ARTICLE
12 February 2016

Why Quebec Is A Natural Fit For Data Centres

MT
McCarthy Tétrault LLP

Contributor

McCarthy Tétrault LLP provides a broad range of legal services, advising on large and complex assignments for Canadian and international interests. The firm has substantial presence in Canada’s major commercial centres and in New York City, US and London, UK.
The recent announcement of Amazon's decision to build a data centre in Montreal confirms an upswing in data centre projects in Quebec.
Canada Energy and Natural Resources

The recent announcement of Amazon's decision to build a data centre in Montreal confirms an upswing in data centre projects in Quebec.

There are many basic factors supporting the decision to build a data centre in Quebec, making us expect more similar projects to be announced in the near future.

Quebec is a cold place most of the year and should, global warming notwithstanding, remain sufficiently cold for the foreseeable future. Most of Quebec has negligible seismic activity. And Montreal is growing in stature as a tech hub.

Electricity is abundantly available at very competitive prices in Quebec. This should remain a key feature of doing business in Quebec for many years to come.

99% of electricity distributed in Quebec is generated from water, wind and biomass, which should allow sponsors setting up a data centre or any other project in Quebec to move closer to their renewable and clean energy consumption targets.

But the clincher, these days, may very well be a low Canadian dollar, promising to remain low at least during the design and building phases of any project announced soon enough, thus further encouraging multinational companies to locate data processing and storage in Québec.

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