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Canada is planning a secure Ottawa-area data-centre facility for the Communications Security Establishment (CSE), the federal agency responsible for cyber operations and signals intelligence. Defence Construction Canada documents put the preliminary cost at $1.5 billion to $1.8 billion. The project is not a public cloud site or consumer hosting campus, and the government had not approved proceeding when the plan was reported on October 15, 2026.
What the federal government is proposing
An advance procurement notice from Defence Construction Canada describes a planned data-centre facility within the National Capital Region. Its stated purpose is to increase capacity for the government’s “mid- to long-term objectives” involving operations, security and technology modernization.
The notice, reproduced in contemporaneous coverage, describes a 60-megawatt facility with a small amount of office and shipping/receiving space. A megawatt figure describes the planned electrical capacity of the site; the public notice does not break that number into computing, cooling or other loads.
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Who would use the facility?
The intended user is CSE, Canada’s cyber and signals-intelligence agency. CSE operates secure government systems and capabilities that support national security and defence missions. The proposed site is therefore sovereign federal infrastructure for classified or otherwise protected work, rather than commercial colocation space that businesses could rent.
CSE says it does not disclose specific operational or technical requirements beyond information already made public. The agency cites national-security and operational-integrity concerns, so details such as server platforms, classified network design, redundancy targets, physical security layers and the precise site are not available.
Has Ottawa approved construction?
Not at the time of the October 15, 2026 report. The reproduced procurement notice said the government had not approved proceeding with the new data centre. That status matters: an advance notice can signal intended procurement and invite market preparation, but it is not a construction award, a funding release or a guarantee that the project will proceed unchanged.
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When could bidding begin?
The notice indicates that a tender is expected in 2027. It does not provide a firm tender date, a winning-contractor date or a construction start. No public completion date was available, and the schedule could change if approvals, design, security requirements, site selection or procurement decisions change.
Why CSE says the project matters
In an attributed statement quoted October 15, 2026, a CSE spokesperson said the agency is part of “broader defence investments” to “modernize the secure infrastructure and capabilities needed to respond to evolving threats and support Canada’s national security and defence priorities.”
That places the data centre in a wider modernization effort. Additional capacity can support continuity and expansion of secure government computing, but the public material does not specify which applications will move to the facility or whether it will replace existing sites.
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Electricity, water and local-impact questions
The proposal arrives amid a federal data-centre framework that emphasizes several public-interest considerations:
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- protection of Canadians from electricity costs being shifted onto them;
- reduced water use and other environmental impacts;
- transparency about effects on host communities; and
- strategic value to Canada.
The framework was described as policy guidance, not a legally binding set of project conditions, when the plan was reported. It should therefore be read as a direction for evaluating data-centre proposals rather than proof that this facility has already met specific energy, water or community targets.
A 60 MW design makes grid connection, backup generation, cooling, water demand and emissions important questions for later approvals. None of those project-specific figures has been made public. Until a site, design and environmental information are released, it is not possible to calculate the facility’s local electricity or water impact.
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What is known—and still unknown
| Item | Publicly reported information |
|---|---|
| Client | Communications Security Establishment (CSE) |
| Location | Ottawa area, within the National Capital Region; exact site not disclosed |
| Estimated cost | $1.5 billion–$1.8 billion, Defence Construction Canada estimate for 2026 |
| Planned capacity | 60 MW, according to the reproduced procurement notice |
| Other space | Small office and shipping/receiving areas |
| Procurement timing | Tender expected in 2027 |
| Approval | Proceeding had not been approved when reported |
| Construction completion | Not stated |
| Technical and security specifications | Not disclosed beyond public information |
What to watch next
The next meaningful milestones would be a formal approval, publication of a tender, identification of a site and grid-connection plan, and release of environmental or community-impact information. Future announcements can also clarify whether the final capital cost, electrical capacity, procurement model or schedule differs from the early notice.
For now, the accurate description is a proposed federal CSE data centre in the Ottawa area: potentially a $1.5 billion–$1.8 billion, 60 MW secure facility, with bidding anticipated in 2027 but construction not yet approved and no completion date announced.
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