In a landmark partnership, BCE Inc., CoreWeave Inc., and Cerebras Systems Inc. have announced plans to develop one of Canada's most powerful data centres, located in Saskatchewan. The first phase of this 300-megawatt facility is slated to become operational in the first half of 2027, marking a significant advancement in the nation's artificial intelligence infrastructure.
Strategic Collaboration and Location
The data centre will be situated on the southern edge of Regina, Saskatchewan, and will be dedicated exclusively to artificial intelligence computing. BCE, a leading telecommunications firm based in the Montreal region, revealed in a statement that AI chipmaker Cerebras and hyperscaler CoreWeave have secured 160 and 140 megawatts of capacity, respectively, as tenants for the new facility. CoreWeave's compute operations will be hosted on Nvidia Corp. graphics processing units, enhancing the centre's processing capabilities.
Economic Impact and Investment
BCE estimates that the project has the potential to generate approximately $12 billion in economic value over time. To support this initiative, BCE plans to invest $1.7 billion in constructing four data centre halls. However, this substantial expenditure has led the company to revise its free cash flow guidance for 2026, now expecting it to be no more than $2.3 billion, down from a previous forecast of up to $3.5 billion.
Despite the short-term financial adjustments, BCE anticipates that the data centre will contribute to revenue growth and earnings power in the coming years. Chief executive Mirko Bibic highlighted in an interview that the industry standard values compute hardware at about $35 million per megawatt, which translates to $10.5 billion for the Saskatchewan project, underscoring its scale and importance.
National Security and Sovereign Compute
This development aligns with Canada's broader efforts to reduce economic and security dependence on the United States, particularly following tariffs imposed by former President Donald Trump. Bibic emphasized that a significant portion of the compute capacity will be reserved for sovereign purposes, as demand evolves, ensuring national control over critical AI resources.
Expansion of AI Initiatives
BCE introduced its Bell AI Fabric division last year, with an initial goal of providing 500 megawatts of computing power over time. The addition of the 300-megawatt Saskatchewan data centre brings the company's total target to 800 megawatts, demonstrating a clear path toward expanded AI capabilities. Bibic stated, "That's our guidance, and we now see line of sight to a total of 800 megawatts."
Furthermore, BCE projects that revenue from AI-powered solutions will increase by $500 million, reaching $2 billion by 2028, highlighting the strategic importance of this venture in driving future growth.
Broader Implications
The collaboration between BCE, CoreWeave, and Cerebras not only boosts Canada's AI infrastructure but also positions Saskatchewan as a key player in the global technology landscape. This initiative is expected to attract further investments and talent, fostering innovation and economic development in the region.
As the project moves forward, it will be closely watched for its impact on both the local economy and Canada's technological sovereignty, setting a precedent for future large-scale data centre developments in the country.
