Data Centers in Toronto

Toronto – Canada's Premier Connectivity Hub

Executive Summary

Toronto is the primary Canadian hub for finance, media, and technology, making its data center market essential for any organization requiring low-latency access to North American consumers and business partners. With exceptional network density and direct cloud access, Toronto offers a stable, high-performance environment for mission-critical infrastructure, ensuring uptime and speed to market. This market is a top choice for enterprises seeking robust connectivity without the volatility of other Tier 1 locations.

Toronto: At A Glance

Network & Connectivity Ecosystem

Toronto stands as Canada’s undisputed interconnection leader, with a mature and highly competitive ecosystem. The market features 77 data centers and over 51 providers, as of September 2025, ensuring a wide range of options from retail colocation to wholesale deployments.

Carrier Density & Carrier Neutrality With access to over 50 unique network providers, as of September 2025, Toronto's carrier-neutral facilities offer extensive choice. This density drives down costs and improves network resiliency, allowing businesses to create redundant, high-performance network architectures.

Direct Cloud On-Ramps The market has over 9 dedicated cloud on-ramps providing direct, private access to 14 different cloud availability regions. Major public clouds with a dedicated presence include:

• AWS
• Google Cloud (GCP)
• Microsoft Azure
• IBM Cloud
• Oracle Cloud

Internet Exchange Points (IXPs) The Toronto Internet Exchange (TorIX) is one of the largest and most important peering points in North America. Direct access to TorIX within a data center significantly reduces latency and lowers IP transit costs for traffic staying within the region.

Bare Metal Bare metal server options are readily available from multiple providers for workloads requiring dedicated physical hardware. Global providers like Hivelocity and phoenixNAP offer compute and storage solutions in the Toronto market.

Power Analysis

Average Cost Of Power Industrial power costs are estimated to be between C$0.13 and C$0.17/kWh, as of September 2025. This predictable pricing structure is beneficial for long-term financial planning, especially for high-density compute and AI workloads.

Power Grid Reliability The power grid, managed by Hydro One, is reliable and benefits from a diverse generation mix that includes a significant share of nuclear and hydroelectric power. Major data center corridors are supported by redundant substations and well-maintained infrastructure, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in the Greater Toronto Area (GTA) offer low-latency connectivity to Canada's Financial District, home to the nation's largest banks and the Toronto Stock Exchange. Proximity to the growing tech sector in the Toronto-Waterloo Region Corridor is also a key advantage for technology firms.

Regional Market Reach Toronto is a strategic hub for reaching Canada's 40 million residents and provides a crucial gateway to major U.S. markets. Its location enables single-digit millisecond latency to economic centers like Chicago and New York.

Tax Advantage For Data Centers While there are no specific tax incentives aimed solely at data center construction or operation, businesses can benefit from broader federal and provincial programs. Canada's corporate tax rates are competitive among G7 nations, and programs like the Scientific Research and Experimental Development (SR&ED) tax credit can reduce costs for innovative technology companies.

Natural Disaster Risk

Toronto has a low overall natural disaster risk profile, with a composite INFORM Risk score of 2.7 out of 10, as of September 2025. This stability is a significant advantage for organizations prioritizing business continuity and infrastructure resilience.

The primary natural hazards for the region are rated on a 10-point scale:

• River Flood: 7.1
• Earthquake: 4.8
• Tropical Cyclone: 2.3
• Drought: 2.2

The risk from other major natural events like tsunamis or coastal floods is negligible due to the city's inland location on Lake Ontario.