BCE invests C$1.7 billion in Saskatchewan AI data center with CoreWeave and Cerebras

BCE Partners with CoreWeave and Cerebras on Major Infrastructure Project

Canadian telecommunications firm BCE has announced a C$1.7 billion investment to construct a 300-megawatt data center dedicated to artificial intelligence computing in Saskatchewan, marking one of the country's most ambitious AI infrastructure projects 1

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. The facility, to be located on the southern edge of Regina in the rural municipality of Sherwood, will serve as a regional hub for advanced computing and help expand Canada's AI ecosystem 2

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. CoreWeave Inc. and AI chipmaker Cerebras Systems Inc. have secured capacity as anchor tenants, with CoreWeave and Cerebras claiming 140 and 160 megawatts respectively 1

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Massive Economic Impact and Job Creation Expected

The purpose-built AI data center project is projected to generate economic value of approximately C$12 billion over time, according to BCE 3

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. Construction of the facility is expected to support at least 800 trades and engineering jobs, with a minimum of 80 full-time roles created once it's fully operational 3

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. As many as 750 additional community jobs are also anticipated 3

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. BCE Chief Executive Officer Mirko Bibic described the initiative as the company's largest-ever investment in Saskatchewan, stating it will bring major economic benefits to the province and create a competitive advantage for the country 3

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Strategic Technology Partnerships and Computing Power

Cerebras Systems Inc. will supply AI chips for large-scale training and computing, while CoreWeave Inc. will provide AI computing capacity using Nvidia Corp. graphics processing units 2

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. The industry standard values compute hardware at approximately C$35 million per megawatt, which would equal C$10.5 billion for the Saskatchewan project, Bibic noted in an interview 1

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. Bell Canada is working with the provincial government to build and run the AI data center, which will be connected to Bell's fibre network through a partnership with SaskTel 5

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. The two telecommunications companies will act as go-to-market partners to offer AI-powered solutions and services to SaskTel customers 5

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Timeline and Financial Implications for BCE

Construction is set to begin this spring, with the facility coming online in phases and the first stage expected to be operational in the first half of 2027 2

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. BCE expects to incur about C$1.3 billion in capital expenditures in 2026 for the construction of this facility, with the investment funded through a combination of debt and cash on hand 2

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. The Montreal-based telecom company has cut its free cash flow guidance for 2026 due to the project's expense, now expecting no more than C$2.3 billion this year, down from a previous forecast of as much as C$3.5 billion 4

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. However, the data center will add to revenue growth and earnings power over the next few years, the company said 1

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Sovereign AI Compute and Strategic Independence

A significant portion of the facility's power will support sovereign AI compute, addressing Canada's efforts to reduce its economic and security dependence on the US since President Donald Trump imposed tariffs a year ago 3

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. Bibic emphasized that contracts ensure a significant proportion of the compute will be reserved for sovereign purposes as that sovereign demand evolves 1

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. The company introduced its Bell AI Fabric division last year, aiming to provide computing power of some 500 megawatts over time 1

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. With the 300 megawatts of the Saskatchewan data center added to that target, Bibic stated the company now sees line of sight to a total of 800 megawatts 1

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. BCE raised its forecast for AI-powered solutions revenue to about C$2 billion by 2028, up from about C$1.5 billion earlier, with revenue from these solutions expected to rise by C$500 million 5

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