Canada Expands AI Compute Capacity in B.C.

Sovereign AI Compute in Canada

Canada is aiming to catch up in "sovereign AI compute," an increasingly essential area for the country’s AI sector. “Compute” refers to the powerful computer servers and processors that run AI applications. “Sovereign” refers to the amount of compute capacity a country has within its borders, which has gained importance due to international trade concerns.

Canada's AI Compute Capacity

Canada has some domestic AI computing power, but not at scale. Gail Murphy, vice-president of research at the University of B.C., mentioned the need for more compute resources for both research and to support small- and medium-sized enterprises, to build solutions at home.

Bell and Telus Expand AI Infrastructure in B.C.

Bell Canada and Telus are planning to expand AI infrastructure in B.C. Bell has revealed its AI Fabric plan, which is a network of six data centres in B.C., and aims to provide computing power for research institutes and businesses. The first of two seven-megawatt centres is set to open in Kamloops this June, with another in Merritt by the end of the year. These centres will use data processing technology from Groq.

In 2026, Bell plans to open the first of two 26-megawatt data centres in Kamloops at Thompson Rivers University. The second is planned to open in 2027. Bell is in the advanced planning stage for two more AI data centres in B.C., each designed to use 200 megawatts of power. CEO Mirko Bibic said the company is “bolstering Canada’s AI compute capacity, while laying the groundwork to continue growing our AI economy.”

Telus announced that it will put a NVIDIA supercomputer-powered data centre in Kamloops that will form a sovereign AI factory as part of its $15-billion capital spending plan for B.C. Company chief information officer Hesham Fahmy said that the AI factory will give “customers the accelerated computing power needed to grow, compete globally and shape the future of AI right here in Canada.”

Kamloops as a Prime Location

Bell chose Kamloops for its first sites because of its stable climate, its position as a hub for Canada’s fibre optic cable network, and its access to B.C. Hydro’s grid. Kamloops is close to Vancouver, Calgary and Seattle, but has a lower cost of living, which will help with recruiting and retaining skilled employees.

Clean Energy Initiatives

Telus will power its AI factory by 99 per cent renewable energy, and Bell highlighted its hydroelectric powered compute. Bell’s commitments to provide computing power requiring 500 megawatts of power means its new data centres could use almost half of the 1,100-megawatt capacity of B.C. Hydro’s new Site C Dam.

Jobs Minister Diana Gibson said the province is rushing to increase its generating capacity and is committed to dramatically increase its renewable energy sector “and to ensuring that it comes online quickly.”

Sovereign Compute Strategy

Handol Kim, CEO of Variational AI, noted the increased risks to other countries after witnessing attempts to restrict companies from selling processing chips to China. Kim said that “Inherently, it’s very good for us to have a sovereign compute strategy, just like it’s good to have a sovereign power strategy, a sovereign strategy around the supply of resources to enable economic growth,”