Federal Government Plans $1.85 Billion Data Centre Near Ottawa
The Canadian federal government is set to embark on a significant project to build a new data centre near Ottawa, with costs projected to reach as high as $1.85 billion. This facility will serve the Communications Security Establishment (CSE), Canada's cyber intelligence agency, which plays a crucial role in safeguarding government computer systems and collecting foreign intelligence.
On October 7, Defence Construction Canada issued an advance procurement notice for the proposed 60-megawatt data centre, indicating that the estimated construction costs will range between $1.5 billion and $1.85 billion. The CSE has confirmed that this new facility will enhance its secure computing capacity, which is essential for its ongoing and future operations.
This investment aligns with the federal government's broader defense spending strategy, which aims to upgrade technology in response to increasing security threats. The planned data centre will feature specialized electrical and cooling systems designed to accommodate advanced computing equipment, as well as office spaces and areas designated for receiving and shipping hardware.
Canada has witnessed a surge in major data centre projects this year. Notably, Bell is constructing a $1.7 billion AI data centre in Saskatchewan, while Telus is collaborating with the federal government on AI data centres in British Columbia. Although these projects are separate from the CSE's proposed facility, they highlight the substantial financial commitments being made towards enhancing Canadian computing infrastructure. The government has also pledged billions to expand the country's domestic AI computing capabilities.
Concerns Over Energy Consumption and Demand
However, the operation of a data centre of this magnitude raises concerns about electricity consumption, especially as Ottawa is already experiencing increased demand. Hydro Ottawa has reported receiving 34 requests from large electricity consumers over the past two years, which collectively represent a potential demand of 1,075 megawatts. Data centres alone accounted for 653 megawatts of this demand.
Intelligence Reviewed
The Ottawa city council has tasked staff with examining how new data centres might impact the city's electricity supply and the environment. Similar concerns have arisen in other regions of Canada. In Vancouver, protests have erupted over Telus's planned AI data centres due to worries about electricity and water usage, while Saskatchewan has faced scrutiny regarding the energy requirements of Bell's expanding data centre operations.
As for the federal project near Ottawa, no approvals have been granted yet. The government anticipates beginning to accept construction bids in winter 2027, although a specific start date for the construction remains unconfirmed. Companies interested in bidding will be required to obtain security clearances, given the sensitive nature of the facility's purpose. The exact location of the data centre has not been disclosed, and the CSE is withholding further technical details for security reasons.
