Production / Operations
Bell AI Fabric Expands National Network with 300 MW Data Centre in Saskatchewan
BCE · Price
Executive Summary
- Bell Canada announced a new 300 MW AI‑focused data centre in Saskatchewan, representing a $1.7 bn incremental capex ($1.3 bn in 2026) funded with cash and debt.
- The project is expected to generate up to $12 bn of economic value for the province and will come online in stages beginning H1 2027.
- BCE updated its 2026 financial guidance and 2025‑2028 outlook, raising AI‑powered solutions revenue target to $2.0 bn by 2028 and reflecting the impact of the new data centre on capital intensity, free cash flow, and leverage.
Key Details
- Project Scope: 300 MW purpose‑built AI data centre in Rural Municipality of Sherwood, Saskatchewan; largest AI‑centric facility in Canada.
- Economic Impact: Projected provincial economic value up to $12 bn; ~800 construction jobs, ≥80 permanent full‑time roles, plus potential 750 community jobs.
- Construction Timeline: Groundbreaking slated for spring 2026; first data hall operational H1 2027; full rollout in stages thereafter.
- Power Allocation: Significant portion of power dedicated to sovereign AI compute for government, research and enterprise users (data residency requirements).
- Tenants/Partners: Cerebras (wafer‑scale AI inference/training) and CoreWeave (NVIDIA GPU‑based compute); partnership with SaskTel for fibre connectivity.
- Indigenous & Community Collaboration: Agreement with George Gordon First Nation for procurement participation and workforce development; exploration of waste‑heat reuse via district energy system.
Financial Guidance Updates
| Metric | 2025 Actual | 2026 Prior Guidance | 2026 Updated Guidance |
|---|---|---|---|
| Revenue growth | 0.2 % | 1 %–5 % | No change (0.2 %) |
| Adjusted EBITDA growth | 0.7 % | 0 %–4 % | No change |
| Capital intensity | 15.1 % | <15 % | ~20 % (≈$1.3 bn incremental capex) |
| Adjusted EPS growth | –7.9 % | (11 %)‑(5 %) | No change |
| Free cash flow growth | 10 % | 4 %–10 % | (34 %)‑(28 %) |
| Annualized dividend per share | $1.75 | $1.75 | No change |
- AI‑powered solutions revenue target: raised from ~$1.5 bn (2028) to ~$2.0 bn (2028).
- Capital Expenditure: $1.7 bn total for the data centre; $1.3 bn expected in 2026, financed via a mix of debt and cash‑on‑hand.
- Leverage Impact: Transaction is leverage‑neutral on an adjusted EBITDA basis; BCE aims to keep net‑debt/EBITDA ≤ 3.5× by end‑2027, falling below that in 2028, with a longer‑term target of ~3.0× by 2030.
Conference Call
- Date & Time: March 16, 2026 at 08:00 a.m. ET
- Dial‑in: 1‑800‑990‑2777 (or 416‑855‑9085), Conf ID 93039; webcast available on BCE website.
Notable Quotes
- Mirko Bibic, President & CEO, BCE: Emphasized the strategic importance of sovereign AI compute and the $12 bn economic impact.
- The Honourable Scott Moe, Premier of Saskatchewan: Highlighted job creation and research capacity benefits.
- Andrew Feldman, CEO, Cerebras; Sachin Jain, COO, CoreWeave: Expressed excitement about delivering cutting‑edge AI infrastructure to Canadian customers.
All forward‑looking statements are subject to risks and uncertainties detailed in the release.
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