The Benefits of Choosing Local Data Centers for Improved Site Performance in Canada

Updated: April 5, 2025 by Michael Kahn. Published: April 5, 2025.

Distant data centers create high latency, pushing visitors away from sites. The best data centers combine broad connectivity fiber with low-cost power and space. What is their ideal distance from big cities?

The benefits of choosing local data centers for improved site performance in canada

Users seeking ideal connectivity are dependent on many redundant fiber connections to leading bandwidth hubs, and building multiple connections to many network providers is the only way to provide reliable and consistent bandwidth at the volumes an enterprise-grade data center requires. These providers’ facilities tend to group at central peering points. Users benefit from low latency when data centers are located near these peering points, known as Internet Exchanges.

The problems with distant data centers

Users of a data center are invariably bound by the internet’s physics and infrastructure regardless of the bandwidth volume the center is able to access. Data transfer takes time. Normally, round-trip distances are twice as long as geographic distances because the request, as well as the response, must travel the distance. Website loading time is the direct result. Statistics on web page load time and bounce rate provide crucial insight in this context. Load time of 1-3 seconds leads to a bounce rate probability of 32%. At 1-5 seconds, the likelihood of a visitor “bouncing” from the site increases by 90%.A load time of 1-6 and 1-10 seconds increases the bounce rate probability by 106% and 123%, respectively. The website’s hosting company can improve load time by increasing bandwidth and ensuring uptime. Thankfully, it’s not difficult to find reliable web hosting in Canada.

What’s more, the network state compounds the round-trip time. Data transferred between two entities almost never travels in a straight line. It runs through routers, networks, and switches, increasing the latency. The farther away a data center is from its customers, the higher the latency.

Data centers in Canada and worldwide

By the end of 2024, the number of public data centers globally is expected to reach 5,709. This number includes 523 hyperscale sites and 5,186 colocation sites. The majority of centers are in the Asia-Pacific region, followed by Europe and North America. By 2030, ABI Research predicts there will be 8,378 data centers worldwide.Equinix, IBM Cloud, Zenlayer, Digital Realty, and 365 Data Centers are among the biggest colocation providers in Canada.

Features of the best colocation providers

The best data center providers combine broad and rich connectivity fiber with lower-cost power and space availability. They should be far enough from metro areas to avoid costly city center premiums and enable disaster recovery but close enough for businesses to access. The facility’s geographic proximity to users significantly impacts network latency, user experience, and data transfer speeds. What is the best latency? The connection type and physical distance generally determine this. Ideally, there should be 1 ms of latency per 60 miles between the user and the endpoint. The type of connection adds a base latency: 100-220 ms for dial-up, 10-70 ms for DSL, 5-40 ms for cable internet, and 0-10 ms for T1.

Finally, the distance between the data center and the respective IT team should be considered. One must consider how long it will take the team to arrive onsite if there is a disruption or for regular maintenance.

The benefits of choosing local data centers for improved site performance in canada

FAQ

What are the benefits of data centers for the local economy?

Apart from the above benefits of local centers, there are tangible ones for the economy, such as job creation. Building a data center comes with substantial capital investment and creates jobs for trades and general construction workers.

How many data centers are there in Canada?

Two hundred thirty-nine data centers from 28 Canadian markets are currently listed.

How big is the Canadian data center market?

The Canadian data center market was valued at $0.92 billion in 2024 and is projected to reach $1.54 billion in the next five years, up 10.93% annually during the forecast period.

What is the biggest problem data centers face?

  • Power demand
  • Data management issues
  • Data center cooling
  • Cybersecurity
  • Space and scalability

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