Why Putting Your Data Center in Canada Makes Sense
With its cool climate, low risk rating and skilled labor force, Canada seems like a great spot to build a new data center. If that's where your customers are, experts say, there's no reason not to expand north of the border. Otherwise, think twice.
Mon, October 08, 2012
CIO — There are a lot of myths about Canada—most related to the country's climate—but these misconceptions actually leave some wondering if Canada might be a good location for a data center.
Why Canada Is on the Data Center Radar
Michel Cartier, Kelvin Emtech CEO and president of the Data Center Innovation Expo, was joined by other experts from Quebec and beyond at last month's DCIE in Montreal to discuss recent data center innovations.
According to Cartier, there are numerous reasons that Canada is an appealing data center location.
- Canada in general—and the province of Quebec in particular—has low energy costs and water rates.
- Highly trained people, skilled labor and private network providers are all easy to find.
- Canada is generally regarded as a low risk for both natural and man-made disasters.
In addition, the Canada Privacy Act appeals to European and international companies looking to locate data centers, Cartier says. Canadian law, which doesn't allow a government institution to collect personal information unless it relates directly to an operating program or activity of that institution, tends to be better aligned with European regulations than the USA Patriot Act, which makes data accessible to any parties of government.
"Most companies coming into Canada aren't a Yahoo or Google type of company," Cartier says. "We're seeing large, global co-locators with customers based in Europe and Asia who want to bring operations to North America but need regulations that protect the customer's privacy."
Canada's Climate a Natural Fit for Free Cooling
The recently released Data Centre Risk Index ranks Canada second out of 20 countries, with the United States No. 1. The report, produced by Cushman & Wakefield LLP and Hurleypalmerflatt, considered factors that are likely to affect successful data center operations. Canada got high scores for its low energy costs, political stability, bandwidth and ease of doing business. Factors such as cost of labor and inflation risks, while still favorable, scored lower.
Other data center trends—namely, energy efficiency and environmental impact—also suggest Canada might be a good location for a facility. Eddie Schutter, a member of the nonprofit industry consortium The Green Grid, points specifically to a favorable environmental climate that offers low taxes, low utility rates and economic incentives for green initiatives.
Green energy and free cooling, which is the process of using low air temperatures to chill water for cooling systems, are key factors in lowering data center operational costs. The most efficient and least expensive techniques use natural resources such as cool air and water, according to DCIE. This makes northern countries a natural choice for companies looking to set up new data centers.
Since Quebec is much cooler than the rest of North America, it's an attractive place for data center development that could substantially lower operating costs while increasing energy efficiency.
"What we like to say in the province of Quebec is that electricity is cheap and green, and power distribution is good, in terms of the impact on the data center," says Patrick David, president of Groupe Datareal, a real estate company specializing in complete data centers. "Basically, you don't have downtime due to lack of quality in the distribution network."