Canada builds sovereign AI infrastructure to keep data cozy, warm and at home

Canada is making a bold play for AI independence. Buzz High Performance Computing (Buzz HPC), a subsidiary of publicly-traded Hive Digital Technologies, has partnered with Bell Canada to build nationwide AI infrastructure that keeps sensitive data entirely within Canadian borders—a concept known as “sovereign AI.”

This partnership addresses a growing concern among governments and enterprises: maintaining control over their most sensitive data while accessing cutting-edge AI capabilities. Rather than relying on foreign cloud providers, Canadian organizations will soon have access to powerful AI computing resources hosted exclusively in Canadian-owned facilities.

The infrastructure backbone

The collaboration centers on Bell AI Fabric, Bell’s ambitious initiative to create Canada’s largest AI computing network. Buzz HPC will integrate its Nvidia-powered computing clusters with Bell’s fiber network and data centers, creating a comprehensive AI platform designed specifically for Canadian clients.

The technical foundation includes clusters of Nvidia’s most advanced graphics processing units (GPUs)—specialized chips that excel at the parallel processing required for AI training and inference. These include Nvidia’s Ampere, Hopper, and upcoming Blackwell architectures, connected through high-speed Nvidia Quantum-2 InfiniBand networking that enables the GPUs to work together seamlessly on massive AI workloads.

For context, modern AI models require enormous computational power. Training a large language model like those powering ChatGPT can require thousands of GPUs working in coordination for weeks or months. The infrastructure being deployed will make such capabilities accessible to Canadian organizations without sending their data abroad.

Rollout timeline and scale

The deployment follows a carefully planned timeline designed to establish nationwide coverage. The partnership launches later this year with a 5-megawatt facility in Manitoba—enough power to run several thousand GPUs simultaneously. This initial deployment will be followed by expansion into additional Bell AI Fabric data centers across multiple provinces.

To put this scale in perspective, Bell AI Fabric’s broader vision includes upwards of 500 megawatts of hydroelectric-powered AI computing capacity across six facilities. The first Bell AI Fabric facility already came online in June through a partnership with AI inference provider Groq, featuring a 7-megawatt facility in Kamloops, British Columbia. Additional facilities are planned through 2026, including a 26-megawatt data center being built in partnership with Thompson Rivers University.

The sovereignty imperative

The partnership reflects growing demand for “sovereign AI”—artificial intelligence infrastructure that operates entirely within a nation’s borders and under its jurisdiction. This approach has become increasingly important as governments and enterprises recognize that AI systems often require access to their most sensitive data to function effectively.

Frank Holmes, executive chairman at Buzz HPC, framed the initiative as foundational for Canada’s digital independence. “Sovereign is the new standard for cloud computing, and this partnership with Bell marks the beginning of a new era for AI innovation in Canada,” Holmes stated. The infrastructure will serve both domestic clients and international customers seeking Canadian-hosted AI services.

John Watson, group president for business markets and AI at Bell, emphasized the practical benefits for Canadian organizations. “Buzz HPC is one of the few Canadian cloud service providers with a purpose-built AI cloud that has experience operating GPU clusters at scale,” Watson explained. The partnership provides “an important layer in the Bell AI Fabric ecosystem delivering the advanced workloads our customers need in a sovereign, private and secure Canadian facility.”

Market implications

This infrastructure development positions Canada to compete more effectively in the global AI economy while maintaining data sovereignty. The partnership specifically targets Canadian government agencies and enterprises that require AI capabilities but cannot risk sending sensitive data to foreign cloud providers due to regulatory requirements or security concerns.

The collaboration also includes Canadian AI firm Cohere, adding another layer of domestic AI expertise to the ecosystem. This integration of Canadian companies across the AI stack—from infrastructure to software—creates a more complete sovereign AI offering.

Looking ahead

The Buzz HPC and Bell partnership represents more than just another data center expansion. It’s a strategic bet on Canada’s ability to maintain technological sovereignty while participating in the global AI revolution. By providing domestic alternatives to foreign cloud providers, the initiative could accelerate AI adoption among Canadian organizations that have been hesitant to use overseas services.

The success of this approach could serve as a model for other nations seeking to balance AI innovation with data sovereignty, particularly as artificial intelligence becomes increasingly central to economic competitiveness and national security.