The federal government has earmarked another $15 billion for data-centre development.

The commitment was outlined in the government’s fall economic statement. The allocation comprises incentives to encourage Canada’s largest pension funds to invest in green-powered artificial intelligence data centres.

The funds would be part of a $45-billion program that includes equity and loans.

The fall economic statement serves as a potential preview of the federal budget scheduled for spring 2025.

The government’s goal is to stimulate economic growth by enticing pension funds to make larger, homegrown investments. Pension funds have become to receive more scrutiny and criticism as, in many cases, they favour international investments over domestic opportunities.

For much of this year, a national debate has unfolded over whether Canada’s pension funds invest enough domestically, the Globe reported. Prominent business leaders have urged Ottawa to implement rule changes to encourage more local investments. Pension fund executives, however, have pushed back, emphasizing their independence and responsibility to generate the best possible returns for beneficiaries without taking undue risks.

The government’s end goal is to attract capital to Canada by inviting pension funds to make more big-ticket investments in the country, a fourth source told the Globe. The government has paired this approach with measures to reduce investment barriers and increase transparency around where funds allocate members’ money, according to the publication.

The federal government’s push to accelerate AI data centre development reflects its belief that Canada has the potential to become a global leader in artificial intelligence technology.

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