Canada plans $1.5B data centre for cyber agency in Ottawa

The federal government is preparing to build a large data centre in the national capital region to support the Communications Security Establishment (CSE), Canada’s cyber intelligence agency. Defence Construction Canada issued an advance procurement notice last week, informing "design-builders of an upcoming contract located" in the Ottawa area.

Project Scope and Cost

According to the notice, the estimated cost of the project is $1.5 billion to $1.8 billion, with the tender expected to be issued in 2027. The facility is described as a "data center of 60 MW" designed to "enable the onboarding of next-generation capabilities with tailored mechanical and electrical configurations to meet distinct technology requirements throughout the facility."

The notice states the goal is "To increase its capacity in supporting the mid to long-term objectives related to operations, security, and technology modernization." The proposed facility would also include a "small office space and a shipping and receiving area." It is important to note that the federal government has not yet approved proceeding with the new data centre.

Security and National Defence

CSE stated that the proposed data centre would provide "additional secure computing capacity" to support its "current and future operational requirements." In a statement to CTV News Ottawa, CSE said the project "is part of the Government of Canada’s broader defence investments, including investments through CSE to modernize the secure infrastructure and capabilities needed to respond to evolving threats and support Canada’s national security and defence priorities."

CSE added that "Project planning and site selection activities remain ongoing" and that it does not disclose specific operational or technical requirements beyond what is publicly available to protect national security.

Power Demand and Local Impact

The announcement comes amid growing local concern over the energy consumption of data centres. In August, Ottawa city council passed a motion directing staff to develop a framework for assessing data centre proposals, looking at environmental standards and community benefits.

Bryce Conrad, CEO of Hydro Ottawa, told council in June that the utility had received 34 requests in the past two years for "large load customers." These requests would require nearly 90 per cent of the average amount of power used by the City of Ottawa in 2025. Conrad noted that data centres accounted for 653 megawatts of the 1,075 megawatts requested to Hydro Ottawa.

"It’s no secret that there’s a lot of tension these days around data centres, AI technologies, and their tremendous appetite for power," Conrad said. He added that Hydro Ottawa is working to build capacity, stating, "We’re probably being asked to build in the next two or three years, that which has taken us about 110 years to build."

Responsible Development Principles

In September, the federal government launched Canada’s Responsible Data Centre Development Principles. According to the government, these principles "sets five clear expectations" for data centre projects:

• Data centres must create lasting local benefits.
• Data centres must not shift electricity costs to Canadians.
• Data centres must minimize water use and environmental impacts.
• Data centres must be transparent about local impacts.
• Data centres must bring strategic value to Canada.

Why it matters

This project highlights the intersection of national security needs and local infrastructure challenges. While the federal government seeks to modernize its cyber capabilities through a significant investment in secure computing, it faces scrutiny regarding the strain such facilities place on local power grids and the need to adhere to new environmental and community standards.

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Sources

• bnnbloomberg.ca: Federal government issues advance notice to build data centre in Ottawa
• cp24.com: Federal government issues advance notice to build data centre in Ottawa
• ctvnews.ca: Federal government issues advance notice to build data centre in Ottawa
• ottawacitizen.com: Government planning $1.5B capital region data centre | Ottawa Citizen

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.