Ottawa Plans $1.5 Billion Data Centre for Canada's Cyber Spy Agency

The federal government plans to design and build a large data centre in the National Capital Region for Canada's cyber spy agency, the Communications Security Establishment, at an estimated cost between $1.5 billion and $1.8 billion.

The project surfaced in an advance procurement notice posted on the MERX contracting site by Defence Construction Canada. The notice said the facility would support the government's mid to long term objectives in operations, security and technology modernization. It would draw 60 megawatts of power, enough for at least 30,000 homes.

What the agency says

In a statement to CTV News Ottawa, the Communications Security Establishment said the project sits inside the government's broader defence investments, aimed at modernizing the secure infrastructure the agency needs to respond to changing threats and to support national security and defence priorities. The agency said it does not disclose specific operational or technical requirements beyond what is public, to protect national security and its operations.

The advance notice is not a request for proposals. It gives companies time to obtain the security clearances a contract of this kind would require. The actual contract is expected to be posted early next year, and the notice warned there is no guarantee the contract will proceed or that clearances will be granted on the expected timelines. News of the project landed the same week as a federal announcement of $500 million in additional AI funding.

A live local fight

Data centres are already a contested issue in the Ottawa area. City council passed a motion more than a month ago asking staff to study and develop a framework for assessing data centres by size and impact, with a report due early next year. Oakville and Mississauga have both imposed one year moratoriums on new data centres while they study the question. Ontario set out its own framework in August, built on economic development, data protection and sovereignty, and community investment and public confidence. Federal guidelines for data centre projects call for lasting local benefits, no shifting of electricity costs onto Canadians, low water use and clear reporting of local impacts.

The issue has also entered Ottawa's municipal election campaign, where mayoral candidates have been pressed on how the city should handle large facilities. Tech analyst Carmi Levy, speaking on CTV, warned that a 60 megawatt facility consumes a large amount of power, generates noise and creates few permanent jobs once it is automated.

What happens next

Interested firms now have a window to line up clearances before the formal contract posting expected early next year. The price range, the power draw and the end user, one of the most secretive agencies in the federal government, mean the project will draw scrutiny from city hall, from Queen's Park and from Parliament long before construction starts.