Canadian government eyes up to US$ 1.3 billion for 60 MW data center

Vibrant evening at Toronto City Hall | Image Courtesy: Pexels
October 16, 2026 at 8:44 PM GMT+8

Defence Construction Canada, a Canadian Crown corporation that provides infrastructure, environmental, and contracting services, has issued an advance procurement notice for a data center facility in Ottawa, Ontario at an estimated cost of between CA$ 1.5 billion and CA$ 1.85 billion (US$ 1.06 billion and US$ 1.31 billion).

As outlined in the notice, Defence Construction Canada is targeting a capacity of 60 MW for the facility. The corporation anticipates that procurement will begin in winter 2027, conditional on approval to proceed being granted by the Government of Canada.

“To increase its capacity in supporting the mid to long-term objectives related to operations, security, and technology modernization, the Government of Canada is planning to design and construction (sic) a data center facility within the National Capital Region,” the notice reads.

“This Data center of 60 MW will enable the onboarding of next-generation capabilities with tailored mechanical and electrical configurations to meet distinct technology requirements throughout the facility. The proposed data centre facility will also include a small office space and a shipping and receiving area,” it continues.

The Communications Security Establishment (CSE) told CTV News Ottawa that the proposed data center would provide much-needed secure computing capacity necessary to support its current and future operational requirements.

“It is part of the Government of Canada’s broader defence investments, including investments through CSE to modernize the secure infrastructure and capabilities needed to respond to evolving threats and support Canada’s national security and defence priorities,” CSE said in a statement to CTV News Ottawa.

The project could fall apart at any time and Defence Construction Canada says that this notice is to allow interest parties to obtain the security clearances required to participate in the process.

Ontario has the largest provincial data center footprint due to its ample connectivity, renewable energy and Canada’s financial hub, Toronto, in the province, according to Mordor Intelligence. Canada’s data center market is set to grow from US$ 11.46 billion in 2025 to US$ 25.09 billion by 2031.