In the rugged landscape of Canadian telecommunications, where frigid winters and vast distances have always demanded resilience, Telus Corp is making what could be its most ambitious bet yet. The Vancouver-based telecom giant announced yesterday its plans to pour $70 billion into national infrastructure over the next five years, with a particular focus on artificial intelligence data centers and next-generation network capabilities.
The investment package represents about $14 billion annually, marking a significant increase from its previous capital expenditure plans. What’s particularly notable is how squarely this positions the company at the intersection of two critical trends reshaping our digital economy: the relentless demand for connectivity and the explosive growth of AI computing requirements.
“We’re witnessing a fundamental shift in how networks need to function,” explains Darren Entwistle, Telus President and CEO. “The AI revolution isn’t just about software – it’s creating unprecedented demands on physical infrastructure. Our networks need to become both more robust and more intelligent simultaneously.”
According to documents filed with regulators, approximately $30 billion will target traditional network enhancement – expanding 5G coverage to reach 99% of Canadians by 2028 and beginning foundational work on future 6G technologies. But it’s the remaining $40 billion that signals the company’s strategic pivot.
Telus plans to build three major AI-optimized data centers in British Columbia, Ontario, and Quebec, creating what they’re calling “Canada’s first purpose-built AI compute backbone.” These facilities will feature specialized hardware including thousands of advanced GPUs and custom cooling systems designed specifically for the intense processing demands of large language models and other AI applications.
The timing aligns with growing concerns about Canada’s AI readiness. A recent Royal Bank of Canada report highlighted that despite being home to pioneering AI research, Canada risks falling behind in commercial applications due to infrastructure constraints. The report noted that Canadian companies currently route approximately 68% of their advanced AI workloads through American data centers – a situation that raises both economic and data sovereignty questions.
Catherine Rosenberg, Canada Research Chair in Future Internet at the University of Waterloo, sees the move as potentially transformative. “What’s interesting about this announcement isn’t just the dollar figure, but the integrated approach. Telus is essentially building for an economy where network infrastructure and compute resources need to function as a unified system.”
The investment also comes with significant job creation promises – approximately 12,000 new positions across engineering, construction, and technical operations over the five-year period. About 40% of these roles will be in AI-related fields, including machine learning engineers and AI operations specialists.
For everyday Canadians, the company claims the investment will translate to tangible benefits beyond faster download speeds. Telus highlighted several practical applications, including more responsive emergency services through AI-enabled predictive systems and improved rural healthcare access through enhanced telemedicine capabilities.
Industry observers note the announcement comes against a backdrop of intensifying competition. Rogers Communications completed its $26 billion acquisition of Shaw Communications last year, creating a formidable rival with expanded network reach. Meanwhile, Bell Canada has been aggressively expanding its own fiber network footprint and exploring AI applications.
“The telecom landscape is undergoing a fundamental transformation,” says Vass Bednar, Executive Director of McMaster University’s Master of Public Policy in Digital Society Program. “These aren’t just communication companies anymore – they’re becoming the foundation of our digital economy. The question is whether our regulatory frameworks are keeping pace with this evolution.”
The initiative isn’t without challenges. Telus’s ambitious capital plan comes as the company navigates a complex economic environment. Rising interest rates have increased borrowing costs, while ongoing inflation has put pressure on consumer spending. The company’s stock has remained relatively flat over the past year, trading around $22 on the Toronto Stock Exchange following the announcement.
Financial analysts are cautiously optimistic. “The size of this investment suggests a strong belief in both the future demand for these services and Telus’s ability to capture meaningful market share,” notes Stephanie Price, telecom analyst at CIBC World Markets. “But execution will be critical, particularly in the AI data center space where they’ll be competing with established global players.”
The plan also includes environmental commitments. Telus states that all new facilities will be powered by renewable energy sources and designed to achieve at least 30% greater energy efficiency than industry standards. The company has pledged to reach net-zero emissions across its operations by 2030.
For Canada’s tech ecosystem, the ripple effects could extend beyond telecommunications. Local AI startups have consistently cited infrastructure constraints as barriers to growth. Greater domestic computing capacity could potentially nurture the next generation of Canadian AI companies.
As construction begins on the first new data center near Vancouver later this summer, the true test will be whether these massive investments can deliver on their promises – not just for shareholders, but for a country working to secure its place in an increasingly AI-driven global economy.
While $70 billion may seem like just another big number in today’s tech landscape, for a nation with just 40 million people spread across the second-largest landmass on Earth, it represents something more significant: a bet that Canada’s digital future depends on building homegrown capacity to connect, compute, and compete.
