Ottawa Plans a $1.5 to $1.8 Billion Data Centre: Advance Notice Issued for Design-Build Contract

6 days ago

2 min read

The federal government is planning a major new data centre in the National Capital Region. Defence Construction Canada (DCC) has issued an advance procurement notice for the project, giving design-builders early warning of an upcoming contract with an estimated cost of $1.5 billion to $1.8 billion. The tender itself is not expected until 2027.

What the notice says

Project: Design and construction of a data centre facility in the Ottawa area.
Estimated cost: $1.5 billion to $1.8 billion.
Size: A 60 MW facility, with mechanical and electrical configurations tailored to different technology requirements.
Facility scope: The data centre would include a small office space and a shipping and receiving area.
Tender timing: Expected in 2027.
Purpose: To support the government's mid to long-term operational, security and technology modernization objectives.

Who it is for

The Communications Security Establishment (CSE), Canada's cyber and signals intelligence agency, says the proposed facility would provide additional secure computing capacity for its current and future operational requirements. CSE describes it as part of broader defence investments to modernize secure infrastructure and capabilities.

Not yet approved

Two important caveats for anyone planning around this project:

The notice states that the federal government has not yet approved proceeding with the new data centre.
CSE says project planning and site selection are still ongoing, and that it does not disclose operational or technical requirements beyond what is public.

This is an early signal, not a solicitation. Scope, budget and timing could all change before a tender is issued.

The wider data centre debate

The announcement lands as data centres draw growing attention in the region and nationally:

The federal government released Canada's Responsible Data Centre Development Principles in September. They set five expectations: lasting local benefits, no shifting of electricity costs to Canadians, minimal water use and environmental impact, transparency about local impacts, and strategic value to Canada.
In August, Ottawa city council directed staff to develop a framework for assessing data centre proposals.
Hydro Ottawa told council in June that it had received 34 requests from large-load customers in two years. Data centres accounted for 653 of the 1,075 megawatts requested.

Power supply is a real constraint, and any bidder will need to show how a facility of this size gets its electricity.

What this means for suppliers

Start early. With a tender expected in 2027, there is time to assemble a team, and large design-build projects favour consortiums that are already formed.
Think beyond the prime. A 60 MW facility involves electrical and mechanical systems, cooling, civil works, site services and specialized trades, all of which create subcontracting opportunities.
Expect security requirements. This project supports a national security agency, so check whether security clearances will be required and plan lead time accordingly.
Watch the power and community angles. The government's data centre principles and local power constraints are likely to shape how bids are evaluated.

How to position your business

Track Defence Construction Canada notices through CanadaBuys and Bids Advantage so you see the tender when it is released.
Review your organization's security clearance status and any teaming partners.
Prepare to speak to power efficiency, water use and local benefits in your approach.