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ARTICLE · 13 JULY 2026

Data Centres In Canada: Current State

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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As artificial intelligence reshapes the global economy and data centres account for over 25% of worldwide greenfield investment, Canada faces a critical infrastructure challenge: how to site, build, and power these facilities at scale. With electricity generation managed by provincial authorities, each jurisdiction has developed distinct regulatory approaches to balance grid capacity constraints with the economic opportunities presented by this rapidly growing sector.

CanadaEnergy and Natural Resources
John Vellone
John Vellone
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Data centres have rapidly emerged as a dominant force in global infrastructure investment, accounting for more than 25 per cent of global greenfield investment in 2025. While they generate fewer jobs and contribute less to GDP than other sectors, such as natural resources, jurisdictions across the world are actively seeking to attract these projects to secure data sovereignty, boost national security and bridge tech leadership gaps. Yet as AI reshapes the global economy, a central constraint is emerging: the capacity to site, build, and power data centres at sufficient scale.

Canada is an attractive setting for data centre development, owing to its cold climate, abundance of hydroelectric power and proximity to the United States market. Yet, Canada remains a comparatively small player. As of early 2026, the U.S. boasted 40.6 GW of live data centre capacity, compared to Canada’s modest 1.4 GW of live capacity in September 2025.

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