Canada Data Center Storage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Canada Data Center Storage Market size is estimated at USD 0.92 billion in 2024, and is expected to reach USD 1.54 billion by 2029, growing at a CAGR of 10.93% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data center storage in the country.

Key Highlights

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Canadian data center rack market is expected to reach 1,150 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.1 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 289,000 units by 2029. Quebec is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 16 submarine cable systems connecting Canada, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Sednalink Fibre, which stretches over 2,104 km with landing points from Goose Bay, NL, Canada, and Iqaluit, NU, Canada.
• An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Several factors contribute to the demand for data centers and their growth within Canada, which is reflected by the country's evolving IT landscape, business activities, and technological initiatives. Key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce and digital services, renewable energy and sustainability, and smart cities and IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.

Canada Data Center Storage Market Trends

IT and Telecommunication Segment Holds the Major Share

• The COVID-19 pandemic has seen the economic impact of companies that entered the digital transformation early, either by offering digital products and services or by leveraging digital processes, more economically than their peers that gradually embraced digital transformation.
• In the early days of the pandemic, after years of increasing adoption, public cloud adoption became mainstream. The Canadian public cloud market revenues were expected to continue to total USD 5.21 billion, projected to increase by 46.42% from 2023 to 2027. Revenue is expected to grow to USD 16.4 billion by 2027 for the fourth year in a row. It is worth noting that the public cloud market revenue has increased steadily in recent years.
• Cloud storage in Canada is growing due to the increasing demand for cost-effective data backup, storage, and protection across all businesses and the need to manage data generated by the increasing use of mobiles.
• Cloud infrastructure offers capabilities such as increased scalability and flexibility to better serve your customers with minimal downtime. Enterprises are migrating from traditional complex infrastructures to cloud infrastructures, and data center usage is expected to increase during the forecast period.
• Further, telecommunications has evolved and started using a hybrid cloud structure, which combines public and private cloud structures. The usage of this hybrid cloud structure helps telecommunication companies manage the sudden surge in traffic. The implementation of hybrid cloud services helps the telecom industry deploy its cloud services instantly, leading to lower downtime. The increased bandwidth speeds increased data consumption on mobiles from 1.5 GB in 2016 to 4.8 GB in 2022, and it is expected to reach around 8.6 GB by 2029. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center storage solutions in the coming years.

Hybrid Storage is Expected to Hold a Significant Market Share

• The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
• Canadian regulations on data protection and hybrid storage make it easier for organizations to retain control of sensitive data by keeping them in a private location while still leveraging the cloud over certain workloads. The issues relating to data sovereignty and observance of privacy legislation are addressed in this directive.
• Canada has a strong focus on innovation and adopting new technologies. Hybrid storage allows advanced technologies such as artificial intelligence (AI) and analytics to be adopted more easily. This makes integrating on-premises infrastructure with cloud services easy, supporting diverse data processing needs.
• According to the government of Canada's Smart Cities Challenge, which was launched in 2017, more than 225 municipalities expressed an inclination to explore the plan's advantages by filing their applications, demonstrating interest in developing more smart regions in the future. The emergence of 5G services in smartphones and other faster network technologies is giving rise to the wider deployment of smart devices that are controlled by apps in smartphones. The number of 5G users is expected to increase from 7% in 2021 to about 62% by 2025, further contributing to data consumption and network evolution over the forecast period. Such improvements in the market propel the growth of data centers and, consequently, the demand for DC storage in the country.
• The key players in the market focus on improving the data center storage solutions to meet the market demand. In May 2023, Infinidat, a prominent provider of enterprise storage solutions, announced the launch of two prominent new solutions. The solutions include the launch of InfuzeOS Cloud Edition, which expands Infinidat’s support of hybrid cloud storage deployments and new InfiniSafe Cyber Detection for enterprise primary storage to better resist cyberattacks.

Canada Data Center Storage Industry Overview

The upcoming DC construction projects in the country are expected to increase the demand in the Canadian data center storage market in the coming years. The Canadian data center storage market is moderately consolidated with some players in the market, including Dell Inc., Hewlett Packard Enterprise, Hitachi Vantara LLC, Kingston Technology Company Inc., and Infinidat Ltd. These major players, with a prominent market share, focus on expanding their regional customer base.

• September 2023: Infinidat, a prominent provider of enterprise storage solutions, announced the release of two new significant enhancements that enrich and expand its all-flash capabilities and capacity for enterprise storage. Infinidat is launching SSA Express Software for the InfiniBox platform, providing a fast, all-flash engine integrated into the hybrid array. It assists smaller applications and workloads that require higher performance at low speed, and SSA Express Software eliminates the need for businesses to buy separate siloed flash arrays.
• July 2023: Hitachi Vantara, a prominent infrastructure, data management, and digital solutions subsidiary of Hitachi Ltd, announced its collaboration with Microsoft to launch the Hitachi Unified Compute Platform (UCP) for Azure Stack HCI. The powerful and streamlined hybrid cloud solution increases business flexibility and delivers enhanced cloud management across various environments, including data centers, branch offices, and edge computing, to give businesses greater visibility and control over how their data is stored, managed, and used.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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