Defense
      • Healthcare

     

     

     

     

     

     

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