Intelligent Investment
Toronto
North America Data Center Trends H1 2024
August 19, 2024 4 Minute Read
Colocation Insights
- Leasing activity with CSPs was led by Microsoft in Toronto with approximately 30 MW of commitments and 700 MW of manager services commitments in H1 2024.
- Yondr and Digital Realty began construction on new preleased facilities.
- Lease pricing has increased due to inflation and limited available supply, especially in the 10+ MW tier.
- Availability of built-out space between 4 and 6.5 MW is down to three options.
Market Trends
- Land pricing is stabilizing due to easing inflation and little new industrial development, but key data center sites will continue to see pricing above that of industrial land.
- The feasibility of a development project has been impacted by availability of power in the GTA as developers are now focused on sites with 30 to 100 MW of utility capacity.
- Facilities with chilled water systems have begun costing higher density level deployments of 40 to 75 kW per rack.
Notable Activity
- Telehouse/KDDI is marketing its 6.3 MW of water-cooled availability at 250 Front Street West.
- In a joint venture with CIM, Cologix has placed a new availability of 4 MW in Markham, Ontario.
- Grain and Stratcap announced their expansion of 55 H to include a new 22 MW utility feed in Brampton, Ontario for December 2025.
Figure 1: Market Development Information
Figure 2: Market Inventory and Vacancy
Figure 3: Market Fuel Mix
Figure 4: Average Asking Rates
Explore More Markets
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Data center development is being considered for a 160-acre parcel in Farmington.
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Large blocks of available colocation capacity are increasingly rare, with only small pockets available in many facilities.
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Record-high demand remained unfulfilled due to record-low available supply.
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