Data Centers in London
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London, Canada – Stable Hub for Southern Ontario
Executive Summary
London, Canada provides a stable and cost-effective data center market for businesses requiring a presence in Southwestern Ontario. It is an ideal location for disaster recovery sites, secondary deployments supporting the Toronto-Windsor corridor, and serving local academic, healthcare, and manufacturing industries. This market ensures reliable uptime and predictable operational costs away from the premium pricing of primary hubs.
London, Canada: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is available via network extension to the primary hub in Toronto. |
| Power Cost | CAD $0.12–$0.15/kWh | Based on provincial industrial averages as of September 2025. |
| Disaster Risk | Low (2.7/10) | Minimal exposure to significant natural hazards; as of September 2025. |
| Tax Incentives | No | Canada does not offer specific data center tax abatement programs. |
| Sales Tax | 5% GST + Provincial Tax | Federal Goods and Services Tax plus provincial sales tax; as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a secondary market, London's carrier density is modest, with 1 main provider available in the primary colocation facility as of September 2025. True carrier neutrality requires extending connectivity to primary hubs.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within London as of September 2025. Organizations achieve low-latency cloud access by procuring private network connections (PNI or wave) to the rich ecosystem of on-ramps in Toronto.
Internet Exchange Points (IXPs): The local London Internet Exchange (LONIX) facilitates regional traffic exchange, which can improve performance and reduce transit costs for peers. Most national and international peering occurs in Toronto.
Bare Metal: Bare metal server options are available, typically from providers with a national presence who can deploy hardware in the region. Providers like OVHcloud and Leasebeweb serve the broader Canadian market.
Power Analysis
Average Cost Of Power: Industrial electricity rates in London are estimated between CAD $0.12–$0.15/kWh as of September 2025. This competitive pricing, combined with a reliable grid, helps maintain predictable operational expenditures for compute-heavy workloads.
Power Grid Reliability: The power grid, managed by Ontario's IESO, is well-engineered and reliable. The provincial power mix is dominated by hydro and nuclear sources, contributing to grid stability and predictable supply for commercial and industrial users.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in London are strategically located to serve the region's key industries, including advanced manufacturing, academic research at Western University, and a large healthcare sector. This proximity enables low-latency applications for these core local enterprises.
Regional Market Reach: London is an effective digital hub for the entire Southwestern Ontario corridor, reaching a population of several million from Kitchener-Waterloo to the Windsor-Detroit border crossing.
Tax Advantage For Data Centers: Canada does not currently offer specific federal or provincial tax incentives for data center development or tenancy. The financial advantage stems from operating in a stable economic environment with clear regulatory frameworks, rather than from direct tax credits.
Natural Disaster Risk
London, Canada has a low overall natural disaster risk profile, with an INFORM score of 2.7 out of 10 as of September 2025. The region is not prone to catastrophic events, which enhances its suitability for critical infrastructure and disaster recovery sites.
Key environmental risks include:
- River Flood: The highest individual risk factor for the area.
- Earthquake: Low to moderate seismic risk.
- Drought: A minor consideration.
- Tropical Cyclone: Very low risk of impact from remnant storm systems.
