Americas Data Center H2 2024 Update

TORONTO AMERICAS ESTABLISHED MARKET

Colo

Hyperscale Self-build

KEY INDICATORS*

MARKHAM

316MW In Operation

37MW 2024 Colo Leasing

YORK

ETOBICOKE

TORONTO CBD

120MW Under Construction

6.9% Colo Vacancy

KITCHENER

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

MARKET OVERVIEW Toronto, while not as large other established Americas markets, is a healthy data center market with a history of sustained growth. This market has historically catered to colocation providers, but Microsoft’s entrance is shifting that dynamic with an 84MW data center under construction, expected to deliver in 2026, and two more planned. The additional 36MW of capacity currently underway belongs to colocation providers. Like many other markets outlined in this report, the vacancy rate is not a true reflection of how tight this market is for occupiers seeking more than 1MW of space. Currently, five data centers in Toronto have availabilities larger than 1MW, the largest at 5.5MW. However, 26 data centers have availabilities of 500kW or less. This has pushed larger occupiers to look to the construction pipeline to meet their capacity needs, as seen in many other markets — 11% of planned capacity has already been preleased. Looking ahead, Toronto may see growth in the AI data center segment as the Canadian government launches the Canadian Sovereign AI Compute Strategy. This initiative, designed to fund public supercomputing infrastructure and AI-enabled data centers, includes a CA$2 billion investment, with CA$700 million earmarked for the data center segment. Toronto-based AI firm Cohere is the first recipient of the fund and will partner with CoreWeave to build a multibillion-dollar AI data center, though its location has not yet been disclosed.

ECOSYSTEM DEVELOPMENTS •

ColoCrossing is launching a new data center in Toronto at 151 Front Street West. This 205,000-sf facility will offer colocation services, dedicated servers, and direct access to major cloud providers like AWS, Google Cloud and Azure. It features diverse power feeds, backup generators, N+1 redundancy and advanced security measures. • The Canadian Nuclear Safety Commission approved an extension for the Pickering Nuclear Generating Station to operate until the end of 2026. Ontario Power Generation also plans to refurbish the plant, potentially extending its lifespan by several decades to help meet the province's growing electricity demand. • Yondr broke ground on its first Canadian facility — a three-story, 27MW data center on a 4.5-acre site in Toronto. Scheduled for completion by mid-2026, the facility will feature a closed-loop cooling design and support cloud computing, AI and future technologies. • The Canadian government is investing CA$240 million ($169 million) to help AI startup Cohere expand its data center AI compute capacity in Toronto. Scheduled to begin operations in 2025, the new data center will use Nvidia GPUs and involve CoreWeave in its construction, aiming to become a cornerstone of Canada's AI infrastructure. • Telehouse launched services from three newly acquired data centers in downtown Toronto. Located at 151 Front Street West, 250 Front Street West, and 905 King Street West, the facilities offer a combined total of over 30MW of carrier-neutral data center space.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW