Canada Plans $1.8 Billion National Security Data Centre in Ottawa

Defence Construction Canada has issued an advance procurement notice for a proposed hyperscale data centre in the National Capital Region. Estimated to cost between $1.5 billion and $1.85 billion, the 60-megawatt facility is designed to support the Communications Security Establishment by providing secure computing capacity to modernize infrastructure and address national security threats.

While the federal government has not yet formally approved the project, the notice allows potential suppliers to obtain required classified security clearances before a solicitation process expected in 2027. The project aligns with the Responsible Data Centre Development Principles launched in September, which require such facilities to provide strategic value while minimizing environmental impact.

The proposal comes as Bryce Conrad, CEO of Hydro Ottawa, warns of unprecedented power demand driven by AI and data centres. Conrad noted that data centres account for 60% of the 34 large-load requests received over the last two years. In response, the City of Ottawa is developing a framework to assess data centre proposals based on size and environmental impacts, with a final plan expected in 2027. The city may implement interim control bylaws to pause hyperscale projects until this policy is finalized.