Government of Canada launches call for proposals for large scale sovereign AI data centres

The Government of Canada has launched a national process to identify and advance large‑scale sovereign AI data centre projects, marking a significant step in expanding the country’s AI infrastructure and strengthening its innovation ecosystem. As artificial intelligence becomes increasingly central to economic growth, the federal government aims to ensure that Canadian researchers, businesses, and institutions have access to the computing capacity needed to remain competitive.

This initiative aligns with Budget 2025, which proposes $925.6 million over five years starting in 2025–26 to establish a sovereign, large‑scale public AI computing infrastructure. The investment is intended to expand national AI compute availability and ensure secure, sovereign access for both public‑ and private‑sector research, positioning Canada to compete globally.

Through this intake, led by the Minister of Artificial Intelligence and Digital Innovation, the federal government is engaging with industry to identify promising projects, explore potential support mechanisms, and coordinate across jurisdictions to enable the development of large‑scale AI infrastructure.

Overview of the initiative

Canada has launched a one‑month federal intake to identify and advance “sovereign, large‑scale AI data centres” exceeding 100 megawatts (MW), with selected proponents entering memoranda of understandings (MOUs) with the Government of Canada to explore support mechanisms and intergovernmental coordination.

The intake is intended to bring forward proposals from domestic firms and consortia for commercial‑scale AI data centres capable of supporting high‑performance AI workloads across academia, industry, and government, while strengthening Canada’s long‑term digital and compute capacity.

Proposals now being accepted

The intake period runs from January 15–February 15, 2026. Qualified Canadian organizations are invited to submit an intake form detailing:

• how their project aligns with federal criteria;
• how it will address national AI compute needs; and
• how it will foster cross-sector partnerships and innovation 

To receive an intake form, email the Government of Canada.

Eligibility and evaluation criteria

Proposed projects must involve sovereign AI data centres with a planned capacity exceeding 100 MW. These facilities are expected to support a wide range of Canadian users. Priority will be given to projects that demonstrate a credible development pathway, meaningful Indigenous involvement, a reduced environmental footprint, and strong reliance on Canadian suppliers and partnerships.

The intake form collects detailed information about the applicant organization, project readiness, technical scope, timelines, and the project’s alignment with the Government of Canada’s evaluation criteria. The form requires proponents to outline their corporate structure, operational footprint, financial position, governance, site readiness, utility arrangements, zoning status, Canadian vendor engagement, and identification of prospective tenants.

Applicants must use the intake form to show how their proposed data centre satisfies key assessment areas, including:

• economic and ecosystem benefit, including contributions to Canada’s innovation capacity;
• Indigenous participation and partnership opportunities, whether through ownership, engagement, or other collaboration;
• sovereignty factors, such as Canadian control of the project, data residency in Canada, and reliance on Canadian suppliers;
• energy and environmental considerations, including electricity and water supply readiness and overall environmental footprint;
• performance capabilities required for advanced AI workloads and national compute needs;
• project readiness, including permitting status, utility agreements, development timelines, and overall feasibility; and
• project cost and ownership structure, with clarity on financial design and capital arrangements.

Submission and review process

Proponents must submit their completed intake forms by email before February 15, 2026.

This will be a competitive evaluation. Intake forms may be shared, as needed, with federal partners, including Invest in Canada, Canada Infrastructure Bank, Export Development Canada, Major Projects Office and/or provincial/municipal authorities to support assessment and potential referral.

To streamline reviews, the government may use AI to summarize submitted materials. 

What this means for organizations

This initiative represents a major federal commitment to building Canada’s AI capacity. Organizations exploring large‑scale data centre development, including technology companies, energy developers, Indigenous‑led partnerships, and infrastructure investors, may find significant opportunities through this process.

Early preparation is encouraged, including readiness assessments, Indigenous engagement strategies, financial modelling, and supply chain planning.

Find out more

DLA Piper’s team of AI lawyers, data scientists, and policy specialists helps organizations navigate the complex workings of their AI systems and comply with current and developing regulatory requirements. Recognized by Chambers Global as a 2025 Global Market Leader in Artificial Intelligence and named by BTI Consulting Group as a 2026 GenAI Litigation Powerhouse, DLA Piper is trusted globally for its leadership and innovation in the field. We continuously monitor updates and developments arising in AI and their impact on industry worldwide.

For more information on AI and the emerging legal and regulatory standards, visit DLA Piper’s focus page on AI.

Gain insights and perspectives that will help shape your AI strategy through our AI ChatRoom series.

For further information or if you have any questions, please contact any of the authors.