Investor Education

Data Centres in Canada: What the AI Buildout Means for Industrial Real Estate Investors

Published November 2, 2026 · 12 min read

Data centres in Canada are becoming a major infrastructure story — and their impact extends well beyond the buildings filled with servers. New AI infrastructure requires electricity, construction, equipment, logistics, maintenance, fabrication and a large network of supporting businesses.

For investors studying Western Canada industrial real estate, that broader physical footprint deserves attention. Canada’s data-centre market is also moving west.

Ontario and Québec remain established data-centre markets, but Alberta, Saskatchewan and British Columbia are attracting new projects as AI companies, telecom providers and hyperscale operators search for power, land and infrastructure.

For industrial real estate investors, the opportunity is not as simple as buying a data centre.

That is where the connection to conventional industrial real estate becomes much more interesting.

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Canada’s data-centre market is entering a new phase

Data centres support cloud computing, online services, financial systems, artificial intelligence and the growing amount of digital information created by businesses and consumers.

AI has significantly increased the amount of computing infrastructure required to process that information.

According to Colliers’ October 2026 Canadian Data Center Market Intelligence report, Canada has approximately 1,415 megawatts of commissioned data-centre capacity. Colliers is also tracking at least 5.5 gigawatts of named planned and under-construction capacity across Canada.

Most notably for Western Canadian real estate investors, Colliers reports that Alberta accounts for most of the visible development pipeline. It also identifies Alberta, British Columbia and Saskatchewan as markets broadening Canada’s data-centre activity beyond its traditional eastern base.

That represents a meaningful geographic shift. Historically, Toronto and Montréal were natural choices for Canadian data-centre development because of population, telecommunications infrastructure, customers and established technology ecosystems.

AI infrastructure is changing some of the site-selection criteria. The building still matters. But increasingly, power matters first.

Why power is changing data-centre real estate

Traditional industrial properties are commonly evaluated around factors such as:

• location
• transportation access
• building configuration
• clear height
• loading
• yard space
• proximity to customers
• local labour
• lease economics
• tenant demand

A large data centre adds another major consideration: can the site obtain enough reliable electricity?

Colliers describes Canada’s current data-centre expansion as a power-led growth cycle, with utility access, approvals and energization timelines increasingly determining which proposed projects can actually proceed.

Canadian law firm Fasken makes a similar point in its 2026 review of Canadian data-centre investment. Data-centre projects can require analysis of electrical interconnection rights, transmission capacity, fibre access, cooling, zoning, environmental approvals, water availability, cybersecurity and the ability to obtain additional power as computing requirements grow.

Canada may need much more computing capacity

This isn’t only a private-sector trend. Canada’s federal government is treating domestic computing infrastructure as part of its national AI strategy.

The federal AI for All strategy states that analysis suggests Canadian commercial users may require approximately 5.5 GW of AI compute capacity by 2030. The strategy identifies domestic data centres, cloud infrastructure and computing capacity as part of Canada’s broader push to build more AI infrastructure within the country.

At the same time, governments are becoming more selective about how large data centres are developed. Canada introduced its Responsible Data Centre Development Principles in September 2026. The framework calls for data-centre developments to:

• create lasting benefits for host communities
• avoid shifting project-driven electricity costs to existing ratepayers
• limit water consumption and environmental impacts
• provide transparency around local impacts
• create strategic benefits for Canada

This is important for investors. Strong demand does not mean every proposed project will be built. Power availability, economics, approvals, community support, financing and infrastructure can separate viable projects from announcements that never reach completion.

Why Alberta has become central to the Canadian data-centre discussion

Alberta is actively pursuing AI infrastructure as an economic development strategy. The Government of Alberta’s Artificial Intelligence Data Centres Strategy is based around three areas: power capacity, sustainable cooling and economic growth.

The province has also highlighted Alberta’s natural gas resources, power-generation capabilities and potential for dedicated energy infrastructure as part of its strategy.

Meta’s Sturgeon County data centre

In July 2026, Meta broke ground on its first Canadian data centre in Sturgeon County, Alberta. The project is planned as a 1 GW AI-optimized data centre representing an investment exceeding CA$13 billion.

Meta says construction is expected to support more than 3,000 workers at peak, with more than 300 operational jobs after completion. The company also announced approximately CA$60 million in local infrastructure improvements connected to the project.

The numbers are large. But from an industrial real estate perspective, the size of the data-centre building itself is only part of the story. A project of this scale requires a large physical supply chain. That can involve companies working in:

• electrical construction
• mechanical contracting
• steel and fabrication
• equipment supply
• power generation
• natural gas infrastructure
• civil construction
• warehousing
• transportation and logistics
• building maintenance
• security
• engineering
• telecommunications
• cooling systems
• specialized technical services

Many of those companies need conventional industrial property. They may need warehouses, service bays, fabrication space, outdoor storage, flex-industrial facilities, or smaller industrial units near the infrastructure projects they serve.

This is the connection that matters to InvestPlus Industrial REIT.

The industrial opportunity can extend beyond the data centre

InvestPlus Industrial REIT does not position itself as an owner or operator of data centres. Its focus remains income-producing industrial real estate. The investment thesis around data-centre expansion is therefore broader.

Large infrastructure investment can increase economic activity among the businesses building, supplying and maintaining that infrastructure. Those businesses still need places to operate.

Consider a hypothetical electrical contractor that wins ongoing work connected to several major infrastructure projects. The contractor might require:

• a warehouse for equipment
• secure storage
• office space
• service vehicle parking
• loading access
• proximity to its customers

That is conventional industrial real estate. The same can apply to mechanical contractors, fabrication companies, maintenance firms, equipment distributors and other industrial users.

This is why investors studying AI infrastructure should look beyond the headline project. The data centre may represent the centre of the investment announcement, but the supporting industrial activity can spread considerably farther.

Saskatchewan is becoming part of the story too

Alberta isn’t the only Western Canadian province attracting significant AI infrastructure. Saskatchewan is rapidly entering the discussion.

Bell is currently building its 300 MW AI Fabric data-centre campus in the Rural Municipality of Sherwood near Regina. As of October 1, 2026, the Government of Saskatchewan reported that:

• more than 500 people were working on the project
• all four first-phase building shells were taking shape
• more than 30 local firms were supporting construction
• the first data hall remained scheduled to come online during the first half of 2027

Bell and Saskatchewan have also announced a pathway toward a potential 1.2 GW AI infrastructure hub in the province. The larger proposal remains subject to development, approvals and execution, so announced future investment should not be confused with completed development.

Still, the direction is significant. Western Canada’s data-centre story is becoming regional rather than limited to a single Alberta project.

British Columbia shows why electricity cannot be taken for granted

Demand for data-centre electricity has become large enough that BC Hydro introduced a competitive electricity allocation process in February 2026. Under the initial two-year framework, the province allocated 300 MW for AI projects and 100 MW for data-centre projects. AI and data-centre projects requiring 10 MW or more must participate in the competitive selection process.

That illustrates an important point. Demand for data centres can exceed the infrastructure available to serve them. Investors shouldn’t assume every announced project automatically translates into construction. Power capacity can become one of the primary limits on development.

Data centres are industrial real estate — but they are not typical warehouses

Data centres are often classified as industrial properties, but their economics can differ significantly from conventional warehouse or flex space.

A warehouse can often serve many different tenants over its life. A hyperscale data centre may include highly specialized power, cooling, connectivity and security infrastructure designed around a particular computing requirement.

Fasken notes that data-centre leases can combine features of traditional real estate contracts with technology and service agreements. Power availability, service levels, network connectivity, scalability and technical performance may all influence the economics of the facility.

This specialization can create opportunities. It can also create risk. Investors should consider:

• construction costs
• tenant concentration
• financing requirements
• rapidly changing technology
• access to electricity
• network connectivity
• water requirements
• development approvals
• cybersecurity
• equipment replacement
• lease terms
• future power requirements

That is another reason InvestPlus Industrial REIT’s strategy should not be confused with direct data-centre development. Conventional multi-tenant industrial real estate operates under a different risk and operating profile. For how that income is actually produced, see what you get from industrial real estate.

Western Canadian industrial real estate has its own demand story

Another mistake would be treating data centres as the only reason to pay attention to Western Canadian industrial properties. They aren’t.

The region already has substantial demand generated by logistics, construction, energy, manufacturing, transportation, trades, agriculture, service companies and other industries. Recent leasing numbers support that broader industrial story.

CBRE reported that Canadian industrial net absorption reached 10.3 million sq. ft. in Q3 2026, the strongest quarterly total since 2022. Calgary alone recorded 3.8 million sq. ft. of net absorption, its second-highest quarterly result on record. Calgary’s availability rate also declined by 170 basis points during the quarter.

Edmonton has also experienced tight industrial conditions. CBRE reported that Edmonton industrial vacancy remained below 3% for seven consecutive quarters through Q2 2026, while overall availability reached its lowest level in more than a decade.

These figures do not prove that data-centre investment caused the industrial demand. They shouldn’t be presented that way. Instead, they show that major AI and infrastructure projects are arriving in a region that already has an active industrial economy. For investors, that distinction matters.

What could AI infrastructure mean for industrial landlords?

The opportunity is easier to understand by looking at the businesses surrounding large infrastructure projects. Imagine a new infrastructure hub that brings dozens of contractors and suppliers into a region. Some companies may already operate nearby. Others may open additional locations. Others may expand.

Over time, demand can appear for:

Small-bay industrial space

Local contractors, technical businesses and service firms often need smaller units combining warehouse, shop and office space. Bay size changes how many businesses can use a building — the same question covered in small-bay versus large-bay industrial.

Flex industrial space

Engineering, technology, maintenance and industrial service companies may require facilities that support multiple uses under one roof.

Warehousing

Equipment, replacement parts, electrical components and construction materials need storage.

Fabrication and service facilities

Mechanical, electrical, steel and energy-related businesses may require shop space rather than traditional distribution warehouses.

Logistics facilities

Large construction and infrastructure developments create physical movement of equipment and materials.

This does not mean every industrial property near a data centre will benefit. Real estate remains local. Building quality, tenant demand, rent levels, location, debt, purchase price and property management still matter.

Why a private industrial REIT can offer a different approach

Investors who want exposure to industrial real estate generally have several options. They can buy property directly. They can invest in publicly traded REITs. They can participate in private real estate funds or private REITs. Each structure has different considerations.

Direct ownership can offer control, but it also brings financing, leasing, property management, capital expenditures and tenant responsibilities. Public REITs provide market liquidity, but their unit prices can move with public equity markets.

A private industrial REIT can provide access to a professionally managed real estate portfolio without requiring each investor to directly acquire or operate individual industrial properties. Private REIT units can also have limited liquidity, and distributions may be reduced or suspended. Investors need to review the applicable offering documents, redemption terms, fees, property portfolio, debt structure and investment risks before making a decision.

InvestPlus Industrial REIT focuses specifically on Western Canada industrial real estate. That means the discussion around AI infrastructure is relevant because it adds another potential source of economic activity within the markets where the REIT operates. It does not replace the broader investment thesis. The current offering and how private REIT ownership works are the documents that describe the structure.

What investors should watch next

The Canadian data-centre market is changing quickly. For investors following the sector, several indicators deserve attention.

1. Projects that move from announcement to construction. Large announced investment figures generate headlines. Actual construction provides stronger evidence. Watch permitting, financing, site work and construction progress.
2. Power commitments. A proposed facility without a credible source of electricity may remain proposed for a long time. Power agreements and grid connections matter.
3. Supporting industrial activity. Watch the companies winning construction, supply, equipment and maintenance contracts. Those businesses may ultimately create conventional industrial space requirements.
4. Infrastructure investment. Transmission, natural gas, roads and other infrastructure can influence where future industrial development occurs.
5. Industrial leasing activity. Industrial absorption, vacancy and rental trends can provide broader evidence of tenant demand.
6. Government policy. Large data centres require substantial resources. Provincial and federal policies around electricity, water, planning and economic benefits can affect which projects advance.

The bigger industrial real estate picture

Artificial intelligence may feel digital. The infrastructure supporting it is anything but.

Servers need buildings. Buildings need land. Computers need electricity. Power systems need equipment. Equipment needs manufacturers, distributors and technicians. Construction requires contractors. Operations require maintenance. All of those activities create physical requirements.

That is why the Canadian data-centre story should matter to investors studying Western Canada industrial real estate. The opportunity isn’t limited to owning the data centre itself. In many cases, the more practical real estate story may sit outside the campus — among the industrial businesses supporting years of construction, power development, maintenance and operations.

For InvestPlus Industrial REIT, this fits within a broader approach to industrial real estate: owning properties used by businesses operating in the real economy across Western Canada.

Learn more about the Alberta data-centre industrial thesis

InvestPlus Industrial REIT has prepared a dedicated research report examining Meta’s Sturgeon County project and the industrial ecosystem developing around Alberta’s AI infrastructure push. The report examines:

• Meta’s Alberta investment
• the role of power generation
• Alberta’s natural-gas infrastructure
• supporting contractors and suppliers
• conventional industrial demand
• how InvestPlus Industrial REIT thinks about the businesses operating around these major projects

Frequently asked questions

Are data centres considered industrial real estate in Canada?

Data centres are generally considered specialized industrial or digital infrastructure assets. They differ from conventional warehouses because of their significant electricity, cooling, security, connectivity and technical requirements.

Why are data centres expanding in Western Canada?

Power availability, land, energy resources, climate, government policy and growing demand for Canadian computing capacity are attracting projects to Western Canada. Alberta and Saskatchewan have recently announced or begun construction on major AI infrastructure projects.

Why is Alberta attracting data-centre investment?

Alberta has identified AI data centres as a strategic economic opportunity. The province cites power capacity, cooling conditions, energy resources and economic development as major components of its strategy. Meta’s 1 GW Sturgeon County project is one of the most significant examples currently under construction.

How can data centres affect conventional industrial real estate?

Large data-centre projects require construction companies, equipment suppliers, electrical contractors, mechanical firms, logistics providers, fabricators and maintenance businesses. Some of these companies may require warehouses, shops, flex space and other conventional industrial properties near the projects they support.

Does InvestPlus Industrial REIT own data centres?

InvestPlus Industrial REIT’s data-centre research focuses on the conventional industrial businesses and real estate demand surrounding major infrastructure developments. It should not be interpreted as a statement that InvestPlus Industrial REIT owns or operates data centres.

Is investing in industrial real estate risk-free?

No. Real estate investing involves risk. Property values, occupancy, financing costs, tenant performance, economic conditions and other factors can affect results. Private REIT units may have limited liquidity and distributions may be reduced or suspended.

How can I learn about InvestPlus Industrial REIT?

Start by reviewing the InvestPlus Industrial REIT investor materials and research library. Investors who want to discuss the portfolio, current offering and investment structure can then book a discovery call with Investor Relations.