Share:

Mergers and Acquisitions Drives Data Center Activity in Canada

Randy Borron • 8/4/2019

Activity in the key Canadian data center markets of Toronto and Montreal has focused on the many mergers and acquisitions over the past several months, with both new arrivals and longtime players consolidating their positions.

Data Center Canada MarketBeat Reports Banner

Digital Colony has closed on their acquisition of Cogeco Peer 1 for C$720 million, with plans to divide the business into two units. The first business unit will work on development of the 3,300 kilometers of fiber owned by the company, with the second unit managing the data center portfolio. Cogeco Peer 1 has a leased location at 151 Front alongside owned buildings in Barrie and Montreal.

Cologix completed their acquisition of Metro Optic early in 2019, adding two data centers in Montreal and Toronto to their portfolio. Cologix emphasized the additional benefits beyond data center capacity the transaction provided, including further dark fiber and over 30 new carriers. This deal followed on another large acquisition late in 2018, when Cologix acquired COLO-D and their two facilities in the Montreal area.

American powerhouse Vantage Data Centers has made their debut in Canada, acquiring 4Degrees for C$259 million and gaining two data centers in Montreal and Quebec City. Both buildings offer sizable expansion potential and access to some of the cheapest power in North America.

While vacancy remains a bit higher than expected for both markets, the tide of Bitcoin miners exiting Montreal allows for opportunities for others interested in the connectivity and low power cost available. Four projects are underway across Montreal and Toronto tallying 15 MW of additional capacity, with continued rumors of hyperscale interest driving further interest. Development is thus slightly outpacing the 12 MW of take-up over the past several months.

Outlook for both markets remains positive, with total market size of both cities roughly in line with cities such as Seattle and Boston and much room to grow. We expect further consolidation and investment coming over the remainder of 2019.

Related Insights

Aerial View of Vancouver BC
Article • Hospitality

Development Charges in the Hotel Industry

Hotel development costs have increased significantly in the Greater Toronto Area (GTA) over the last few years. The price of land, scarcity of labour, and increasing development charges have all impacted the cost to construct.
Brian Flood • 8/8/2019
Q2 2017 Perspective report
Research • Investment

Perspective Report: Q2 2017

The desire to own trophy office assets, fueled by strengthening fundamentals in growth markets, continued to nudge CBD office cap rates downwards in Toronto, Ottawa and the Waterloo region during the second quarter of 2017.
8/17/2017
Cold Storage Heating Up Article
Article • Logistics

CALGARY - Is Cold Storage Heating Up?

Cold storage, the storage of any temperature-controlled products, has increasingly become a hot topic in the real estate industry. This is due to the low supply, high demand and growing opportunities associated with these types of facilities.
Jordan LeBlanc • 10/21/2019

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.