Canada Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 05-Nov-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : IC2422
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Canada Data Center Market Overview
The Canada Data Center Market size was valued at USD 10.26 billion in 2023, and is predicted to reach USD 22.24 billion by 2030, at a CAGR of 11.7% from 2024 to 2030. The Canada data center market, also referred to as the network infrastructure market, encompasses the planning, construction, operation, and upkeep of specialized infrastructure dedicated to hosting computing systems. It comprises various components such as servers, storage systems, and networking gear, providing services such as cloud computing and connectivity solutions. Presently, the industry is witnessing widespread adoption of cloud services, alongside the emergence of edge computing to minimize latency.
Key trends include an emphasis on sustainability, heightened cybersecurity concerns, the integration of hybrid and multi-cloud approaches, and the influence of 5G networks. These trends underscore the industry's response to the growing demand for scalable, efficient, and secure data processing and storage solutions in the era of digital transformation. According to the United States International Trade Commission, the data processing and storage market is projected to expand from USD 56 billion in 2020 to USD 90 billion by 2025.
Rapid Digital Transformation and Application Modernization Propels the Market Growth
Canadian companies are heavily focused on digitalizing their operations to enhance workflow efficiency. A recent survey by the International Data Corporation (IDC) revealed that over 50% of Canadian businesses prioritize application modernization as a key strategic objective. This process involves updating and optimizing older applications to meet current business needs and technology standards. Looking ahead, more than 75% of surveyed Canadian businesses expect application modernization to be a strategic priority within the next two to three years. This trend highlights the increasing importance of data processing and analysis in the digital economy, as businesses aim to improve efficiency, reduce costs, and gain a competitive edge.
Investment by Leading Companies Boosts the Market Growth
The growth of the data center market in Canada is significantly driven by the expansion efforts of prominent companies, showcasing the country's rising status as a pivotal digital hub. For instance, Amazon Web Services (AWS) has launched its second Canadian infrastructure region in Calgary, backed by an ambitious investment plan of USD 17.9 billion, while Microsoft has committed USD 500 million to enhance its cloud computing capabilities in Quebec. These substantial investments by leading tech companies are propelling the growth of Canada's industry that, in turn, bolsters the country's digital economy and fosters innovation. Canada stands out as an attractive destination for network infrastructure companies due to its stable economy, robust infrastructure, and favourable business environment.
According to CloudScene, Canada boasts the second-largest number of the market growth in North America, with a total of 336 facilities, nearly double that of Mexico. Major cities such as Toronto, Vancouver, and Montreal serve as significant hubs for market operations, further enhancing the industry's growth trajectory. This burgeoning sector not only strengthens Canada’s position in the global digital landscape but also creates numerous opportunities for technological advancements and economic development.
High Initial Investment Hinders Market Growth
The data center industry encounters significant challenges, particularly the high initial investment and stringent environmental regulations. Establishing and maintaining network infrastructure requires considerable upfront financial commitments, creating barriers for smaller enterprises and startups. Additionally, ongoing compliance with environmental standards demands continuous investment in energy-efficient technologies hinders the overall Canada data center market growth.
Integration of Edge Computing Presents Lucrative Opportunity for Market Expansion
The integration of edge computing into Canada data center market trends offers significant prospects for the industry's growth. By reducing latency and enabling real-time processing, edge computing supports applications such as the Internet of Things (IoT) and Augmented Reality (AR), reducing the load on centralized cloud data centers while providing scalability and flexibility. This decentralized approach not only improves security by processing sensitive data locally but also aligns with evolving digital landscapes, creating diverse opportunities for network infrastructure providers. Recent investments in startups such as Armada reflect the growing interest in edge computing solutions, indicating a concerted effort to address connectivity challenges and bridge the digital divide.
Competitive Landscape
The key market players operating in the Canada data center industry include Equinix, Cologix , eStruxture Data Centers, Rogers Communications Inc., Vantage Data Centers, Core Data Centres Inc., Centersquare, Amanah Tech Inc., Hut 8, Coloware and others.
Canada Data Center Market Key Segments
By Type
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Colocation
-
Hyperscale
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Edge
-
Others
By Deployment Model
-
On-Premises
-
Cloud
-
Hybrid
By Enterprise Size
-
Large Enterprise
-
Small and Medium Size Enterprise
By End User
-
BFSI
-
IT and Telecom
-
Government
-
Energy and Utilities
-
Other End Users
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 10.26 Billion |
|
Revenue Forecast in 2030 |
USD 22.24 Billion |
|
Growth Rate |
CAGR of 11.7% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
KEY PLAYERS
-
Equinix
-
Cologix
-
eStruxture Data Centers
-
Rogers Communications Inc.
-
Vantage Data Centers
-
Core Data Centres Inc.
-
Centersquare
-
Amanah Tech Inc.
-
Hut 8
-
Coloware
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