Microsoft Cloud North: $7.5B AI Data Center Expansion Quebec
Status: Under Construction (Superstructure complete at multiple sites) | Location: Quebec City, Donnacona
Project Overview
Formally unveiled in December 2025, the $7.5 billion CAD "Cloud North" project is the centerpiece of Microsoft’s $19 billion five-year investment in Canada. This massive build-out focuses on expanding the Canada East region in Quebec to support the "Sovereign AI Supercycle." The expansion includes three primary new campuses: Donnacona (groundbreaking Feb 2024), Lévis (groundbreaking April 2024), and L’Ancienne-Lorette (groundbreaking June 2024). As of March 2026, construction at these sites is entering the final fit-out phase, with the electrical substations at L’Ancienne-Lorette nearing completion. This project is specifically designed to meet Canada’s new digital sovereignty requirements, offering in-country data processing for Microsoft Copilot and Azure Local capabilities. In line with Microsoft’s "Community-First" initiative launched in Jan 2026, these facilities are engineered to be carbon-negative and water-positive by 2030, utilizing advanced air-cooling to protect local watersheds.
Quick Facts
| Field | Value |
|---|
| Project Name | Microsoft Cloud North: $7.5B AI Data Center Expansion Quebec |
| Location | Quebec City, Donnacona |
| Status | Under Construction (Superstructure complete at multiple sites) |
| Commissioning | Phase 1: H2 2026 |
| Total IT Load | Not Publicly Disclosed (Gigawatt-scale portfolio) |
| Total Capacity | Multi-campus cluster across 3 Quebec sub-regions |
| Tier Level | Tier III+ (Sovereign & AI Optimized) |
| Project Type | Hyperscale AI & Sovereign Cloud Infrastructure |
City Profile
| Header | Details |
|---|
| City Name | Quebec City |
| Population | ~556,000 |
| Urban Agglomeration | ~839,000 |
| City GDP | ~USD 47–50 Billion |
| Per Capita Income | ~USD 52,000 |
| City Tier | Tier 2 – Established Government & Technology Hub |
| Key Strengths | Provincial government center, strong public sector employment, growing technology and AI ecosystem, tourism and cultural heritage, stable infrastructure and connectivity |
Companies Involved
| Header | Details |
|---|
| Developer / Operator | Microsoft |
| Strategic Infrastructure Partner | Government of Canada / Investissement Québec. |
| Construction Contractor | Pomerleau (Lévis), Ames Construction (Donnacona), Dinamo (L’Ancienne-Lorette). |
| MEP Engineering | Microsoft Global Data Center Engineering. |
| Network Connectivity | Redundant low-latency fiber mesh connecting Toronto and Quebec regions. |
| Power Infrastructure | 100% renewable hydroelectric power provided by Hydro-Québec. |
Technical Specifications
| Header | Details |
|---|
| Power Capacity | Scaling to meet 2027 demand targets |
| UPS Redundancy | $N+1$ with focus on battery backup over diesel. |
| Cooling System | Advanced air-cooling; optimized for the Canadian climate to minimize PUE. |
| Connectivity | Direct link to Azure Canada Central (Toronto) for high availability. |
| PUE Target | < 1.12 |
| Energy Mix | 100% Renewable (Hydro-Québec grid). |
Milestones
| Header | Details |
|---|
| Announcement | December 9, 2025 |
| Construction Start | H1 2024 (Phased) |
| Phase 1 Go-Live | H2 2026 |
| Full Buildout | 2027 |
Investment Details
| Header | Details |
|---|
| Total Investment | $7.5 Billion CAD |
| Funding | Microsoft Corporation Capital Expenditure. |