Canada Data Center Market Size and Share
Canada Data Center Market Analysis by Mordor Intelligence
The Canada data center market size is estimated at USD 13.06 billion in 2026 and is projected to be USD 14.88 billion in 2027, reaching USD 28.18 billion by 2032, growing at a CAGR of 13.62% from 2027 to 2032.
Canada's AI and cloud-service demand is widening the opportunity for colocation and dedicated computing facilities. Clean-power incentives can improve the economics of eligible electricity assets, while network charges and specialized labor requirements can constrain delivery. Operator strategies combine planned campus additions, signed customer commitments, and adaptations proposed for existing sites. Large AI campuses depend on sizable grid connections, so power access governs when planned capacity can become usable. For Quebec colocation, hydro-backed supply supports low-carbon positioning, while Alberta developers face network commitments that constrain capacity expansion.
Key Report Takeaways
- By data center size, large facilities led with a 34.01% Canada data center market share in 2026 and are forecast to be the fastest-growing segment, with a CAGR of 14.63% from 2027 to 2032.
- Tier type was led by Tier 3 with an 81.11% share of Canadian data-center facility spending in 2026, while Tier 4 is forecast to grow fastest at a CAGR of 15.15% from 2027 to 2032.
- Colocation led the data-center type category with a 90.73% share of the Canada data center market size in 2026, while hyperscale/self-built facilities are forecast to grow fastest at a CAGR of 16.28% from 2027 to 2032.
- Among end users, IT and ITES held the largest share of Canadian data-center facility spending at 27.88% in 2026, whereas BFSI is forecast to be the fastest-growing segment, with a CAGR of 16.01% from 2027 to 2032.
- The hotspot breakdown was led by Rest of Canada, with a 39.39% share of nationwide facility spending in 2026, while Quebec is forecast to grow fastest at a CAGR of 15.14% from 2027 to 2032.
- Across individual geographies, Ontario led with a 35.72% share of national data-center facility spending in 2026, and Quebec is forecast to grow fastest at a CAGR of 15.14% from 2027 to 2032.
Note: Market numbers in this report are based on Mordor Intelligence's proprietary estimation framework, which combines nine months of actuals with Q4 projections for base year 2026.
Market Trends and Insights
Drivers Impact Analysis of Canada Data Center Market*
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Surge in cloud service adoption and hyperscale expansions | +8% | Nationwide | Medium term (2-4 years) |
| Rising data consumption from 5G and video streaming | +4.8% | Nationwide | Short term (≤ 2 years) |
| Government green energy incentives for data centers | +1.4% | Nationwide | Medium term (2-4 years) |
| Carbon credit monetization via hydro and wind power | +1% | Province of Alberta | Medium term (2-4 years) |
| Cross-border data sovereignty demand from U.S. enterprises | +0.2% | Nationwide | Medium term (2-4 years) |
| Growing AI and HPC workloads from public sector research | +0.6% | Nationwide | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Surge in cloud service adoption and hyperscale expansions
Cloud-service uptake and new campus construction support different stages of Canadian infrastructure demand. Among Canadian businesses using AI to produce goods or deliver services, 25.7% reported cloud-service or storage purchases in the second-quarter 2025 survey, compared with 16.1% a year earlier.[1] Respondents described the preceding 12 months, with reference periods varying by response date. On October 1, 2026, Bell Canada and the Government of Saskatchewan reported construction progress at Bell AI Fabric's 300 MW campus in the Rural Municipality of Sherwood. All 4 first-phase buildings were taking shape, with more than 500 people working on site. Rising cloud purchasing among AI-using businesses and the campus construction reflect Canada data center market trends toward greater demand for operated AI capacity, with the Sherwood buildings still under construction.
Rising data consumption from 5G and video streaming
Bell Media's Crave service ended the second quarter of 2026 with 5.07 million subscriptions, up 23% year over year. Crave direct-to-consumer subscribers grew 49% year over year in the second quarter of 2026. Separately, FlexNetworks announced in October 2025 that it would double capacity into the Midwest Internet Cooperative Exchange to support cloud and content traffic. Its Canadian network footprint includes Saskatchewan, Manitoba, and Ontario. Together, subscription growth and the announced exchange expansion support demand in the Canada data center market for interconnection-rich facilities that connect content providers with their audiences.
Government green energy incentives for data centers
Clean-energy incentives can support data-center expansion through the cost of qualifying electricity assets. In its 2026 Higher scenario, the Canada Energy Regulator projects 100 TWh of Canadian end-use electricity-demand growth from data-center loads between 2023 and 2050. The federal Clean Technology investment tax credit provides a refundable 30% credit for eligible investment, subject to claimant and property requirements.[2] Natural Resources Canada's guide covers the eligibility of photovoltaic electrical generation equipment. Qualifying equipment must be new, be situated in and intended exclusively for use in Canada, and be acquired and available for use from March 28, 2023, through December 31, 2034. The credit can lower qualifying clean-generation capital costs, improving supply economics for developers pairing new electricity assets with large computing loads.
Carbon credit monetization via hydro and wind power
Renewable-power economics can reflect environmental value alongside the sale of electricity. Alberta permits wind-power projects started in 2002 or later to generate emission offsets under approved protocols when they satisfy regulation and offset-system requirements. Qualifying projects cannot be TIER large-emitter or opt-in facilities, or receive recognition for the same electricity production under another offset system or scheme. On February 26, 2026, TransAlta entered into an MOU with Canada Pension Plan Investments and Brookfield for data-center development at Keephills in Parkland County, Alberta. TransAlta was the exclusive site and power provider, with development subject to regulatory approvals and definitive agreements. The proposed computing load creates a power-supply opportunity that could support Canada data center market growth, while wind-offset eligibility offers a separate potential revenue component confined to qualifying generation.
Restraints Impact Analysis of Canada Data Center Market*
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High power costs outside hydro-rich provinces | -1.2% | Sturgeon County, Alberta | Short term (≤ 2 years) |
| Limited skilled data center workforce availability | -0.8% | Nationwide | Medium term (2-4 years) |
| Lengthy permitting over Indigenous land consultations | -0.3% | Province of Alberta | Medium term (2-4 years) |
| Rising insurance premiums for crypto-focused facilities | -0.2% | Nationwide | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
High power costs outside hydro-rich provinces
Transmission and connection charges add a separate infrastructure hurdle to the economics of high-load computing facilities. In July 2026, the Government of Alberta reported an AESO bill-calculator estimate of annual transmission fees of about CAD 196.8 million (USD 139.5 million) for Meta's planned Sturgeon County campus. The estimate assumed 970 MW of demand transmission service, a 90% load factor, and AESO's default pool price, with Meta's connection costs separate. This combines a recurring network expense with an initial connection commitment. The projected transmission burden can reduce the financial room for adding computing capacity before electricity-energy costs enter the calculation.
Limited skilled data center workforce availability
Scarcity in a narrow connectivity trade can constrain an otherwise well-supplied data-center build. In 2026, Amazon Web Services Inc. (AWS) reported a shortage in Canada of technicians who can properly splice optical fibers. Fusion splicing joins 2 optical fibers and supports fast, reliable data transmission. Limited access to this skill can therefore complicate the connection work needed to make computing capacity usable. AWS, Collège de Bois-de-Boulogne, and Sumitomo Electric Lightwave delivered a 2-day fiber-optic fusion-splicing workshop in Montréal on May 5 and 6, 2025. Completing connectivity work under that skill constraint carries a scheduling and labor-cost risk for developers in the Canada data center industry.
*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.
Canada Data Center Market Segment Analysis
By Data Center Size:
Large Facilities Combine Scale and Staged DevelopmentLarge facilities accounted for a 34.01% share of the Canada data center market size in 2026 and are forecast to grow at a CAGR of 14.63% from 2027 to 2032, making them the largest segment and the fastest-growing segment. Yondr broke ground in January 2025 on a 3-story, 27 MW data center in Toronto, its first Canadian development. The project used a 4.5-acre site.
Bell Canada announced a 300 MW data center in the Rural Municipality of Sherwood, Saskatchewan, in March 2026, with a first stage expected in the first half of 2027. In September 2026, Bell and the Government of Saskatchewan announced a nonbinding MOU for phased development of up to 900 MW of additional capacity. That expansion depended on commercial arrangements, permits, approvals, and customer demand and commitments. Large-facility operators thus face separate delivery decisions for an initial stage and a conditional expansion, rather than gaining the full proposed campus as immediately usable capacity.
By Tier Type:
Delivered Capacity and Government Workloads Shape DemandTier 3 accounted for 81.11% of the Canada data center market share by facility spending in 2026, making it the largest segment. The Tier 3 55H facility in Brampton, owned by Grain Management and operated by Core Data Centres, delivered its first 5 MW of capacity in 2025. The expansion was designed to add 20 MW for high-performance and AI-optimized computing, and the facility used hydro-sourced energy. The first delivery covered only part of the designed expansion, so buyers needing the full planned scale would depend on later stages.
Tier 4 is forecast to be the fastest-growing segment, with a CAGR of 15.15% from 2027 to 2032. Ontario's FY2024-25 modernization included migration of ministry and agency solutions to the Guelph Data Centre, supplemented by cloud hosting. The facility received Tier IV design, constructed-facility, and Gold operational-sustainability certifications from Uptime Institute. The model gives provincial ministries and agencies a shared facility destination while preserving cloud hosting as a complement, so consolidating selected solutions can support demand for a higher-tier physical site.
By Data Center Type:
Colocation Scale and Dedicated AI Development DivergeColocation represented a 90.73% Canada data center market share in 2026, making it the largest segment. On September 18, 2025, Cologix reported operating 22 data centers across Montréal, Toronto, and Vancouver, with 1.06 million square feet of space and 94 MW of power in its Canadian portfolio. Cologix's colocation and interconnection services provide a commercial channel for customers seeking externally supplied hosting infrastructure. That footprint lets Cologix host a customer's workloads at several metro sites within one provider's Canadian portfolio.
Hyperscale/self-built facilities are forecast to be the fastest-growing segment, with a CAGR of 16.28% from 2027 to 2032. Meta broke ground on its first Canadian data center, a planned 1 GW facility optimized for its AI workloads in Sturgeon County, Alberta, on July 8, 2026. The project concentrates one operator's planned computing infrastructure at a dedicated Canadian site, connecting the application directly with the facility development. Capacity built for an owner's own workloads is added outside the leased-space business that colocation providers serve, so self-built growth does not depend on provider leasing.
By End User:
Technology Platforms Lead as Financial Workloads MigrateIT and ITES was the largest segment, accounting for 27.88% of data-center facility spending in 2026. For the quarter ended June 30, 2026, HIVE Digital Technologies Ltd. reported an approximately USD 225 million, 3-year GPU cloud agreement between its subsidiary BUZZ HPC and Bell AI Fabric supporting Cohere. It covered deployment of 2,304 NVIDIA GB200 NVL72 GPUs, with BUZZ providing the GPU cloud layer and Bell providing data-center capacity and connectivity. Cohere is the enterprise AI platform user supported by the agreement. Bell's capacity and connectivity form the facility layer beneath BUZZ's GPU cloud service, connecting specialized AI use to demand for physical hosting.
BFSI is forecast to be the fastest-growing segment, with a CAGR of 16.01% from 2027 to 2032. In June 2025, Atos completed a data-center migration for IGM Financial Inc., a Canadian wealth and asset management company, to Microsoft Azure and Google Cloud Platform. The completed migration shows a financial-services workload shifting from its previous data-center environment to 2 public clouds. Moving workloads from institution-owned sites to public cloud shifts facility-capacity buying to cloud providers, making hosted platforms an intermediary between financial institutions and facility operators.
By Hotspot:
Western Interconnection and Quebec Campus Expansion AdvanceRest of Canada was the largest hotspot segment, with a 39.39% share of nationwide facility spending in 2026. Cologix announced its acquisition of DataHiveOne in downtown Calgary in October 2025, along with most of DataHive's colocation and interconnection assets. The carrier-neutral facility housed over 30 networks, including the YYCIX internet exchange. It offered enterprises, carriers, and cloud service providers direct access to global networks. The Calgary carrier hotel lets Cologix serve western enterprises and cloud providers through an established concentration of network connections.
Quebec is forecast to be the fastest-growing hotspot segment, with a CAGR of 15.14% from 2027 to 2032. On June 4, 2026, QScale reported construction was well underway on Building B at its Q01 campus in Lévis. The CAD 700 million (USD 503.7 million) project was planned to add 60 MW of IT capacity for AI and high-performance computing workloads. Building B, under construction as of June 4, 2026, was planned to let Q01 host those workloads at much greater scale.
Geography Analysis
Ontario Data Center Market
Ontario accounted for 35.72% of the Canada data center market size in 2026, making it the largest geography. A 2025 Independent Electricity System Operator report counted approximately 100 data centers in the province. As of December 31, 2025, Equinix reported its Toronto TR6 phase 3 project under construction, targeting a Q3 2027 opening with 1,075 sellable cabinets and USD 123 million in total project capex. Buyers seeking TR6's additional sellable space would therefore depend on a future opening, even in a province with an established facility base.
Quebec Data Center Market
Quebec is forecast to be the fastest-growing geography, with a CAGR of 15.14% from 2027 to 2032. In March 2026, Cologix reported its AI-ready MTL8 colocation facility in Technoparc Montréal, an aerospace and technology hub, was in service and would deliver 21 MW of capacity. La Caisse provided debt financing to support Cologix's continued investment in the site. Renewable hydroelectricity powers MTL8, giving Cologix a low-carbon electricity basis for its AI-ready colocation offer.
In British Columbia, BCE reported Bell's Mission Flats facility in Kamloops operational from June 2025, with Groq AI inference live. QScale's Q01 campus in Lévis provides AI colocation with 114 MW of protected customer IT load. In Alberta, GLJ Ltd. identified 22 operating facilities as of March 26, 2025, in a count focused on publicly identifiable colocation, hosting, and telecommunications sites. CANIX provides colocation and peering at EXA Edge DC Halifax for networks in the Atlantic provinces, while Bell plans AI data-center capacity by converting a former protein-processing facility in the Winnipeg/Rosser area of Manitoba. The local buying decision differs between access to live AI inference in Kamloops and peering for Atlantic networks in Halifax.
Regulatory Framework and Outlook
The comparison covers the selected jurisdictions of Canada and Ontario from the perspective of a commercial data-center operator handling personal information and expanding grid-connected facilities. Federal privacy duties affect covered commercial handling of personal information, including cross-border flows, while substantially similar provincial laws generally govern in-province activity. Ontario's Protect Ontario by Securing Affordable Energy for Generations Act, 2025 authorizes criteria for data centers connecting or reconnecting to the electricity grid.
Regulatory Table of Canada Data Center Market
| Decision factor | Canada | Ontario |
|---|---|---|
| Primary authority | Office of the Privacy Commissioner of Canada | Ministry of Energy and Mines |
| Key instruments or direction | Personal Information Protection and Electronic Documents Act (PIPEDA); Bill C-36 introduced June 15, 2026 and at second reading on October 21, 2026 | Protect Ontario by Securing Affordable Energy for Generations Act, 2025; proposed connection assessment and separate rate class |
| Commercial effect | Privacy compliance for covered personal-information services | Proposed project assessment and Industrial Conservation Initiative exclusion for covered new facilities |
| Current policy attractiveness | Medium | Medium |
| Future direction of policy attractiveness | No change | Hardening |
| Source: Mordor Intelligence | ||
Canada's medium rating and unchanged outlook reflect PIPEDA staying operative while its proposed replacement, Bill C-36, was at second reading on October 21, 2026. The bill would require transferring organizations to ensure equivalent protection, while providers would mainly owe safeguards and recordkeeping unless they used information for another purpose. Ontario's consultation on the connection-assessment and rate-class proposals closed September 12, 2026. For an operator expanding grid-connected facilities, Ontario's medium rating and hardening outlook reflect proposed additional assessment and potential Industrial Conservation Initiative exclusion for covered new data centers.
Value Chain Stages
The comparison follows facility-service delivery from colocation provisioning through interconnection and operating support. Bell Wholesale supplies cabinets or cages with space, power, cooling, and interconnection in major Canadian centers. Cologix offers cloud-onramp connections across its Montréal data-center network. These activities give operators commercial roles in hosting equipment and connecting it to external services.
Value Chain Analysis Table of Canada Data Center Market
| Primary activity | Key participants | Value capture | Bottleneck | Resilience response |
|---|---|---|---|---|
| Colocation provisioning | Colocation providers such as Bell Canada, eStruxture Data Centers Inc. | Colocation service sales | Matching hosted load to available space, power, and cooling | Stage hosted capacity around the site's utility-service limits |
| Interconnection | Interconnection providers such as Cologix Inc., eStruxture Data Centers Inc. | Connectivity and interconnection service sales | Matching required cloud connections to the selected facility | Confirm required onramp access before placing workloads |
| Operating support | Facility-support providers such as eStruxture Data Centers Inc. | Security and support within operating-service revenue | Divided responsibility for customer equipment and facility incidents | Define escalation ownership across operator and customer |
| Source: Mordor Intelligence | ||||
Physical hosting and connectivity create complementary revenue opportunities, while support extends the operator's role after equipment placement. One operator, eStruxture, provides colocation, connectivity, security, and support services. A customer buying both services from one operator concentrates its exposure to recovery performance, so incident ownership must span hosting and connectivity.
Competitive Landscape
Market Concentration
The industry is moderately fragmented, combining international campus developers with national platforms and local interconnection providers. Vantage Data Centers LLC develops hyperscale campuses, and Equinix Inc. operates data centers and completed land acquisitions across 6 metros, including Toronto, in 2025. The supplier mix includes eStruxture Data Centers Inc., a Canadian facility provider, LES.NET (1996) INC., which manages Winnipeg's Manitoba Internet Exchange, and IREN Limited, which owns and operates Canadian computing sites. Competition consequently depends on site positions and access to network ecosystems, giving several supplier types a role in serving computing demand.
Campus expansion and anchor-customer agreements represent different ways to develop a capacity proposition. In February 2025, Vantage announced QC24 as the planned fourth facility on its Quebec City campus. In May 2026, eStruxture announced that CoreWeave had signed as anchor tenant for part of Phase 1 at CAL-3 in Rocky View County, in the Calgary region. A campus addition enlarges an operator's planned offer, while an anchor agreement supplies a direct commercial commitment for a specified portion of capacity. The signed tenancy reduces eStruxture's exposure to finding buyers for the contracted portion of Phase 1.
Technology adaptation at existing Canadian sites provides another competitive path where an operator can use its established physical platform. IREN's FY25 update identified 160 MW of site capacity in British Columbia and reported a transition from Bitcoin-mining hardware to AI Cloud GPUs. In August 2026, IREN said liquid-cooled deployments were planned at Mackenzie, Canal Flats, and Prince George during 2027 to use power headroom at existing sites. IREN's plan would draw added AI capacity from existing-site power headroom, whereas Vantage and eStruxture proposed new campus buildings, making site conversion a distinct way to compete for additional computing workloads.
Canada Data Center Industry Leaders
-
Vantage Data Centers LLC
-
Equinix Inc.
-
eStruxture Data Centers Inc.
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LES.NET (1996) INC.
-
IREN Limited
- *Disclaimer: Major Players sorted in no particular order
Canada Data Center Market Companies Covered in this Report
- Vantage Data Centers LLC
- Equinix Inc.
- eStruxture Data Centers Inc.
- LES.NET (1996) INC.
- IREN Limited
- Keel Infrastructure Corp.
- Compass Datacenters LLC (Brookfield Infrastructure Partners L.P. and Ontario Teachers' Pension Plan Board)
- Urbacon Data Centre Solutions Inc.
- Cologix Inc.
- HIVE Digital Technologies Ltd.
- Amazon Web Services Inc.
- Digital Realty Trust Inc.
- Rogers Communications Inc. - Rogers Business
- Carrier Connex Systems Ltd.
- Bell Canada
- STACK Infrastructure Inc.
- QScale Inc.
- EdgeConneX LLC
Recent Industry Developments in Canada Data Center Market
- Oct 2026: Bell Canada and the Government of Saskatchewan reported construction progress at Bell AI Fabric's 300 MW campus in the Rural Municipality of Sherwood, with structural steel rising and all 4 first-phase building shells taking shape.
- Jul 2026: Meta broke ground on its first Canadian data center, a planned 1 GW facility optimized for its AI workloads in Sturgeon County, Alberta.
Scope and Methodology
| Large |
| Massive |
| Medium |
| Mega |
| Small |
| Tier 1 and 2 |
| Tier 3 |
| Tier 4 |
| Hyperscale/Self-built | ||
| Enterprise/Edge | ||
| Colocation | Non-Utilized | |
| Utilized | Retail Colocation | |
| Wholesale Colocation | ||
| BFSI |
| IT and ITES |
| E-Commerce |
| Government |
| Manufacturing |
| Media and Entertainment |
| Telecom |
| Other End Users |
| Ontario |
| Quebec |
| Rest of Canada |
| By Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| By Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| By Data Center Type | Hyperscale/Self-built | ||
| Enterprise/Edge | |||
| Colocation | Non-Utilized | ||
| Utilized | Retail Colocation | ||
| Wholesale Colocation | |||
| By End User | BFSI | ||
| IT and ITES | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media and Entertainment | |||
| Telecom | |||
| Other End Users | |||
| By Hotspot | Ontario | ||
| Quebec | |||
| Rest of Canada | |||
Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
