Ottawa eyes $1.5B to $1.8B data centre for CSE

The federal government is looking at building a 60-megawatt data centre in the Ottawa area for the Communications Security Establishment (CSE), with an estimated cost of $1.5 billion to $1.8 billion, according to a procurement notice reported on Oct. 15.

Updated Oct. 17, 2026. The government has not yet approved the project, according to the notice as reported by CTV News Ottawa.

Defence Construction Canada issued the advance notice to design-builders the week before the report, CTV News Ottawa said. A tender is expected in 2027. The notice describes tailored mechanical and electrical configurations for future technology needs, plus a small office space and a shipping and receiving area.

In a statement to CTV News Ottawa, CSE said the facility would add secure computing capacity for its current and future operations. The agency said the project is part of broader federal defence investments to modernize secure infrastructure, and that planning and site selection are ongoing. It said it will not disclose operational or technical requirements beyond what is already public, to protect national security.

The notice says the data centre will focus on the “mid to long-term objectives” of government operations, security and technology. MobileSyrup, which also reported the story, said construction timing depends on final plans. The Western Standard put the cost as high as $1.85 billion, a slightly higher ceiling than the range in the CTV report.

The proposal lands as data centres draw growing scrutiny in Ottawa. In September, the federal government released its Responsible Data Centre Development Principles, which set five expectations: lasting local benefits, no shifting of electricity costs to Canadians, minimal water use and environmental impact, transparency about local effects and strategic value to Canada. The principles are not legally binding, MobileSyrup noted.

Power supply is a live concern locally. Hydro Ottawa chief executive Bryce Conrad told city council in June that the utility had received 34 requests over two years from large-load customers, which would need nearly 90 per cent of the power the City of Ottawa used on average in 2025. Data centres accounted for 653 of the 1,075 megawatts requested, CTV reported. Conrad has also said the utility is being asked to build in two or three years what took about 110 years to build.

Ottawa city council directed staff in August to develop a framework for assessing data centre proposals, covering size, impact, environmental and industrial standards, and community benefits. A 60-megawatt site would be a large single draw on that grid, although the notice does not say where in the National Capital Region it would go or which utility would supply it.

The report came the same day the federal government added $500 million to a regional AI program, bringing it to $700 million. Industry is also pushing ahead on private projects, including Bell’s request for 895 more acres for an AI data centre in Saskatchewan, and a Vancouver data summit this week looked at the West’s AI infrastructure build-out.

Unlike those commercial projects, the CSE facility would serve national security work, which means public detail is likely to stay limited. For now, the cost range, the 60-megawatt size and the 2027 tender timing are the main confirmed figures.

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Sources: CTV News Ottawa via CP24 (Oct. 15, 2026), MobileSyrup (Oct. 15, 2026), Western Standard (Oct. 15, 2026).