Canada Seeks Industry Partners to Build Sovereign AI Data Centers Exceeding 100MW

Canada Launches Initiative for Large-Scale Sovereign AI Data Centers January 23, 2026 The Canadian government has issued a formal call for proposals from businesses to construct large-scale, sovereign artificial intelligence (AI) data centers, marking a strategic push to secure domestic compute capacity and reduce reliance on foreign infrastructure. The move underscores a growing global trend where nations are prioritizing digital sovereignty, particularly in critical and rapidly evolving fields like AI, to safeguard economic and strategic interests. The Ministry of Innovation, Science, and Economic Development (ISED) announced it is seeking industry partners interested in building facilities with a power capacity exceeding 100 megawatts (MW). These data centers must be designed to serve a broad spectrum of Canadian clients. In a statement, the ministry indicated that preference will be given to projects demonstrating a clear path to completion, those that include Indigenous participation, minimize environmental impacts, and maximize the use of Canadian partners and supply chains. Evan Solomon, Canada's AI Minister, framed the initiative as a bold step to secure the nation's technological future. "This initiative aims to strengthen Canada’s AI sovereignty, drive economic growth, support Indigenous participation, and maximize the use of Canadian partners and supply chains," Solomon stated in a LinkedIn post. The government plans to sign memorandums of understanding with selected companies to explore mechanisms enabling such large-scale commercial builds. It remains unclear whether direct funding or incentives, similar to the UK's AI Growth Zones, will be offered to developers. The call for proposals comes amid heightened geopolitical tensions and a reassessment of international dependencies. Many Canadian companies currently rely on digital infrastructure from U.S.-based vendors. Prime Minister Mark Carney, addressing the World Economic Forum in Davos, warned of a "rupture" in the established international order and emphasized a new approach to business with the United States. "On AI, we're cooperating with like-minded democracies to ensure that we won't ultimately be forced to choose between hegemons and hyperscalers," Carney said, highlighting the strategic imperative behind the data center initiative. Businesses have until February 15 to submit their proposals via the ISED website. The success of this initiative could significantly reshape Canada's digital infrastructure landscape, fostering a more resilient and self-sufficient AI ecosystem while potentially creating a new wave of domestic investment in construction, technology, and green energy partnerships. Source: datacenterdynamics