Canada Hyperscale Data Center Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 8.96 Billion |
| Market Size (2030) | USD 16.86 Billion |
| Growth Rate (2025 - 2030) | 13.00% CAGR |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Canada Hyperscale Data Center Market Analysis by Mordor Intelligence
The Canada Hyperscale Data Center Market size is estimated at USD 8.96 billion in 2025, and is expected to reach USD 16.86 billion by 2030, at a CAGR of greater than 13% during the forecast period (2025-2030).
The Canadian hyperscale data center market is a cornerstone of the country's digital transformation, driven by the need for advanced computing infrastructure. With the rise of AI workloads, data centers are evolving, positioning hyperscale facilities as essential for supporting next-generation technologies.
In 2024, Ontario and Quebec collectively account for approximately 70% of Canada's data center capacity, with Toronto emerging as the leading hub due to its financial significance and connectivity strengths. The market's growth is propelled by increasing demand for GPU-intensive infrastructure, fueled by the expansion of AI and high-performance computing (HPC) workloads. Enterprises are increasingly outsourcing their infrastructure needs, making the hyperscale colocation segment the largest by data center type. Simultaneously, the Cloud and IT segment dominates the end-user category, reflecting the ongoing shift of enterprise workloads to cloud environments.
Quebec's abundant hydroelectric power provides a sustainable advantage for data center operators aiming to reduce their carbon footprint. Meanwhile, Alberta is positioning itself as a rising hyperscale hub through its AI Data Centres Strategy, targeting over USD 100 billion in investments by leveraging its deregulated electricity market. However, the market faces challenges such as power delivery constraints, which delay development timelines as securing transmission infrastructure and regulatory approvals often takes years.
Canada's Personal Information Protection and Electronic Documents Act (PIPEDA) is reshaping deployment strategies for hyperscale operators by requiring sensitive data to remain within Canadian borders. This regulation has prompted global cloud providers to invest in localized infrastructure instead of relying on U.S.-based facilities. Additionally, the convergence of edge computing with 5G networks is driving demand for smaller, distributed hyperscale facilities in tier-2 cities, expanding the market beyond traditional hubs. The Canadian government's investment of USD 169 million in AI data center capacity highlights the strategic importance of this infrastructure, positioning hyperscale facilities as critical assets for maintaining technological sovereignty and economic competitiveness in the AI-driven era.
Canada Hyperscale Data Center Market Trends and Insights
AI & HPC Workload Boom Spurring GPU-Dense Canadian Capacity
The rapid rise in AI computing needs is reshaping data center design, driving demand for infrastructure tailored to GPU-heavy operations. Hypertec Cloud plans to deploy 100,000 GPUs for AI by early 2025, marking a significant investment in AI-specific computing infrastructure in Canada. This evolution necessitates a reimagining of power and cooling systems, as AI workloads produce thermal densities beyond the capacity of traditional designs. Current ultra-high-density racks consume up to 85 kW, with future projections reaching 200-250 kW (approximately USD 0.14-0.18 per kW). This trend is accelerating the adoption of liquid cooling technologies, with direct-to-chip cooling emerging as a vital solution to manage GPU cluster heat and enhance energy efficiency.
Increasing Investments Towards 5G & 6G Technology Driving Hyperscale Builds
The expansion of advanced telecommunications infrastructure is driving the rapid development of hyperscale data centers across Canada, emphasizing the interdependence between connectivity and computing capabilities. Bell Canada’s implementation of 400G service across its fiber network significantly enhances the capacity required for large-scale data transport in hyperscale facilities. This shift in telecommunications is compelling data center operators to redesign their architectures to manage the growing data traffic from 5G-enabled devices. The adoption of network function virtualization (NFV) within these environments provides a strategic benefit by enabling dynamic allocation of computing resources based on varying network demands. Ottawa’s role as a leader in networking technology innovation is highlighted by Ciena Corporation’s WaveLogic 6 Extreme, which delivers network speeds of up to 1.6 terabits per second, a critical feature for hyperscale data centers requiring high-capacity connections.
By End User: Cloud & IT Leads Capacity Consumption
In 2024, the Cloud and IT segment leads the Canadian hyperscale market, holding approximately 45% of the total capacity. This growth is driven by the expansion of infrastructure by cloud service providers to meet increasing demand. The segment's significance highlights the essential role of cloud platforms in supporting diverse applications and services. Companies such as Microsoft Corporation, Google LLC, and Amazon Web Services, Inc. are making substantial investments in Canadian facilities to enhance general-purpose cloud services and specialized solutions like artificial intelligence and machine learning platforms. The adoption of hybrid and multi-cloud strategies is further accelerating this growth, as businesses require reliable infrastructure in key regions to maintain performance and adhere to compliance standards. Providers are intensifying competition by offering unique capabilities and expanding regional coverage.
The Telecom segment ranks as the second-largest end-user category, driven by the virtualization of network functions and the growing convergence of telecommunications and cloud services. The financial services sector, particularly strong in Toronto due to its position as Canada's financial hub, is the third-largest segment. The Media and Entertainment sector is experiencing rapid growth, fueled by rising demand for content delivery and streaming services. Government agencies are increasingly adopting cloud-first strategies, although stringent security and compliance requirements temper this growth. Manufacturing, E-Commerce, and other end-user segments collectively account for about 20% of the market, with growth rates varying based on industry-specific digital transformation initiatives. The diverse needs of end-users are prompting hyperscale operators to develop tailored facilities and services to meet the unique requirements of different vertical markets.
Edge Computing Roll-Outs in Tier-2 Cities Boosting Regional Demand
Edge computing is extending the reach of hyperscale infrastructure beyond traditional hubs, paving the way for distributed deployments that complement centralized facilities. The rising demand for low-latency processing is driving the establishment of edge data centers in secondary markets, where smaller facilities are strategically positioned closer to end-users to support real-time applications. This distributed model is particularly vital for AI inference workloads, which rely on localized processing for efficiency. Additionally, the integration of edge computing with 5G networks is fostering a mutually beneficial relationship, as enhanced connectivity supports advanced edge applications while generating more data requiring immediate processing. This shift is transforming the competitive landscape, with operators adopting hybrid strategies that merge centralized hyperscale facilities with distributed edge deployments. The transition to a distributed infrastructure model is creating significant opportunities for regional providers, who can leverage their local expertise to meet the growing demand for edge computing solutions.
Competitive Landscape
The Canadian hyperscale data center market is moderately concentrated, with around 15 key operators managing approximately 70% of the total capacity. This dominance is particularly evident in the hyperscale colocation segment, where established players gain advantages through economies of scale and network effects. The market comprises a mix of global companies, including Equinix, Inc. and Digital Realty Trust, Inc., alongside domestic firms like eStruxture Data Centers Inc. and Cologix, Inc., which leverage local expertise. As the market matures, operators are increasingly focusing on specific customer needs or technical niches. A significant consolidation occurred when Equinix, Inc. acquired Bell Canada's data centers in 2020, which reduced competition while enhancing service standards and options for end-users.
Operators are shifting their strategies toward advanced technical capabilities and diverse service offerings to attract high-value workloads such as artificial intelligence and analytics. Liquid cooling technologies have become a critical differentiator, enabling support for high-density deployments. The competitive landscape is also being reshaped by new entrants specializing in AI infrastructure, including GPU-focused cloud providers, who are challenging established players. For instance, Hut 8 Mining Corp. transitioned from cryptocurrency mining to AI-focused data centers, utilizing its existing infrastructure and power agreements to support GPU-intensive workloads. Opportunities remain in emerging regional markets and specialized applications, particularly in edge computing and industry-specific solutions. The market's growth is further driven by significant capital investments, reflecting the strategic importance of data center infrastructure in the AI era.
Canada Hyperscale Data Center Industry Leaders
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Amazon Web Services, Inc. (AWS)
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Microsoft Corporation
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Google, Inc.
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Equinix Inc.
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Digital Realty Trust
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: Vantage Data Centers announced a CAD 500 million (USD 353 million) investment to expand its facility in Québec, developing QC24, the fourth data center on its campus. This expansion will add 32MW of IT capacity, bringing the total to 86MW, and is driven by demand for sustainable data centers, aligning with LEED Gold certification standards.
- April 2025: Related Companies launched Related Digital, a data center development platform with a USD 45 billion pipeline, focusing on AI and cloud hyperscale technology. Its first North American project is a 64-megawatt data center in Ontario, Canada, set to be delivered to a leading hyperscale customer. The firm has a robust pipeline of over 5 gigawatts of power planned for the U.S. and Canada
- March 2025: The Canadian government announced an investment of CAD 240 million (USD 169 million) to support Toronto-based AI startup Cohere in expanding its data center AI compute capacity. This investment is part of a broader CAD 2.4 billion Canadian Sovereign AI Compute Strategy, with a state-of-the-art AI data center expected to begin operations in 2025
Canada Hyperscale Data Center Market Report Scope
Hyperscale data centers, also known as Enterprise Hyperscale facilities, are large-scale infrastructures owned and managed by the companies they support. These centers deliver a wide range of scalable applications and storage services to meet the needs of individuals and businesses. Designed for efficiency, they house thousands of servers alongside critical hardware like routers, switches, and storage disks. To ensure seamless operations, these facilities are equipped with advanced support systems, including power and cooling solutions, uninterruptible power supplies (UPS), and air distribution networks.
The Canada Hyperscale Datacenter Market is Segmented by Data Center Type (Hyperscale Colocation, Enterprise/Hyperscale Self Build), By Service Type (IaaS ( Infrastructure-as-a-Service), PaaS ( Platform-as-a-Service), SaaS( Software-as-a-Service)), By End User (Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce, Other End User). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of USD (millions).
| By Data Center Type | Hyperscale Colocation |
| Enterprise/Hyperscale Self Build | |
| By Service Type | IaaS ( Infrastructure-as-a-Service) |
| PaaS ( Platform-as-a-Service) | |
| SaaS( Software-as-a-Service) | |
| By End User | Cloud & IT |
| Telecom | |
| Media & Entertainment | |
| Government | |
| BFSI | |
| Manufacturing | |
| E-Commerce | |
| Other End User |
| Hyperscale Colocation |
| Enterprise/Hyperscale Self Build |
| IaaS ( Infrastructure-as-a-Service) |
| PaaS ( Platform-as-a-Service) |
| SaaS( Software-as-a-Service) |
| Cloud & IT |
| Telecom |
| Media & Entertainment |
| Government |
| BFSI |
| Manufacturing |
| E-Commerce |
| Other End User |
Key Questions Answered in the Report
How big is the Canada Hyperscale Data Center Market?
The Canada Hyperscale Data Center Market size is expected to reach USD 8.96 billion in 2025 and grow at a CAGR of greater than 13% to reach USD 16.86 billion by 2030.
What is the current Canada Hyperscale Data Center Market size?
In 2025, the Canada Hyperscale Data Center Market size is expected to reach USD 8.96 billion.
What years does this Canada Hyperscale Data Center Market cover, and what was the market size in 2024?
In 2024, the Canada Hyperscale Data Center Market size was estimated at USD 7.80 billion. The report covers the Canada Hyperscale Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Canada Hyperscale Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
