Microsoft Digital Backbone Canada
Status: Announced / Under Expansion | Location: Southern Ontario & Quebec, Canada
Project Overview
Microsoft’s December 2025 announcement marks a transformative $19 billion (CAD) commitment to scale Canada’s AI and cloud infrastructure. This project focuses on a massive expansion of the existing Azure Canada Central and Canada East regions. The initiative is not merely a capacity play but a strategic move toward "Digital Sovereignty," ensuring that Canadian data remains on local soil while providing the massive computing power required for next-generation AI workloads.
The expansion includes the deployment of advanced AI-optimised hardware, including Microsoft’s custom Maia 100 AI accelerators and the latest NVIDIA GB200 configurations. To handle the extreme heat generated by these high-density racks, the project integrates cutting-edge closed-loop liquid cooling systems.
A critical component of this launch is the Ottawa Threat Intelligence Hub, which integrates physical infrastructure with cybersecurity research. The project is designed to be "Carbon Negative" by 2030, utilising 100% renewable energy contracts and advanced water-recycling technologies that align with Canada’s stringent environmental goals. This build-out is expected to catalyze the local economy, supporting thousands of construction jobs and fostering a new ecosystem for Canadian AI developers like Cohere.
Quick Facts
| Field | Value |
|---|
| Project Name | Microsoft Digital Backbone Canada |
| Location | Southern Ontario & Quebec, Canada |
| Status | Announced / Under Expansion |
| Commissioning | Phase 1: Q4 2025 | Full Buildout: 2026–2028 |
| Total IT Load | Estimated 450 MW+ (Cumulative across regions) |
| Total Capacity | Multi-campus Hyperscale |
| Tier Level | Tier III+ Equivalent |
| Project Type | Hyperscale / AI-Ready Data Center |
City Profile
| Header | Details |
|---|
| City Name | Toronto (Greater Area) |
| Population | ~2.8 Million (City) |
| Urban Agglomeration | ~6.7 Million (GTA) |
| City GDP | ~$450 Billion CAD |
| Per Capita Income | ~$65,000 CAD |
| City Tier | Global Tier 1 Hub |
| Key Strengths | Financial Capital, AI Research (Vector Institute), Tech Talent |
Companies Involved
| Header | Details |
|---|
| Developer / Operator | Microsoft Corporation |
| Strategic Infrastructure Partner | Government of Canada (Digital Sovereignty Pact) |
| Construction Contractor | PCL Construction / EllisDon (Regional Partners) |
| MEP Engineering | Microsoft In-house / Aecom |
| Network Connectivity | Microsoft Global Network (Azure ExpressRoute) |
| Power Infrastructure | Hydro-Québec / Ontario Power Generation |
Technical Specifications
| Header | Details |
|---|
| Power Capacity | Up to 1.2 GW Total Site Potential |
| UPS Redundancy | N+1 / 2N Redundancy |
| Cooling System | Closed-Loop Liquid Cooling & Adiabatic Cooling |
| Connectivity | Carrier-neutral with Direct Fiber to US/Europe |
| PUE Target | 1.12 - 1.15 |
| Energy Mix | 100% Renewable (Hydro, Wind, and Nuclear) |
Milestones
| Header | Details |
|---|
| Announcement | December 9, 2025 |
| Construction Start | NA |
| Phase 1 Go-Live | Late 2025 (Initial Compute Nodes) |
| Full Buildout | 2028 |
Investment Details
| Header | Details |
|---|
| Total Investment | $19 Billion CAD (~$14 Billion USD) |
| Funding | Corporate Reinvestment / Microsoft Capital |