13.05.2026
Canada’s data centre construction market is growing fast. Major hubs are forming in Toronto and Montréal, driven by rising demand for sovereign AI, cloud computing, and cleaner energy.
Canada is positioning itself as a serious global player in digital infrastructure. The only question is whether it has the power to supply the data centres.
Canada as a Global Data Centre Hub
In Canada, there is rapid growth of the capability in data centres, especially those specialised towards AI where they need higher power, increased density, and increased convergence of physical and digital systems. This rapid growth of capability is increasing demand for qualified professionals in roles such as electricians, HVAC engineers, project managers, and commissioning engineers.
Canada is among the fastest-growing centres for data centres globally, thanks to its abundance of clean energy, cold weather, and increasing demand for AI. Canada generates 60% of its power from hydroelectricity sources, along with a robust nuclear power industry.
But rising energy consumption at data centres is creating strain on the electricity grid, leading some developers to consider local energy production or “bring your own power” alternatives. In addition, the industry is grappling with problems such as skills shortages, high transportation costs, and inadequate fiber infrastructure in some areas.
Power supply will shape Canada’s data centre future
With Canada’s digital infrastructure expanding, the focus of discussions has moved from construction to energy supply within data centres.
Workloads by artificial intelligence, hyperscale development, and increased cloud service consumption place immense strain on Canada’s power grids. Energy reliability, resilience, and availability are key concerns when it comes to investments in data centres.
Key roles powering Canada’s data centre expansion include:
- Power systems engineers managing grid connectivity and energy distribution
- Electrical engineers supporting substations, transmission, and backup systems
- Energy project managers overseeing utility coordination and infrastructure delivery
- Grid modernisation specialists improving resilience and network capacity
- Sustainability and energy transition experts integrating low-carbon power solutions
- Commissioning and operations professionals focused on uptime, redundancy, and operational continuity
With the rise of more industries, there is now a need for people who can handle not only digital infrastructure but also energy infrastructure. The data centre is no longer confined to technology alone; it is now a junction where energy production, utilities, energy infrastructure, and computing come together.
That overlap is where Canada’s next infrastructure challenge is emerging.
And that’s where Morson Edge supports clients. With a localised presence across Canada, we supply specialist talent that helps energy providers, utilities, developers, and infrastructure partners scale the power capacity needed to support the country’s growing data centre footprint.
The next wave of data centres: why Canada is attracting hyperscale investment
As of late 2025, there were around 337 data centres across Canada, with a growing pipeline of large-scale developments.
The country is drawing significant hyperscale investment, with capacity targets exceeding 10 GW. This growth is being driven by access to low-cost hydroelectric power, a naturally cold climate that reduces cooling costs, and rising demand for AI infrastructure.
According to the Mordor Intelligence Canada Data Center Market report, the market remains relatively concentrated. The top five operators account for just over 55% of installed capacity. Providers such as eStruxture, Equinix and Vantage operate across multiple regions, while Bell, Rogers and TELUS are expanding their data centre estates alongside existing network infrastructure to capture growing AI hosting demand.
Global hyperscalers including Microsoft and AWS are also scaling up their presence as available land, supportive data sovereignty policies, and a rapidly expanding artificial intelligence ecosystem are all accelerating investment.
Top 6 largest growing data centres in Canada
Much of Canada’s data centre growth is occurring in locations with ample power that is low-carbon and scalable. Both Québec and British Columbia are attracting new investments thanks to their access to hydroelectricity, whereas Alberta has become a key player in power-intensive AI infrastructure.
Canada’s data centre development plans will remain focused on Ontario due to its nuclear power production and future potential through projects such as SMRs and Bruce C. Hyperscalers are investing in multi-phase campus development based on energy resilience across the country rather than individual sites.
Power availability plays an equally important role in development in markets such as Toronto and Montréal alongside land availability. As a consequence, Canada sees the emergence of many hyperscale campuses, colocation facilities, and AI-ready facilities being built using billions of dollars worth of investment.
Overall, the pipeline is substantial, with billions committed to hyperscale campuses, colocation expansion and AI-ready infrastructure across the country.
Here’s a list of new data centres in Canada:
1. Wonder Valley Project – the world’s largest AI data centre
One of the most ambitious developments in Canada is the Wonder Valley project in Alberta. Designed as the ‘Largest AI Compute Data Center Park on Earth’ and led by investor Kevin O’Leary reflects the scale and direction of next-generation data centre builds.
The project is targeting up to 7.5GW of total capacity, delivered over a 5 to 10 year timeline. The construction might begin this year, with initial phases scheduled for 2027-2028. Phase 1 alone is expected to deliver around 1.4GW across 2,500 acres, backed by an initial investment of $2.8 billion CAD. Future phases will expand the site in stages, with additional capacity brought online incrementally rather than as fixed annual volumes.
At full build-out, the campus is expected to span tens of millions of square feet, with dozens of data centre buildings supported by dedicated energy and utility infrastructure. Total investment is projected to exceed $70 billion, covering power generation, facilities and supporting systems.
A key differentiator is the site’s integrated approach to energy. By combining geothermal and off-grid natural gas with access to established pipeline networks, water sources and fibre connectivity, the development is designed for long-term, scalable operation.
2. Mihta Askiy – from abandoned to natural gas-powered data centre
The Mihta Askiy Data Center project in Alberta represents a different model for powering data centre growth. Led by Woodland Cree First Nation, in collaboration with Sovereign Digital Infrastructure, the development will repurpose a partially completed power plant into a 650MW data centre powered by natural gas.
Located around 40 kilometres northeast of Peace River, the site will include a dedicated power generation facility designed to support on-site demand. The project will be delivered in two stages, initially using simple-cycle gas turbines before transitioning to combined cycle technology to improve efficiency.
Designed for a 30-year operational lifespan, the development reflects a broader shift towards “bring-your-own-power” models as grid capacity tightens. Commissioning is expected by 2027.
3. QScale Toronto Multi-dollar Hyperscale Facility
QScale is planning a multi-billion-dollar hyperscale data centre in Toronto, set to be one of the largest in Canada.
Investment is estimated between $2.5 billion and $4 billion CAD, with power infrastructure supported by Hydro One and additional backing from major financial institutions.
While capacity has not been disclosed, the project reflects QScale’s focus on high-density AI and HPC infrastructure, building on its 142MW Q01 campus in Québec, one entirely powered by clean energy.
4. Beacon Data Centres – a multi-site AI data centre portfolio
Beacon Data Centers, backed by Nadia Partners, is developing a 4.5 GW facility in Foothills County, near High River, Alberta, designed for high-density AI workloads.
With reported $10 billion CAD investment and plans to build over 2,000 acres, this plan involves development of six sites supported by on-site, behind-the-meter power generation. According to Stantec, an engineering services company, these facilities will create thousands of construction jobs and around 1,200 permanent jobs in Alberta.
“Beacon AI is redefining the data centre development industry to meet the growing demands of the AI era”
Josh Schertzer, CEO of Beacon AI Centers
Construction is targeting in-service dates beginning in late 2027 to 2028, with full build-out targeted by 2030.
5. eStruxture CAL-3 – Alberta’s largest data centre
eStruxture is the largest Canadian-owned data centre provider, and now it is expanding its Calgary footprint with CAL-3, a 90MW data centre in Rocky View County, around 5km north of the city.
Part of a wider expansion to support AI, eStruxture operates 15 data centres across Montréal, Calgary, Vancouver and Toronto. CAL-3 is designed for high-density AI and cloud workloads, and it follows a $750 million CAD investment to boost Alberta’s digital infrastructure.
The 300,000 sq. ft facility is set to become operational this autumn, building on the existing CAL-1 (9MW) and CAL-2 (20MW) sites. It will deliver power densities of 125kW+ per cabinet, with resilient cooling, redundant power systems and a Tier III design.
6. Bell Canada largest AI data centre campus near Regina
Bell Canada is planning a major AI-focused data centre infrastructure in the Rural Municipality of Sherwood, near Regina, as part of a broader push into digital infrastructure.
The 300 MW facility will support high-performance computing and AI workloads. It is backed by a long-term investment plan to expand Canada’s sovereign AI capacity.
The construction of the data centre is expected to support approximately 800 jobs in the trades in engineering, and a potential of 750 additional community jobs.
With the first stage of the project expected to be completed in the first half of 2027, the data centre represents a $1.7 billion investment.
Projects like these reflect growing interest in developing data centres beyond traditional hubs, tapping into new regions with available land, power and infrastructure.
Power demand and infrastructure challenges
The development of data centres is becoming increasingly dependent on power. Workload demands are raising power consumption, heat generation, and cooling demands in both hyperscale and colocation environments due to artificial intelligence.
The challenge is no longer just building capacity. It is securing the power infrastructure needed to sustain continuous, high-performance operations at scale.
It’s changing the game. Hyperscalers are creating multi-stage campuses that will take several years to complete, requiring hundreds of megawatts of power. Meanwhile, colocation companies are expanding their current operations to accommodate rising energy needs. Lastly, edge data centres are expanding in areas where speed and reliable power delivery are essential.
Power infrastructure is now central to Canada’s data centre expansion
With bigger data centres and more power-hungry AI computing loads, power availability becomes the driving factor behind whether and how things proceed.
Today, when developers think of setting up their plants, they consider issues of grid capacity, energy sustainability, and access to reliable energy before they consider locations. It is easier to make sure that you have power than it is to have a piece of land.
Energy needs are rising across the country, requiring more energy production, increased transmission capacity, and a smarter grid by utilities and infrastructure companies. Each of nuclear energy, hydroelectric energy, natural gas, and emerging renewable energy will have its role to play.
There is no longer any doubt about Canada’s capability of developing new data centres; the issue is its ability to provide sufficient energy production.
From plan to delivery: How Morson Edge supports Canada’s data centre growth
Building data centres now goes beyond just meeting construction deadlines. Energy, power, and grid infrastructure have become important factors for planning and executing data centres projects across Canada.
Morson Edge supports data centre and infrastructure projects by supplying specialist expertise across the energy, power, and advanced engineering sectors. With deep experience supporting complex infrastructure programmes, we understand the operational pressures behind hyperscale development and the infrastructure needed to sustain it.
This is a process that involves the entire project lifecycle, from power and electrical engineering to commissioning or decommissioning, project management, and operational capabilities.
For owners, operators, utilities, and contracting companies, hyperscaling means much more than simply deploying a data centre. The challenge comes in ensuring that you have the capability to deploy the requisite infrastructure to match.
Planning a data centre project in Canada? Make sure your delivery strategy includes the power infrastructure and specialist expertise to keep it moving.
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