Intelligent Investment
Toronto
North America Data Center Trends H2 2023
March 6, 2024 4 Minute Read
Colocation Insights
- Leasing was relatively muted in H2 2023.
- Lease pricing may rise alongside increasing requirements, due to limited space supply at the three to 10+ MW tier.
- Major permitting issues impacted preleasing activity from 2022 to H1 2023, potentially causing project delays or cancellations.
Market Trends
- Construction timing and delays are interrupting delivery timelines for major projects.
- The feasibility of a development project has depended on the ability to procure and pre-order generators.
Notable Activity
- Digital Realty’s new developments, expansions and power delivery timelines are strongly progressing.
- OVHcloud plans to expand in Canada with a new data center in Toronto.
- Cologix built a 15-MW data center in Markham, Ontario.
Figure 1: Market Development Information
Figure 2: Market Inventory and Vacancy
Figure 3: Market Fuel Mix
Figure 4: Average Asking Rates
Explore Markets
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Minneapolis is increasingly considered an alternative to Chicago.
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The average power capacity requirement is increasing because there is less available space that can meet end users’ minimum deployment requirements. Power prices are rising in line with this capacity scarcity.
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Publicly traded operators are seeking higher per kW pricing, due to rising capital costs and limited supply.
Related Service
- Property Type
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