Canadian Data Centres: A Growing Player Amidst Tech Giants
As global demand for digital storage and computing capability skyrockets, data centres have become a vital component of the tech landscape. While tech titans like Microsoft, Google, and Amazon dominate this sector, Canada is quietly nurturing a budding industry of domestic companies striving to carve their niche in the market. This exploration into Canada’s data centre ecosystem reveals a landscape rich with opportunity, innovation, and a pressing need for investment and energy efficiency.
The Current Landscape
At present, Canada’s data storage is heavily reliant on foreign-owned servers. A striking reality, it raises questions about data sovereignty and privacy—areas of growing concern for both consumers and businesses alike. One prominent Canadian player, ThinkOn, based in Toronto, stands out for its ability to meet federal security requirements. ThinkOn is the only Canadian company authorized to house federal servers, making it a cornerstone for government data handling.
CEO Craig McLellan highlights the urgency of fostering domestic competition: "We need to foster more domestic competitors as opposed to just having a bunch of American companies come to Canada." This sentiment underscores the necessity for Canada to cultivate its technological capabilities rather than merely serve as a customer in the burgeoning digital economy.
Company Insights: ThinkOn
ThinkOn boasts an impressive portfolio, employing 185 individuals and generating approximately $70 million in annual revenue. With 11 data centres worldwide, including several across Canada, the company is strategically positioned to serve both private and public sectors. During a recent tour of ThinkOn’s Ottawa data centre, it became clear just how significant their infrastructure is, housing around 1,500 servers essential for various operations.
Phil Harris, CEO of AI infrastructure company Cerio, points out the broader picture: approximately 300 data centres exist across Canada, with nearly half classified as ‘hyperscalers’—large cloud service providers operated by foreign firms.
Investment: A Critical Component
The urgency to increase investment in domestic data infrastructure is not lost on industry leaders. Harris and McLellan have both engaged with Minister of Artificial Intelligence Evan Solomon, emphasizing the need for rapid action. The CLOUD Act in the United States, which allows federal authorities to demand data from American companies worldwide, serves as a stark reminder of the potential consequences of reliance on foreign servers.
In response to the growing demands of data sovereignty and technological independence, the Canadian federal government has allocated $2 billion over five years for the development of AI computing. This funding aims to position Canada as a builder in the digital economy rather than a mere consumer.
Energy Efficiency and Sustainability Challenges
As data centres continue to multiply, the quest for sustainable energy solutions has emerged as a crucial issue. A mid-sized data centre like ThinkOn’s in Ottawa utilizes electricity comparable to that of 10,000 residential homes—much of it dedicated to cooling operations. With environmental concerns on the rise, the industry’s reliance on traditional energy models is being scrutinized.
ThinkOn’s approach to sustainability includes transitioning away from Ontario’s power grid to natural gas through cogeneration, which combines heat and power production for greater efficiency. However, Harris argues that mere upgrades aren’t enough.
"We’re building data centres for the 21st century on a 20th-century model,” he asserts. This outdated methodology places Canada at a disadvantage in a rapidly evolving sector.
The Path Forward: Innovation and Collaboration
For Canada to establish itself as a viable competitor in the data centre landscape, innovation must go hand-in-hand with collaboration. Harris emphasizes the need for both private and public sector partnerships to navigate the rapidly changing technological terrain. “We’re playing catch up and when you’re playing catch up, you need to move fast,” he warns.
The future of Canada’s data centres may not only hinge upon its capacity for internal innovation but also its ability to harness resources efficiently and sustainably. The country’s abundant clean energy and strong privacy frameworks provide a solid foundation for this transition.
Conclusion
The Canadian data centre industry is at a pivotal moment. While facing stiff competition from major international players, domestic companies like ThinkOn and Cerio are laying the groundwork for a sustainable and independent data storage future. With strategic investments, heightened awareness of energy efficiency, and a push towards innovation, Canada has the potential not just to participate in the global digital economy, but to become a leader. Collectively, these industry players must rally to turn challenges into opportunities, cementing Canada’s position in the data-driven landscape of tomorrow.
