Canada plans CA$1.85bn data center for National Capital Region

Canada has opened a procurement track for a data center worth between CA$1.5bn (US$1.06bn) and CA$1.85bn (US$1.31bn). Defence Construction Canada published an Advanced Procurement Notice (APN) for the project on October's public tender channels. The facility will sit in the National Capital Region of Ontario and deliver 60MW of IT capacity.

The contract itself is a "modify design built" arrangement. Defence Construction Canada expects to post it in the winter of 2027. That gives bidders roughly two years to prepare, and one requirement stands out early: the winner must hold security clearance, which the corporation will sponsor for applicants who apply now.

What does the notice actually say?

The APN lays out the government's purpose in its own words. "To increase its capacity in supporting the mid- to long-term objectives related to operations, security, and technology modernization, the Government of Canada is planning to design and construct a data center facility within the National Capital Region," the notice states.

The document then describes the technical scope. "This data center of 60MW will enable the onboarding of next-generation capabilities with tailored mechanical and electrical configurations to meet distinct technology requirements throughout the facility," it reads. "The proposed data center facility will also include a small office space and a shipping and receiving area."

In plain terms, the government wants halls it can configure zone by zone. Different workloads need different power and cooling setups. A single uniform design would waste capacity on some loads and constrain others.

What does this change for bidders?

Security clearance is the gating item. Clearances take months to process, sometimes longer for large contracts. Defence Construction Canada is offering sponsorship now, before the tender appears, which signals it wants a prepared bidder pool rather than a scramble in 2027.

The known parameters, in summary:

• Contract value: CA$1.5bn to CA$1.85bn (US$1.06bn to US$1.31bn)
• IT capacity: 60MW
• Contract type: "modify design built"
• Expected tender posting: winter 2027
• Site: National Capital Region, Ontario; exact location undisclosed
• Ancillary space: small office area plus shipping and receiving

Who is running the procurement?

Defence Construction Canada is a crown corporation founded in 1951. It handles infrastructure and environmental projects for Canada's Department of Defence. Its current portfolio includes the Edward Drake Building in Ottawa, air hangar construction, and energy performance contracts.

The corporation does not design or build these projects itself. It manages procurement and delivery, which is why an APN matters. The notice is not a tender. It is a market-sounding exercise that tells contractors what is coming and lets them start clearance work early.

What remains open?

Two gaps stand in the record. The APN gives no exact location for the facility. It also gives no construction timeline. Both details will presumably arrive with the formal tender in 2027.

The absence of a timeline makes cost planning hard for bidders. A 60MW build is a multi-year effort once a contractor breaks ground, and the CA$350m spread between the low and high contract values suggests the government itself has not fixed the scope. Bidders will read that spread as room for negotiation, and as a sign that the design phase carries real influence over the final price.

For now, the market signal is clear. Canada's defence infrastructure arm wants hyperscale-class capacity inside its capital region, it is willing to pay nearly CA$2bn for it, and it wants cleared contractors lined up well before the tender drops.