Canada Cloud Storage Service Market Analysis, Size, and Forecast by Type, Deployment Model, Organization Size, Subscription Model, and Industry: 2019-2033

Canada Cloud Storage Service Market Outlook

The Canada cloud storage service market is undergoing a transformative evolution, projected to surpass US$ 6.0 billion in value by 2033, growing at a CAGR of approximately 11.8% during the forecast period. This momentum is powered by a convergence of enterprise digitization, federal investments in sovereign cloud infrastructure, carbon-conscious innovation, and an accelerated demand for secure, compliant storage solutions among Canadian SMEs and public-sector organizations.

As per David Gomes, Manager – IT, the market is witnessing a dynamic shift in value creation from basic storage capacity to strategic cloud services offering multi-zone resilience, encryption-at-rest, and localized control to meet Canada’s data residency laws and privacy expectations under PIPEDA and the Digital Charter Implementation Act.

A defining trend in the market is the increasing demand for sovereign cloud infrastructure. Cloudian’s recent partnership with a Canadian cloud services provider to launch an object storage-based sovereign cloud model underscores this priority. This development not only ensures compliance with data localization regulations but also enhances operational control, particularly for government agencies, educational institutions, and healthcare organizations seeking independence from foreign-hosted clouds.

Simultaneously, large-scale infrastructure providers are scaling their physical presence across major data corridors. Backblaze’s expansion into Canada through Cologix’s data centers is a compelling example, demonstrating how edge cloud storage and proximity networking are becoming vital to latency-sensitive sectors such as digital media, financial services, and e-commerce. This marks a strategic push toward hybrid and multi-cloud interoperability, now viewed as essential by enterprise IT leaders seeking vendor-neutral environments with scalable throughput and redundancy.

Environmental sustainability is also emerging as a core pillar of market growth. With Canada investing significantly in carbon capture and storage (CCS) technologies, such as the February 2025 announcement by Natural Resources Canada allocating funds to clean energy innovation, cloud providers are integrating green energy use and sustainability frameworks into their storage architecture. This development aligns with national net-zero goals and positions data centre providers with lower carbon footprints as competitive differentiators in the enterprise RFP process. [Suggested link: Natural Resources Canada – Clean Energy Innovation – supporting data].

Industry players are also increasingly targeting Canadian SMBs with simplified, localized offerings. For instance, Financial Cents introduced a Canada-specific file storage solution tailored for CPA firms and compliance-heavy industries. This product reflects a broader market segmentation strategy, where storage solutions are customized for vertical-specific workflows and regulatory demands. These offerings are gaining traction due to their ease of deployment, native encryption, and seamless integrations with widely used practice management and ERP platforms.

The object storage segment is gaining particular attention, fuelled by the rise of unstructured data from video surveillance, IoT applications, and enterprise content management. Leaseweb’s rollout of object storage in Canada directly caters to this demand, enabling businesses to scale their data archives while maintaining cost efficiency and S3 compatibility. According to David Gomes, the rapid shift from legacy file systems to object-based repositories marks a strategic modernization move across media, biotech, and public research institutions in Canada.

Expert consensus indicates that enterprise buyers are prioritizing three key capabilities when evaluating cloud storage vendors: data sovereignty, SLA-backed uptime guarantees, and zero egress fee models. These criteria are being reinforced by emerging procurement standards across Canadian provinces, particularly in public sector tenders. Forward-thinking providers offering high-availability clusters across Montreal, Toronto, and Vancouver are better positioned to win enterprise contracts, especially in the healthcare and legal tech sectors.

In terms of future outlook, the convergence of AI/ML workloads, remote work infrastructure, and government-sponsored digital transformation grants will further solidify the cloud storage market’s trajectory. As edge computing deployments rise, demand will increasingly concentrate around regionalized storage zones and latency-optimized infrastructure. Moreover, federal and provincial support for data sovereignty and green infrastructure initiatives will continue to de-risk investments in Canadian cloud operations, enhancing long-term market viability.

Authors: David Gomes (Manager - IT)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

Canada Cloud Storage Service Market Scope