Electronic Products & Technology

Wholesale Data Centers migrate naturally to Canada

Stephen Law   

Electronics Engineering Supply Chain data centres

A potential US$14.0 billion industry with stable recurring cash flows and solid growth rates is expanding North

Montreal-based Northern Investment Partners Inc. has set-up and partnered with M Capital Group – MCG, a Merchant Banking Group with offices in New York, London and Dubai, to invest up to CA$160 million in equity to pursue a build, operate and acquisition strategy to take advantage of one of the world’s fastest growing real estate and technology opportunities, namely wholesale data centers.

The objective is to provide facilities for AA and AAA tenants to house their IT infrastructure, with a beachhead platform in one of the most naturally promising markets in the world, Canada.

Global data center industry is worth over US$14-billion

“Today, the global data center industry is worth over US$14-billion, with Canada poised to capture an increasing share as it becomes more and more attractive to foreign and domestic customers taking advantage of the ideal market conditions the country has to offer,” says Roger Karam, chairman of Northern.


“The North American market accounts for almost half of the global market, which is expected to rise at a CAGR of 12.1 percent between 2015 and 2018. With increased requirements for the cloud industry, it is expected to double in size within the next 5 years. Canada is considered to be one of the most competitive markets to host wholesale data centres because of its cold climates, low cost of energy, stable and protective data protection and privacy laws and stable socio-political environment. Canada has the additional advantage of a privileged relationship with the world’s greatest consumer of data center services, the United States. It’s cultural proximity and trading partnership makes it an ideal destination for US corporations. More specifically, provinces such as Quebec, have among the lowest cost of electricity in the world, along with cheap real estate and affordable construction costs, thus checking all the boxes to make it the best opportunity to build data centres.”




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