Bell Canada plans 1.2 GW AI data center expansion in Saskatchewan with C$52.5 billion investment, positioning telecom infrastructure into AI compute supply.

Bell Canada, one of the country’s largest telecommunications companies, is dramatically expanding its artificial intelligence data center operations in Saskatchewan. Building on an existing 300 MW plan, the company intends to secure up to 900 MW of additional capacity in phases, bringing total power capacity to 1.2 GW. Total capital investment is estimated to reach up to C$52.5 billion (approximately US$36.8 billion). The centerpiece of the expansion is the initiative branded as “Bell AI Fabric.” The already-concretized 300 MW AI data center is under construction in Sherwood, near the provincial capital of Regina. Initial site work began in April of this year, with the first data hall targeted for commissioning in the first half of 2027. For this initial phase, SaskPower, the provincial utility, will supply electricity through a dedicated industrial grid separated from the residential power network.

Prime Minister Mark Carney and Saskatchewan Premier Scott Moe jointly announced the plan on the 14th at Canada’s first Investment Summit in Toronto. Carney said the project is expected to attract more than C$50 billion in capital investment, making it the largest capital investment in Saskatchewan’s history. He described it as “the largest sovereign AI infrastructure network in Canada.” The announcement aligns with the Canadian government’s broader “sovereign AI” infrastructure strategy. Through its AI Sovereign Compute Infrastructure Program, the government plans to invest approximately C$890 million over seven years starting in fiscal 2026 to support the design, construction, and operation of computing infrastructure. Furthermore, the government said it is engaged with multiple proponents on proposals representing up to 6 GW of additional data center capacity nationwide, with potential investment exceeding C$100 billion. The Canadian government estimates that if the expansion plan is fully realized, total capital investment could reach up to C$52.5 billion, with job creation of approximately 4,500 positions. Bell, for its part, stated that total capital investment—including data center buildings, tenant computing equipment, and associated power generation facilities—could exceed C$50 billion. The Saskatchewan government, in a separate release, said the project would create 500 permanent jobs and roughly 3,000 additional positions in security, logistics, and maintenance.

For the additional 900 MW under consideration, both parties have signed a non-binding memorandum of understanding. Bell plans to proceed with phased development contingent on securing customer contracts, commercial agreements, permits, and environmental assessments. Notably, the power sourcing strategy for the additional capacity differs from the initial phase. While the first 300 MW will draw from SaskPower’s dedicated grid, the additional 900 MW will be supplied through an “off-grid” model, with power sourced from natural gas plants developed by partner companies—avoiding any burden on the general electricity grid. Meanwhile, to mitigate regional burdens from large-scale infrastructure expansion, the Canadian government has introduced “Responsible Data Center Development Principles.” Endorsed by Bell and major U.S. technology companies, these principles stipulate that data center development costs to the power system must not be passed on to general electricity consumers, and that water usage and environmental impacts must be minimized.

As AI data center power demand surges, industrial activity around power supply infrastructure is accelerating. On the same day, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the shipbuilding intermediate holding company of HD Hyundai, announced it had received Approval in Principle (AIP) from the American Bureau of Shipping (ABS) for a 100 MW-class floating power generation facility (BMPP). Floating power generation facilities mount power generation engines on vessels to produce electricity at sea and supply it to shore. They can serve data centers and industrial complexes where onshore power infrastructure is difficult to build or where large-scale power is needed on short timelines. The facility developed by HD KSOE incorporates the HiMSEN engine, a medium-speed engine independently developed by HD Hyundai Heavy Industries, and is designed to reliably supply up to 100 MW of power. With this certification, HD KSOE has received official recognition for the facility’s basic concept design, electrical single-line diagram, and stability review. The company plans to enter the floating power generation market in earnest after completing detailed design and subsequent certification procedures. The floating power generation market is viewed as having high potential as power demand grows rapidly with AI industry expansion and data center construction. Data centers must secure large-scale power reliably, but land acquisition and environmental regulations constrain the rapid construction of onshore power plants. Floating power generation facilities offer the advantage of reducing the onshore land burden for power plant construction while being deployable near power demand centers. An HD KSOE official said, “Stable and flexible power generation and supply capability is a core competitive advantage in the AI era,” adding, “We will further advance our floating power generation technology to lead the global power infrastructure market.”

Bell’s Saskatchewan project and HD Hyundai’s floating power generation facility reflect the same trend. As explosive growth in AI computing demand intensifies data center construction competition, the key constraint is no longer IT equipment but power supply capability. Bell has adopted an “off-grid” approach to secure 1.2 GW of power capacity without relying on the existing grid. The plan involves developing natural gas plants dedicated to the data center, avoiding any burden on the general power network. HD Hyundai’s floating power generation facility similarly offers an alternative for supplying power through offshore generation in areas where onshore land acquisition is challenging. However, Bell’s 900 MW expansion remains at a non-binding memorandum of understanding stage. With customer contracts, permits, and environmental assessments still ahead, full realization could take considerable time. The C$52.5 billion investment figure cited by the Canadian government is also premised on “full realization.” The Canada Investment Summit opened on the 14th in Toronto. With the world’s largest asset managers and major foreign investors in attendance, investment attraction efforts spanned multiple sectors including energy, critical minerals, and defense. Former Prime Ministers Jean Chrétien and Stephen Harper also attended the announcement, demonstrating bipartisan support for the project. As AI infrastructure investment expands into infrastructure-grade projects requiring gigawatt-scale power procurement, reconciling power development with mitigating regional infrastructure burdens has emerged as a key challenge going forward.