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Bell framed the investment in the new AIDC as part of a structural shift in infrastructure demand
In sum – what to know:
Infra-first AI strategy – Bell is focusing on infrastructure, not chips, using a tenant-funded model to avoid hardware risk while targeting stable, infra-like returns.
Fully contracted capacity – The 300 MW facility is already backed by long-term agreements with Cerebras and CoreWeave, reducing demand and pricing exposure.
Strong financial profile – The project requires CAD1.7B in capex and is expected to generate CAD500M revenue, and CAD400M EBITDA.
Canadian operator Bell is moving deeper into AI infrastructure with a 300 MW data center in Saskatchewan, as executives position the project as a response to rising demand for sovereign, large-scale AI capacity and a core pillar of its AI Fabric strategy.
The facility, located near Regina, will be the largest purpose-built AI data center in Canada, according to Bell, with construction starting this spring and initial capacity expected online in 2027.
Speaking during a conference call, Bell’s president and CEO Mirko Bibic framed the investment as part of a structural shift in infrastructure demand: “AI is rapidly becoming foundational infrastructure for governments, enterprises and research institutions, particularly in regulated data sensitive environments,” Bibic said.
He added that customers are increasingly prioritizing integrated infrastructure models: “What customers are telling us very clearly is that they don’t just need access to compute. They need secure, sovereign, Canadian controlled infrastructure integrated with connectivity, security and services.”
“We’ve secured long term tenant agreements with Cerebris and CoreWeave, two large global AI leaders with strong access to capital,” Bibic said.
Under this model, tenants will supply and fund the compute hardware, while Bell provides the physical infrastructure.
“Bell’s role is the infrastructure layer where we have a durable advantage,” Bibic said. “Importantly, we are not buying chips and we’re not speculating on future technology winners or cycles.”
Executives emphasized that this structure reduces exposure to volatility in AI chip markets while ensuring predictable, infrastructure-like returns.
According to John Watson, group president of business markets and AI Fabric, the project is already fully contracted, reducing demand risk from the outset.
“Our contracts are long-term and structured to provide infrastructure-led cash flows, and Bell does not take uncontrolled exposure to AI utilization or AI pricing,” Watson said.
The facility will be built in phases, with each stage coming online sequentially through 2027 and beyond.
“We will construct the Saskatchewan data center in phases, with each phase coming online in sequence,” Watson said, adding that Bell is relying on experienced external contractors: “We’re not self-building. We’re deliberately selecting experienced partners with proven delivery track records at this scale.”
From a financial perspective, the project represents a major capital commitment. Curtis Millen, chief financial officer of BCE, said the development will require approximately CAD1.7 billion ($1.24 billion) in incremental capex, with most spending expected in 2026.
At full capacity, the data center is projected to generate CAD500 million in annual revenue, CAD400 million in EBITDA, and more than CAD250 million in free cash flow.
The site will connect to Bell’s fiber backbone through a partnership with SaskTel and support a broader ecosystem of AI services through Bell’s AI Fabric platform.
Bell Canada is positioning itself to capture a larger share of the booming AI services market, projecting CAD1.5 billion in AI-related revenue by 2028, more than double current levels, Bibic said during a presentation at the company’s investor day in Toronto in October 2025.
