The federal government is looking to build a data centre in the national capital region to support Canada’s cyber spy agency, saying it will focus on the “mid to long-term objectives” of government operations, security and technology.
Defence Construction Canada issued an advance procurement notice for the data centre last week, saying it is informing “design-builders of an upcoming contract located” in the Ottawa area.
The estimated cost of the project is $1.5 billion to $1.8 billion, with the tender expected to be issued in 2027.
“To increase its capacity in supporting the mid to long-term objectives related to operations, security, and technology modernization, the Government of Canada is planning to design and construction a data centre facility within the national capital region,” said the notice issued on the federal government’s website.
“This data center of 60 MW will enable the onboarding of next-generation capabilities with tailored mechanical and electrical configurations to meet distinct technology requirements throughout the facility.”
The Communications Security Establishment Commission (CSE) says the proposed data centre would provide “additional secure computing capacity” to support its “current and future operational requirements.”
“It is part of the Government of Canada’s broader defence investments, including investments through CSE to modernize the secure infrastructure and capabilities needed to respond to evolving threats and support Canada’s national security and defence priorities,” CSE said in a statement to CTV News Ottawa.
“Project planning and site selection activities remain ongoing. Additional information will be shared as decisions are finalized and appropriate to disclose. To protect national security and the integrity of its operations, CSE does not disclose specific operational or technical requirements beyond what is publicly available.”
The federal government launched Canada’s Responsible Data Centre Development Principles in September, outlining how Canada builds the data centre capacity it needs.
According to the government, the principles “sets five clear expectations” for data centre projects:
- Data centres must create lasting local benefits.
- Data centres must not shift electricity costs to Canadians.
- Data centres must minimize water use and environmental impacts.
- Data centres must be transparent about local impacts.
- Data centres must bring strategic value to Canada.
The government’s proposed data centre facility for CSE would include a “small office space and a shipping and receiving area,” according to the notice. It also notes the federal government has not approved proceeding with the new data centre at this time.
Data centres have “tremendous appetite for power”
In August, Ottawa city council passed a motion directing city staff to develop a framework for assessing data centre proposals. The study will look at assessing data centres based on their size and impact, including environmental and industrial standards, community benefits and possible amendments to the official plan.
Hydro Ottawa’s CEO Bryce Conrad told council in June that the utility had received 34 requests in the past two years for “large load customers,” which would require nearly 90 per cent of the average amount of power used by the City of Ottawa in 2025.
“These are prospective customers who need a significant amount of electricity, think of government, national defence, hospitals, university campuses, and yes, data centres,” Conrad said, noting data centres accounted for 653 megawatts of the 1,075 megawatts requested to Hydro Ottawa.
“It’s no secret that there’s a lot of tension these days around data centres, AI technologies, and their tremendous appetite for power.”
During an interview with Newstalk 580 CFRA in August, Conrad said Hydro Ottawa is working to build capacity to meet the demand for data centres and large-load customers.
“We’re probably being asked to build in the next two or three years, that which has taken us about 110 years to build.”
