The Government of Canada has announced plans to invest $2 billion in data-centre development.

The funds are being provided to enhance Canada’s AI infrastructure and provide critical support for researchers, businesses, and innovators.

“We’re proud to be a driving force in the worldwide ecosystem, and by increasing access to domestic and secure compute capacity, we will help businesses, innovators and researchers boost the Canadian economy and stand out on the world stage,” said Innovation, Science and Industry MInister François-Philippe Champagne.

This is about Canada showing its ambition, supporting Canadian innovation and investing in the economy of the future,” said Champagne.

The initiative was first outlined in the 2024 budget. Ottawa is now providing more specific plans.

The government will invest up to $700 million will be invested through the AI Compute Challenge to support new or expanded data centres in Canada.

A $1 billion investment will fund sovereign supercomputing infrastructure, including a large-scale data centre and a secure computing facility.

And, small and medium-sized enterprises will be able to tap into the $300-million AI Compute Access Fund.

The comprehensive approach aims to address the short-, medium-, and long-term compute needs of Canada’s AI ecosystem while fostering innovation and ensuring global competitiveness, said the government.

Photo: Vantage Data Centres