TELUS Expands Canada’s Sovereign AI Data Centre Network

TELUS is moving forward with a major expansion of Canada’s sovereign AI infrastructure through a proposed cluster of artificial intelligence data centres in British Columbia. The project, developed with the Government of Canada and Westbank, is part of the federal Enabling Large-Scale Sovereign AI Data Centres initiative. Its goal is to give Canadian businesses, researchers, startups, public institutions, and government organizations access to powerful AI computing systems while keeping sensitive data, intellectual property, and economic benefits within Canada.

The announcement comes after TELUS’ first Sovereign AI Factory in Rimouski, Quebec, opened in September 2025 and became fully sold out. According to TELUS, that demand showed a strong need for Canadian-built AI infrastructure. The new B.C. cluster will include an expansion of TELUS’ existing Kamloops facility and two new Vancouver locations. The Kamloops AI Factory is expected to come online later this year, while the M3 facility in Vancouver’s Mount Pleasant neighbourhood is planned to open at the end of 2026 and scale through 2028. A second Vancouver facility at 150 West Georgia Street is expected to come online in 2029.

At full scale, TELUS says the three-site cluster will grow to more than 60,000 high-performance GPUs and 150 megawatts of computing capacity by 2032. The facilities will use advanced NVIDIA technology to support large-scale AI model training, complex simulations, production-scale deployment, and large-scale inference. TELUS has also emphasized that the infrastructure will be owned, operated, and governed in Canada, which is a major part of the project’s focus on sovereignty and technological independence.

TELUS and government officials are also presenting the project as an economic opportunity for British Columbia and Canada. TELUS CEO Darren Entwistle said the expansion could inject about $9 billion into the Canadian economy, while creating more than 1,000 construction jobs and hundreds of high-skilled operations roles. Federal AI Minister Evan Solomon said the project is part of Canada’s effort to compete in the global AI economy while ensuring Canadian innovation and data remain on Canadian soil. Vancouver Mayor Ken Sim also supported the plan, saying the facilities could strengthen Vancouver’s position as a major technology hub and help attract investment, talent, and research.

A major focus of the proposal is sustainability. TELUS says the facilities will run on 98% clean energy and use closed-loop liquid cooling systems that reduce cooling energy consumption by 80% compared to traditional data centres. The company also says the system will use 90% less water than typical data centres and could recycle waste heat to help warm the equivalent of 150,000 homes. The Vancouver facilities are expected to connect with district energy systems in Mount Pleasant and downtown Vancouver, with plans to include recycled water from BC Place.

However, the plan has also raised concerns. Critics argue that AI data centres can place heavy pressure on power and water systems, especially as demand for AI computing continues to grow. B.C. Green Party Leader Emily Lowan criticized what she called a “build-first regulate-later” approach and called for a pause on new data centres until stronger environmental rules and community consultation are in place. Overall, the TELUS project represents a major step in Canada’s effort to build its own AI infrastructure, while also showing that the growth of AI data centres will need to be managed carefully and responsibly.

Works Cited

Chan, Kenneth. “Telus to Build Massive AI Data Centres at Two Westbank Properties in Vancouver.” Daily Hive, 11 May 2026, dailyhive.com/vancouver/telus-sovereign-ai-factory-data-centre-vancouver-westbank-project-locations. 

TELUS. “TELUS and Government of Canada Advance Work to Scale Canada’s Sovereign AI Infrastructure.” TELUS, 11 May 2026, www.telus.com/en/about/news-and-events/media-releases/TELUS-and-Government-of-Canada-advance-work-to-scale-Canadas-sovereign-AI-infrastructure. 

Little, Simon. “Plan Unveiled for ‘Sovereign AI Data Centre’ Cluster in Kamloops, Vancouver.” CBC News, 11 May 2026, www.cbc.ca/news/canada/british-columbia/b-c-ai-data-centre-plan-vancouver-kamloops-9.7195426. 

“TELUS CEO Darren Entwistle.” BetaKit, betakit.com/steel-concrete-and-code-feds-and-telus-announce-three-ai-data-centres-in-bc/. 

“TELUS CEO Says Company, Investors Spending $1B on New AI Data Centres in B.C.” Business in Vancouver, www.biv.com/news/technology/telus-ceo-says-company-investors-spending-1b-on-new-ai-data-centres-in-bc-12265991.