The federal government is inviting proposals for the development of large-scale, sovereign AI data centres to significantly expand Canada’s domestic computing capacity.

Innovation, Science and Economic Development Canada (ISED) has opened a competitive intake process aimed at enabling commercial AI data centres with planned capacities exceeding 100 megawatts, as Ottawa looks to support the growing demand for artificial intelligence across the economy. The initiative builds on commitments outlined in Budget 2025, which task the Minister of Artificial Intelligence and Digital Innovation with engaging industry to identify viable AI infrastructure projects and formalize partnerships through memoranda of understanding.

The proposed facilities are intended to provide high-powered compute capacity to a broad range of Canadian users, including researchers, academic institutions and private-sector innovators. ISED says expanded access to advanced computing infrastructure is critical to helping Canadian businesses and institutions capitalize on AI-driven opportunities and support long-term economic growth.

Eligible Canadian firms and consortia are being asked to submit intake forms outlining how their projects meet federal objectives, address AI compute needs and foster cross-sector collaboration. Preference will be given to proposals that demonstrate a clear path to completion, include Indigenous participation, limit environmental impacts and maximize the use of Canadian partners and supply chains.

Proposals will be assessed based on criteria that include economic and ecosystem benefits, sovereignty considerations, energy use, performance capabilities, project readiness and overall cost structure. Intake forms must be submitted by February 15, 2026, following an application window that opened January 15.

ISED notes that submitted proposals may be shared with other federal agencies and, where appropriate, provincial and municipal governments as part of the evaluation process, and that artificial intelligence tools will be used to help summarize submissions during the review.

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