Backblaze expands cloud services in Canada for data compliance

Published 11/03/2025, 15:14
Backblaze expands cloud services in Canada for data compliance

TORONTO - Backblaze Inc. (NASDAQ: BLZE), a global cloud storage provider with a market capitalization of $266 million, has established a new deployment at Cologix’s TOR3 data center in Toronto, enhancing its ability to offer cloud services that comply with Canadian data sovereignty laws. According to InvestingPro data, the company has demonstrated strong growth with revenue increasing 25.1% in the last twelve months, despite its stock trading near 52-week lows. This strategic move, announced today, aims to provide businesses with cloud storage solutions that adhere to the strict regulations governing the storage and processing of data within Canada’s borders.

The deployment at TOR3 features a high-capacity setup with dedicated power and a direct fiber connection to Cologix’s TOR1 facility, which is Canada’s largest carrier hotel. This setup ensures rapid access to a multitude of network providers and the Toronto Internet Exchange (TorIX), facilitating swift and secure data transfers. The expansion comes as Backblaze maintains a healthy gross profit margin of 54.7%, indicating strong operational efficiency in its existing infrastructure.

Chris Opat, Sr. VP of Cloud Operations at Backblaze, emphasized the importance of this expansion, stating that the collaboration with Cologix directly addresses the increasing demand for in-country data storage solutions in Canada. According to Opat, this partnership enables international businesses to maintain data sovereignty without compromising on performance or cost-effectiveness.

The Canadian cloud services market is experiencing growth, driven by sectors such as healthcare, finance, and government that require data to remain within national borders. Backblaze’s presence at the TOR3 data center reflects the company’s commitment to supporting these industries through their digital transformation while ensuring compliance with data sovereignty requirements. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets significantly above current levels. For deeper insights into Backblaze’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Sean Maskell, President and General Manager of Cologix Canada, highlighted the significance of adding Backblaze to the TOR3 facility, which he believes reinforces Cologix’s role as a facilitator of digital transformation in Canada. The collaboration is presented as a testament to Cologix’s dedication to providing advanced digital infrastructure capable of meeting the surging demand for high-performance cloud storage and addressing critical data sovereignty concerns.

The TOR3 data center is a Tier III facility with two megawatts of power and 20,000 square feet of space. It boasts industry-leading cooling systems, stringent security measures, and compliance with multiple standards and certifications. Cologix currently operates 22 data centers across Canada, featuring a robust interconnection ecosystem that includes 350 networks and more than 200 cloud providers.

This information is based on a press release statement.

In other recent news, Backblaze Inc. reported its fourth-quarter 2024 earnings, surpassing analyst expectations. The company announced an earnings per share (EPS) of -0.06, beating the forecast of -0.09, and achieved a revenue of $33.8 million, slightly above the anticipated $33.64 million. This performance marks an 18% year-over-year revenue growth, driven largely by a 22% increase in the B2 Cloud Storage segment. Backblaze’s adjusted EBITDA more than doubled from the previous year, reflecting enhanced operational efficiency. The company projects its 2025 full-year revenue to range between $144 million and $146 million, with expectations for B2 growth to exceed 30% by the fourth quarter of 2025. Additionally, Backblaze aims to achieve an adjusted EBITDA margin above 20% by the end of 2025. Analyst discussions during the earnings call highlighted the company’s strategic focus on AI and cloud storage markets as key growth drivers.

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