Data Centers in London
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London, Canada – Strategic Hub for Southern Ontario
Executive Summary
London, Canada provides a compelling data center market for organizations requiring a low-risk, cost-effective location to serve Southern Ontario. It is an excellent choice for disaster recovery and secondary deployments, offering geographic separation from the primary Toronto market while maintaining low-latency connectivity. This strategic position ensures high uptime and resilient service delivery for regional business operations.
London, Canada: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, positioned as a secondary Canadian market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access hub is Toronto, reachable via private network extensions. |
| Power Cost | C$0.12 - C$0.16/kWh | Based on Ontario's industrial averages, as of September 2025. |
| Disaster Risk | Low (2.7/10) – as of September 2025 | Minimal exposure to significant natural disasters, enhancing operational stability. |
| Tax Incentives | No | No specific incentives are offered for data center operations or investment. |
| Sales Tax | 5% federal GST + provincial taxes – as of September 2025 | Standard Canadian tax rates apply. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Carrier availability in London is focused, with primary connectivity routed through national providers and regional networks, as of September 2025. While not as dense as Toronto, the market provides sufficient options for redundant, high-performance connectivity suitable for most enterprise and disaster recovery needs.
Direct Cloud On-Ramps There are no direct cloud on-ramps within London as of September 2025, meaning public cloud access is not locally available. Organizations connect to cloud provider networks in the nearest major hub, Toronto, using private line (PNI), wavelength, or other dedicated network services.
Internet Exchange Points (IXPs) The local ecosystem benefits from the London Internet Exchange (LONIX), which facilitates efficient local traffic peering and reduces latency for regional users. For broader peering, most traffic is routed through the major exchanges in Toronto.
Bare Metal Bare metal server solutions are available in the region, often provisioned from providers in the larger Toronto market. Companies like OVHcloud provide accessible bare metal services for compute-intensive workloads.
Power Analysis
Average Cost Of Power Industrial power costs in London typically range from C$0.12 to C$0.16/kWh, as of September 2025. This pricing is competitive and benefits from a grid mix that is primarily composed of hydro and nuclear power, offering a cleaner energy profile than many fossil-fuel-dependent regions.
Power Grid Reliability The power grid supporting London is stable and well-engineered, drawing from Ontario's provincial infrastructure. Data centers in the area are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in London are well-positioned to serve the city's key industries, including healthcare, higher education, manufacturing, and digital media. Proximity to these sectors allows for low-latency support of local business applications and services.
Regional Market Reach London's location along the Highway 401 corridor provides excellent digital access to the entirety of southwestern Ontario, from the Greater Toronto Area to the US border crossing at Windsor-Detroit. This makes it a strategic point for content delivery and application hosting for a significant economic region.
Tax Advantage For Data Centers No specific tax incentives or abatement programs are targeted at data center development in this region. The primary financial advantage is derived from lower operating costs, including real estate and labor, when compared to the Toronto metropolitan area.
Natural Disaster Risk
London, Canada has a Low overall disaster risk profile, with an INFORM Risk score of 2.7 out of 10, as of September 2025. This low-risk environment is a key advantage for critical infrastructure hosting and business continuity planning.
The main natural hazards for the region are:
- River Flood: Scored at 7.1, this is the most significant environmental risk, primarily affecting specific low-lying areas.
- Earthquake: Scored at 4.8, indicating a low but present seismic risk.
- Tropical Cyclone: Scored at 2.3, representing a minimal threat.
- Drought: Scored at 2.2, also representing a minimal threat.
Hazards such as coastal flooding and tsunamis are not relevant due to the city's inland location.
