With more Canadian businesses embracing digital transformation, the need for advanced data center capabilities has skyrocketed. Toronto data centers are rising to the challenge with world-class facilities that meet the diverse needs of modern enterprises. In this blog, we'll break down the top reasons why Toronto is the ideal location for your colocation services.

1. Strategic Business Hub

Toronto isn’t just a city; it's Canada’s business and financial capital.¹ As a major business hub, Toronto provides unparalleled access to other enterprises, financial institutions, and service providers. 

The city is home to one of the world's largest stock exchanges, the Toronto Stock Exchange, and headquarters for Canada's top banks and financial institutions. This concentration of financial powerhouses gives businesses ample opportunities for investment.  

Choosing a Toronto data center for your colocation needs positions your business at the heart of Canada's economic engine. The advantages of being close to major financial institutions, diverse industries, and potential partners can translate into accelerated growth and innovation for your company.

2. Superior Connectivity

Reliable connectivity is critical for modern business success, and Toronto data centers offer cutting-edge solutions to meet these needs. The city's network infrastructure includes:

Extensive Fiber Optics

Toronto’s fiber optic networks provide businesses with access to the high-speed connectivity needed to maintain efficient operations and deliver superior customer service. The sprawling fiber optic infrastructure ensures Toronto data centers can manage large amounts of data quickly and securely, supporting everything from cloud computing to real-time analytics.

Multiple Internet Exchange Points (IXPs)

IXPs provide direct interconnection between different network providers, increasing the speed and reliability of internet services. Direct peering reduces network hops, lowers latency, and improves overall network performance. For businesses, the availability of multiple IXPs in Toronto means faster and more reliable connections to your customers, partners, and cloud services.

Low Latency Connections

Low latency connections ensure data is transmitted quickly and efficiently, reducing delays and improving the overall performance of business applications. This is especially important for industries that rely on real-time data processing and communications, such as finance, healthcare, and e-commerce. By leveraging low latency data centers in Toronto, Canadian businesses gain a competitive edge with near-instantaneous data transmission and processing.

3. Economic Benefits

Toronto offers several economic advantages that make it an attractive location for data centers – which can translate into reduced costs for your business. Incentives like tax credits, grants, and subsidies are available to businesses in various sectors, including technology, finance, and manufacturing. These help offset the costs of setting up and operating a data center in Toronto, making it a more cost-effective option.

Ontario, with Toronto as its capital, has also seen remarkable growth in venture capital investment. About $2.86 billion in venture capital flowed into the province in 2022, representing a 206% increase over the previous year.² This surge in investment demonstrates the increasing confidence in Toronto's tech and AI ecosystem.

The combination of government support and increasing venture capital investment makes Toronto a great option for data center providers. By choosing colocation services in Toronto, your business can leverage these economic benefits to optimize your own networking costs.

4. Advanced Infrastructure

A robust infrastructure is crucial for the smooth operation of data centers. The data center infrastructure in Toronto delivers:

• High-Density Power: Toronto data centers are equipped with high-density power solutions that provide the necessary electrical capacity to support power-hungry applications and equipment. These solutions ensure that businesses can run intensive workloads without compromising on efficiency or reliability.
• Cooling Solutions: Advanced cooling systems help maintain optimal operating temperatures and prevent overheating. These solutions enable AI and big data workloads to run at peak performance without excessive energy consumption.
• Security Measures: Toronto data centers employ multi-layered security protocols, including 24/7 on-site security personnel, advanced biometric access controls, video surveillance systems, and regular security audits and penetration testing.

The infrastructure offered by Toronto data centers provides a solid foundation for businesses to leverage cutting-edge technologies, ensure operational resilience, and maintain the highest standards of data security.

5. Thriving Tech Ecosystem

Toronto's rapid rise as a technology hub has been remarkable. CBRE ranked Toronto fifth globally in its 2023 Tech Talent Scorecard, following only the Bay Area, Seattle, New York Metro, and Washington, D.C.³ This establishment as a thriving tech ecosystem means businesses that use Toronto colocation services benefit from:

Major Tech Companies and Startups

Major technology providers, including Google, Microsoft, and IBM, have a major presence in Toronto. Additionally, the city has become a hotbed of startup activity, especially in the AI field. This concentration of tech giants alongside innovative startups creates a dynamic environment that fosters innovation.

Skilled Workforce and Top Educational Institutions

The Toronto tech ecosystem is supported by a skilled workforce and top-tier educational institutions. Toronto added 63,800 jobs in its technology sector between 2017 and 2022, making it the second fastest-growing space for North American tech talent.⁴ 

The University of Toronto plays a major role in supplying the city with outstanding talent. The university has been a driving force in AI development, with graduates founding successful startups like Waabi and Cohere, both of which placed on the 2023 Forbes 50 AI list.⁵ Ryerson University and York University also offer specialized programs in computer science, engineering, and business, providing data centers with access to a pool of talented professionals.

Innovation Hubs and Accelerators

Toronto is home to several innovation hubs and accelerators that support the growth of tech companies, including:

• Vector Institute: An independent non-profit organization dedicated to AI research, founded by U of T Professor Brendan Frey in 2017
• MaRS Discovery District: One of the world's largest urban innovation hubs
• DMZ at Ryerson University: A leading business incubator for tech startups
• Creative Destruction Lab: A seed-stage program for scalable, science-based companies

These hubs provide resources, mentorship, and networking opportunities that can be invaluable for businesses leveraging Toronto data centers.

Partner With eStruxture for Your Toronto Colocation Needs

From superior connectivity to economic advantages and beyond, Toronto data centers offer Canadian organizations several strategic advantages in today's digital landscape. Toronto's appeal as a prime location for data centers extends beyond geography – it's about creating an optimal environment for your business operations. 

At eStruxture, we're proud to offer state-of-the-art data center facilities in the Greater Toronto Area that embody all these benefits. Our carrier-neutral Toronto data centers are strategically located to provide you with the best core and edge locations to suit your needs. And with our massive power capacity and flexible space options, your IT infrastructure can scale seamlessly as your business grows. 

Ready to explore how our Toronto data centers can benefit your business? Contact us today to learn more about our tailored colocation solutions.

Sources:

1. https://www.toronto.ca/business-economy/invest-in-toronto/strong-economy
2. https://www.bloomberg.com/news/articles/2023-08-08/how-toronto-is-competing-to-become-a-global-ai-destination
3. https://www.cbre.com/insights/books/scoring-tech-talent-2023/which-are-the-top-ranked-tech-talent-markets
4. https://thevarsity.ca/2023/10/21/toronto-emerges-as-an-ai-hub-aiming-to-compete-with-silicon-valley
5. https://entrepreneurs.utoronto.ca/forbes-ai-50-list-includes-two-u-of-t-startups