Toronto

Colocation Insights

• For the first time, leasing activity in Greater Toronto totaling 8.6 MW in 2024 was led by AI-related occupiers rather than cloud service providers.
• Approximately 15 to 20 MW of future capacity was preleased in 2024.
• Canadian construction company EllisDon was awarded approximately 170 MW of new construction projects.
• Microsoft and Yondr awarded contracts to EllisDon for their first large-scale data center construction projects.
• Availability of built-out space between 4 and 6.5 MW was limited to three options in Toronto.

Market Trends

• Land pricing for data center development exceeds that for traditional industrial projects due to limited availability of sites near transmission lines with power of 40 MW or more.
• AI requirements are pushing power densities of 50 kW or more per rack, forcing landlords to prepare for the next wave of 130 kW or more that will require chilled water.
• The federal government has committed C$240 million in grant money to the CoreWeave/Cohere partnership in Ontario for a new greenfield development.
• Developers planning data centers with 50 MW or more are considering redeveloping vacant office building sites.

Notable Activity

• CoreWeave and Generative AI startup Cohere announced the largest AI deal in Canadian history to deploy a multibillion-dollar data center in Canada.
• Digital Realty accommodated a U.S. client with 2.6 MW at 371 Gough Road, bringing the facility to 100% leased.
• Kyndryl renewed a data center and office lease of over 100,000 sq. ft. in northeast Toronto.

Figure 1: Market Development Information

Figure 2: Market Inventory and Vacancy

Figure 3: Market Fuel Mix

Figure 4: Average Asking Rates