Telus launching Canadian AI data centers in Rimouski

Telus Corp. will launch AI data centres in Canada, entering a market mostly controlled by U.S. companies like Microsoft and Google. The company plans to use a facility it owns in Rimouski, Quebec, adding up to 500 graphics processing units (GPUs) from Nvidia, a key supplier for AI technology. While Telus's startup is modest compared to the scale of its U.S. competitors, the move aims to serve Canadian businesses needing access to AI capabilities. The current infrastructure market is complicated and expensive, with many companies relying on U.S. firms for cloud services. Hesham Fahmy, Telus's chief information officer, stated the company's goal is to acquire tens of thousands of GPUs over time, based on customer demand. He emphasized that they are ready to scale up quickly. The Canadian government is encouraging the development of AI infrastructure, offering financial support to boost local investments. The Rimouski data centre is set to open this summer and will focus on providing Canadian companies with secure, sovereign access to AI technology. Telus also plans expansion at a facility in Kamloops, British Columbia. This approach responds to growing concerns about data security for sensitive sectors like healthcare and finance. Telus is participating in Nvidia's cloud computing partner program, which positions it uniquely among Canadian telecoms. Competitors BCE and Rogers have moved away from owning data centres, focusing instead on selling off their facilities to reduce debt. Despite challenges in the data centre business, demand is surging. In 2023, investment in data centres reached $215 billion, driven primarily by AI applications and the potential for increased productivity across industries.