Toronto

Demand for wholesale colocation resulted in 36 MW of preleasing in H1 2023.
There are multiple larger inquiries for 50- to 100-MW land sites for wholesale and hyperscale development.
Pricing for transactions under 500 kW are increasing, alongside annual valuation increases of 3% to 5% due to expected inflationary costs.
AI continues to generate buzz, but no major leasing transactions have been announced so far in 2023.

There are few transactions for greenfield development due to scarce land and power supply.
Supply chain issues are complicating space and power delivery time frames, delaying commitments.
Toronto has at least three times more active construction projects than any other North American city.

Stratcap Data Centers and Grain Management purchased a 126,000 sq. ft. data center in Brampton that will be expanded to 27 MW and 215,000 sq. ft.
KDDI entered into a binding agreement to buy Allied REIT’s three data center assets in Toronto for $1.35 billion. The carrier hotel at 151 Front Street West comprises the majority of the value.
Yondr is proceeding with its land acquisition in Markham to build an approximately 25 MW data center with an anchor tenant.
Serverfarm is recapitalizing with Manulife, with the sale of its existing portfolio. This includes the almost fully leased facility at 300 Bartor Rd.

Source: CBRE Research, CBRE Data Center Solutions, H1 2023.

Source: CBRE Research, CBRE Data Center Solutions, H1 2023.

Source: Toronto Hydro.

Source: CBRE Research, CBRE Data Center Solutions, H1 2023.

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