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Data Centers in Montreal

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Montreal – Premier Hub for Low-Latency Connectivity

Montreal is a top-tier market for businesses requiring cost-effective, highly connected, and scalable data center solutions. Its combination of low-cost, renewable energy and dense network infrastructure provides a stable platform for reaching markets across Eastern Canada and the Northeastern United States, ensuring high-performance delivery of applications and services.

Montreal: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent fiber density and a high number of network and cloud providers.
Direct Cloud On-RampsOver 11 – as of September 2025Includes AWS, Azure, Google Cloud (GCP), and Oracle Cloud for private connections.
Power CostCAD $0.05 – $0.08/kWhBased on Quebec's abundant and low-cost hydropower resources.
Disaster RiskLow (2.7/10) – as of September 2025Low overall exposure to significant natural disasters.
Tax IncentivesNoNo specific data center tax incentives are currently in place.
Sales TaxGST + provincial 5–15% (federal GST 5%)As of September 2025.

Network & Connectivity Ecosystem

Montreal has one of the most developed digital infrastructures in Canada, offering exceptional connectivity and choice.

  • Carrier Density & Carrier Neutrality: The market features a healthy ecosystem of over 30 unique network carriers, as of September 2025. Most colocation facilities operate on a carrier-neutral basis, giving customers the freedom to choose providers.

  • Direct Cloud On-Ramps: With over 11 dedicated cloud on-ramps, businesses can establish direct, private connections to 13 different cloud regions. Major public clouds with a dedicated presence include AWS, Google Cloud (GCP), Microsoft Azure, and Oracle Cloud.

  • Internet Exchange Points (IXPs): The primary exchange is the Montreal Internet Exchange (QIX), which facilitates efficient, low-latency traffic exchange between networks within the region. This improves performance and reduces costs for local data transit.

  • Bare Metal: Bare metal servers are readily available from multiple providers in the Montreal market. Options include services from providers like OVHcloud and Hivelocity, offering dedicated compute for performance-intensive workloads.

Power Analysis

  • Average Cost Of Power: Montreal offers some of the lowest power costs in North America, with industrial rates typically between CAD $0.05 and $0.08 per kWh, as of September 2025. This significant cost advantage is driven by Quebec's vast hydropower resources, reducing operational expenditures for high-density deployments.

  • Power Grid Reliability: The power grid, managed by Hydro-Québec, is exceptionally reliable and primarily supplied by renewable hydroelectric sources. Data center corridors are supported by well-engineered, redundant infrastructure, ensuring high levels of uptime.

Market Access, Business & Tax Climate

  • Proximity To Key Business Districts: Data centers in Montreal are strategically located to serve the city's thriving technology sectors, including artificial intelligence research, visual effects, gaming, and life sciences. This proximity provides the low-latency connections these industries demand.

  • Regional Market Reach: Montreal is a strategic gateway to serve approximately 100 million people across Eastern Canada and the Northeastern United States. It offers an effective hub for reaching major markets like Toronto, Boston, and New York with minimal delay.

  • Tax Advantage For Data Centers: While specific tax abatement programs for data centers are not offered, Canada's favorable corporate tax rates and R&D tax credits can create a financially advantageous environment. These federal and provincial programs support technology investment and can reduce the overall tax burden for eligible companies.

Natural Disaster Risk

Montreal has a low overall risk profile for natural disasters, with an INFORM Risk score of 2.7 out of 10, as of September 2025. This stability is a key advantage for critical infrastructure planning and business continuity.

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

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

While the risk from river flooding is the most significant, modern data centers are built outside of known flood plains with appropriate mitigation measures in place. Seismic risk is considered low to moderate and is accounted for in building codes.

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