Data Centers in London
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London – A Strategic Failover Hub for Southern Ontario
Executive Summary
London serves as a critical edge location for organizations requiring geographic diversity from the Greater Toronto Area without sacrificing performance. It provides a stable, cost-effective environment for research and industrial workloads while maintaining high-speed paths to major North American hubs.
London: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable performance for North American transit. |
| Direct Cloud On-Ramps | 0 – as of January 2026 | Toronto is the primary on-ramp hub. |
| Power Cost | $0.11/kWh – as of January 2026 | Conservative estimate for industrial rates. |
| Disaster Risk | Low (2.7/10) – as of January 2026 | Very stable geographic profile for uptime. |
| Tax Incentives | No – as of January 2026 | Standard business climate without exemptions. |
| Sales Tax | 13.00% HST – as of January 2026 | Ontario Harmonized Sales Tax. |
Network & Connectivity Ecosystem
London functions as a regional interconnection point, providing reliable paths for traffic moving through the Windsor–Quebec City corridor. It is a sensible alternative for those avoiding the premium costs of downtown Toronto while maintaining high-speed access to major hubs.
Carrier Density & Carrier Neutrality: Carrier count: over 5. As of January 2026, the market supports a mix of national incumbents and regional fiber providers, ensuring competitive transport options for local business.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. As of January 2026, there are no native on-ramps in the city. High-speed private extensions to Toronto are the standard method for accessing AWS, Google Cloud (GCP), or Microsoft Azure.
Internet Exchange Points (IXPs): No major public exchanges are located locally. Peering primarily occurs via the Toronto Internet Exchange (TORIX) to maximize route efficiency and minimize hops to global networks.
Bare Metal: Infrastructure is available through local data center operators and global providers like Hivelocity, offering flexible compute options for localized workloads.
Power Analysis
Ontario’s power landscape is dominated by a mix of nuclear and hydroelectric generation, providing a stable baseline for critical infrastructure.
Average Cost Of Power: $0.11/kWh, as of January 2026. These rates are consistent with industrial averages across Southern Ontario, providing a predictable model for mid-sized deployments.
Power Grid Reliability: The local grid is supported by a multi-substation architecture and a redundant provincial transmission network. It is a well-engineered system that handles the demands of both heavy manufacturing and high-density computing.
Market Access, Business & Tax Climate
London is a specialized hub for healthcare research and advanced manufacturing, offering a lower cost of entry than the Greater Toronto Area.
Proximity To Key Business Districts: Data centers here are located near the 401 corridor, providing quick physical and digital access to Western University and the city's growing life sciences cluster.
Regional Market Reach: A deployment in London effectively serves a population of over 500,000 locally and acts as a gateway for traffic heading into the United States Midwest.
Tax Advantage For Data Centers: The primary financial benefit in London is the significantly lower cost of real estate and local operations compared to the Greater Toronto Area. This allows for more favorable long-term infrastructure investments while maintaining proximity to major markets.
Natural Disaster Risk
London maintains a safe profile for physical infrastructure. The overall risk is rated as Low (2.7/10) as of January 2026, meaning environmental threats to uptime are minimal.
River Flood (7.1): This is the primary concern for the region. Facilities are typically located outside immediate floodplains to ensure continuous operations.
Earthquake (4.8): Minor seismic activity is possible but rarely impacts purpose-built, resilient structures.
Tropical Cyclone (2.3): Large storms occasionally bring heavy rain but typically lose power before reaching this far inland.
Drought (2.2): Minimal impact on cooling operations or local power generation.
Other natural hazards are considered minor or are not listed as material risks for this inland location. Tsunami and coastal flooding risks are not applicable to this market.
