Record Data Center Expansion in Canada
Looking to quickly expand, Equinix Inc. found itself running out of space in its existing multi-tenant Telecom Hotel, which was 100% leased. Equinix required a new Tier III 200,000-plus square foot data center close to its existing financial core location. With a vacancy rate of only 4%, the market had run out of existing suitable space and escalated condo development was out-bidding all other uses for land sites.
Cushman & Wakefield's Global Data Center Advisory group mounted an intensive search for suitable land sites not yet on the market. The team located a former rental car site with car wash attached, owned by a family trust. The site had also once housed Upper Canada's First Parliament Buildings built in 1778 and burned down during the War of 1812. A sudden bid to preserve the site by The City of Toronto and federal government required us to negotiate a land swap for a parcel of land across the street.
Our team succesfully negotiated a 15-year lease for a 220,000-square-foot design-build Tier III data center with up to 20 megawatts of power. Expected to open in the Spring of 2016, this ranks as the largest third-party data center transaction to be completed in Canada, with the rent and Phase 1 construction valued at approximately $220 millon. The project team helped to further Equinix's ongoing focus on providing colocation data center space in leading financial markets. Toronto is home to the Toronto Stock Exchange, the largest financial exchange in Canada.