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    Canada Data Center Colocation Market

    ID: MRFR/ICT/56747-HCR
    200 Pages
    Aarti Dhapte
    October 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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    Canada Data Center Colocation Market Infographic
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    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.

    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

    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

    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.

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