Canada's largest telecommunications company, BCE Inc., is moving faster than planned with the expansion of its new artificial intelligence business unit, Bell AI Fabric. Soaring demand for data centre capacity across the country is driving the accelerated timeline, with CEO Mirko Bibic confirming that facility construction is now ahead of schedule.
Accelerated Growth and Strategic Partnerships
The growth of AI Fabric from a standing start in May of 2025 is faster than I anticipated, Bibic stated during remarks in Montreal. The company launched the division last year with the goal of providing substantial computing power, equivalent to 73 megawatts of electricity—enough to power more than 30,000 homes.
BCE is not building this capacity alone. It has enlisted partners including Groq Inc. and Hive Digital Technologies Ltd., who are responsible for the majority of the investment and server management. BCE itself has committed $300 million in capital expenditure to the initiative. The company expects this investment to generate approximately $400 million in revenue by 2028.
In a significant move for its AI capabilities, Bell AI Fabric has also entered a partnership with Canadian tech unicorn Cohere Inc. to utilize Cohere's advanced generative AI models within its infrastructure.
Data Centre Expansion and Canadian Advantage
The physical build-out of data centres is progressing rapidly. The first facility opened in Kamloops, British Columbia, in June 2025. A second centre in the nearby city of Merritt is slated to become operational by March of this year, with additional facilities scheduled to launch later in the year.
Bibic highlighted a strategic advantage for Canada in the global AI landscape. He suggested the country could be seen as an extremely attractive, neutral site to host data, a crucial factor amid worldwide concerns over data sovereignty. In that regard, I think Bell AI Fabric could have a significant edge while operating in Canada, he added.
Broader AI Ambitions and Revenue Goals
Bell AI Fabric is just one component of BCE's broader push into artificial intelligence. The company has consolidated previous acquisitions into an IT consulting firm named Ateko and has also launched Bell Cyber, a service that uses AI to detect and contain cyber threats.
Collectively, these AI-driven ventures are central to BCE's ambitious financial targets. During an investor presentation in October, the company revealed its goal is to generate about $1.5 billion in revenue from AI-powered solutions by 2028.
For now, BCE maintains a disciplined approach to its initial investment. Bibic confirmed the company has no current plans to invest beyond the announced $300 million, though he acknowledged that faster growth would be a wonderful problem to have. The accelerated rollout signals strong market demand and positions BCE as a major contender in Canada's rapidly evolving AI infrastructure sector.
