Not many people know it, but it’s true.
Canadian companies are among the largest suppliers of energy to U.S. AI companies, as well as some of the largest operators of AI data centers. In this article, I explore just a few of the many Canadian companies building AI infrastructure, starting with one that might surprise you.
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BCE Inc
B.C (TSX:BCE) is a Canadian telecommunications company best known for operating media outlets and providing mobile/internet services to Canadians. Few have ever seen this company expand into AI, but now that’s what’s happening.
BCE has made statements that it has been working on AI a long time ago; more recently it has made its plans clear. Last week, the company announced its plan to build an AI data center in Regina, Saskatchewan. Under the plan, Bell will build a massive 160-acre facility, with the aim of creating a national AI computer network.
What will BCE’s AI data center be used for?
For now, the program’s goals are vague, but BCE is known to partner with universities to fund research projects and sell computers to other companies. This project could therefore be a huge source of income for BCE.
Brookfield
Different from Brookfield Corporation (TSX:BN) subsidiaries are involved in building the Canadian and global AI infrastructure.
The most obvious, Brookfield Infrastructure Partners (TSX:BIP.UN) is building a network of AI data centers in Canada and the United States. The company signs long-term ‘take or pay’ deals with ‘hyperscalers’, where the big companies pay for the real estate, power grids and cooling systems, while bringing in their own servers. This is a smart business model because it means BIP.UN doesn’t have to pay for expensive items NVIDIA GPUs whose ROI is currently questionable. Instead, BIP.UN simply collects rent from the companies that make the big spends.
Less clear, Brookfield Renewable Partners (TSX:BEP.UN) supplies clean energy to America’s AI giants. The company has signed a supply agreement Microsoft with 10 gigawatts of clean energy by 2024; it followed that up by signing a similar deal with Alphabet in 2025. These deals are expected to generate billions in revenue. They will also likely raise Brookfield’s profile.
So Brookfield Corp is a company that, through its partially owned subsidiaries, is driving the AI revolution.
Granite
Granite REIT (TSX:GRT.UN) is a Canadian industrial real estate investment company that is currently exploring the possibility of converting some of its properties into data centers. It already has a portfolio of warehouses, multi-functional and specialist facilities serving industrial tenants. AI data centers are similar to warehouses in that they require a lot of space to mainly house things rather than people. Granite REIT isn’t making money directly from AI yet, but the plans and potential are both there.
Silly takeaway
The bottom line is that Canadian infrastructure developers are doing big things in AI. Generative AI requires power, data centers and telecom equipment, and Canada has all three of these key assets in abundance. This advantage positions the above companies perfectly in the age of AI, regardless of whether big tech ever sees a return on its GPU spend.
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