Secondary Market: Montreal

Colocation Insights

• Colocation providers are adding higher power densities for certain tenants.
• Due to M&A activity, some colocation facilities are not renewing smaller tenants as their new minimum thresholds increase.
• AI, ML and other high performance compute workloads are an increasing demand profile.
• Green power is increasingly influential in multimarket RFPs, particularly when total cost of occupy is similar.

Market Trends

• Hydro-Quebec is tightening its power procurement criteria, particularly on the Island of Montreal.
• Securing large power capacities takes longer outside pre-qualified locations.
• Industrial land availability is increasingly scarce.

Notable Activity

• Vantage Data Centers plans to invest $713 million to expand operations in Montreal and Quebec City, Canada. Vantage plans to develop a third data center campus in Montreal and expand two of its existing campuses.

Figure 1: Market Development Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 2: Market Inventory and Vacancy

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 3: Market Fuel Mix

Source: Hydro Quebec.

Figure 4: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.