Bell Canada Expands 900MW to Consolidate Leading Position in Sovereign AI

Bell Canada is accelerating its sovereign AI computing ambitions, announcing plans to quadruple the size of its Saskatchewan data center over the next decade.

The operator stated that it will add 900MW of data center capacity in the province, after announcing an initial 300MW in March. At the time, the company stated that the first phase of the project would be launched in the first half of 2027. According to the TD Cowen team’s report to investors, Bell expects the 900MW incremental computing power to be put into operation “within 10 years”.

The operator emphasized that its new development will comply with Saskatchewan’s Responsible Data Center Development Principles, and the 900MW increment will be powered by natural gas electricity developed by Bell Canada partners. Bell stated that the facility will also adopt closed-loop cooling technology to minimize water usage.

Bell Canada CEO Mirko Bibic stated in a statement, “Canada’s next-generation economic growth will be built on Canada’s infrastructure. By creating a path to 1.2GW of AI capacity in Saskatchewan, Bell AI Fabric will provide the secure, sovereign foundation needed for governments, businesses, researchers, and innovators to deploy AI on a large scale and compete globally.”

Building a Sovereign AI Empire

Its expansion in Saskatchewan marks the continued growth of Bell AI Fabric, a sovereign AI service launched by the operator in May 2025. Bell also has AI Fabric data centers in British Columbia and Manitoba.

Vince Valentini, Managing Director of TD Cowen, told Fierce that Bell appears to be one of the most organized participants in Canada’s entry into sovereign AI infrastructure, with dedicated departments, construction partners, and established partnerships for big language models. Although competitor Telus is also paying attention to this market, Bell is “starting fast,” Valentini said. Although Telus’ new CEO has outlined plans to organize and do more in this field, Bell has gained some first mover advantage.

Valentini also praised Bell’s AI infrastructure business model. It is worth noting that he said the operator did not attempt to become Neocloud. “They don’t build AI computing themselves, don’t buy chips, and don’t put electronic devices in buildings. They just make the shell, pack everything up and prepare it, and then rent out the interior space to various tenants,” Valentini said. “But they reserve the right to say, ‘Hey, if you need help selling some computing power… we can open the door for you.”

Spend money to earn money

Despite adopting a relatively light asset approach, this investment holds significant importance for Bell. Valentini pointed out that its initial project in Saskatchewan was expected to cost approximately CAD 1.7 billion for a 300MW capacity. Based on this calculation, an additional 900MW will increase capital expenditures by approximately CAD 5.1 billion. Given that Bell’s annual capital expenditure is around 3 billion Canadian dollars, “this is quite important for them,” even if the funds are disbursed over multiple years, Valentini said.

He added, “This makes you feel like it’s a big part of their capital expenditure commitment for the next few years.” According to our calculations, it will become important starting in 2028.” According to Bell’s guidance, Valentino stated that the AI infrastructure business is expected to grow to approximately CAD 525 million EBITDA by then. Although it won’t account for 30% or 40% of its income, “it’s starting to become more meaningful. I think most people see this as a fairly large new venture for Bell,” he concluded.