Toronto, Canada’s largest city, is set to welcome two significant data storage projects as major American companies have recently invested over $90 million in land acquisitions around the area.
Prologis, the biggest industrial real estate investment trust globally, has just received conditional approval from the city of Mississauga to construct a data storage facility on what used to be the last operating farm in Mississauga. Prologis bought the 40-acre site known as 0 Tenth Line West for $92 million last December, according to Co Star data.
Prologis is seeking to build on this site in Mississauga, Ontario. (City of Mississauga)
The data storage sector has gained attention in Canada’s real estate market lately since the federal government announced a $2 billion package aimed at helping businesses develop and access data storage facilities. Earlier this year, Prime Minister Mark Carney appointed Evan Solomon as the new minister of artificial intelligence and digital innovation and minister responsible for the Federal Economic Development Agency for Southern Ontario.
In an interview with Globe & Mail this summer, Solomon expressed openness to foreign investment in the data sector-a segment expected to experience a compound annual growth rate of 10.26% from 2023 to 2029, reaching an estimated market value of $9.04 billion by 2029, based on a report from Encor Advisors released last October.
The land was part of a family-run farm that operated for over 170 years. Provincial authorities expropriated part of it back in 1957 for highway development, prompting the family to shift its focus mainly toward egg production.
This farm is located at the northwest corner of Mississauga and is surrounded by Highway 401 and the Highway 407 on ramp. Previously, provincial authorities showed interest in acquiring this property for another highway project.
To proceed with its data storage initiative, Prologis will need to follow regulations set by municipal authorities in Mississauga. A city official informed Co Star News via email that
“A zoning bylaw amendment application will be required to allow any new uses, including a potential data centre,”
the representative stated. “The applicant is aware of this requirement and is working with staff on a submission.”
A spokesperson from Prologis mentioned that their project in Mississauga is still in its early phases.
“It’s still very early in the process, and we are looking at a range of potential development options for the site that would benefit the Mississauga community,”
a company representative stated in an email.
Source link
Equinix Joins Toronto Land Acquisition Trend
In another recent transaction, Equinix became the second company from San Francisco Bay Area willing to invest more than $90 million for land near Toronto dedicated to data storage development. Equinix paid $94 million for a parcel comprising 21.1 acres on Orlando Avenue’s north side through a deal with Winnipeg-based Canada Life Assurance Co., according to Co Star data. This property sits close to Highway 404 and 16th Avenue in Richmond Hill, Ontario-about 30 kilometers north of downtown Toronto. Representatives from Equinix and Richmond Hill city officials did not respond immediately regarding inquiries about future plans for this site. The greater Toronto area leads Canada with a total of 86 active data storage facilities followed by Montreal with 58 and Vancouver having 30 locations as per datacentermap. com......Source link
