The Canadian Companies Building AI Infrastructure and Why They Matter

Canadian companies building AI infrastructure are powering the nation’s digital future. Here’s why Hydro One, Emera, and Brookfield Infrastructure matter.

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Key Points
  • Canadian companies are building AI infrastructure with a focus on research labs and algorithms, providing significant investment opportunities for investors.
  • Key players like Hydro One, Emera, and Brookfield Infrastructure are strengthening energy and digital networks to support AI growth, offering appealing investment prospects.
  • These companies provide clean and scalable power crucial for AI-driven industries, positioning Canada for long-term competitiveness in AI.

It seems lately that everyone is trying to get into the AI game. For Canadians, those AI ambitions rest more on building research labs and algorithms. Canadian companies are building AI infrastructure that keeps the backbone of power, transmission, and infrastructure running.

For investors, there’s an opportunity to be realized from those Canadian companies building AI infrastructure right now.

Part of the reason for that is that AI systems consume enormous amounts of electricity, bandwidth, and compute resources. Training the large models that users have grown accustomed to requires stable power, and deploying them at scale demands substantial power on the grid.

For Canada, this creates both a challenge and an opportunity. The country’s ability to attract AI investment increasingly depends on whether the infrastructure can support data centres, compute clusters, and energy‑intensive operations.

Canadian companies building AI infrastructure look to regions with dependable power, long‑term capacity, and room for expansion. This provides a unique advantage to Canada and, by extension, investors.

Here’s a look at three stocks ready to capitalize on that opportunity.

Abstract technology background image with standing businessman

Source: Getty Images

Hydro One: Strengthening the backbone of Ontario’s grid

Hydro One (TSX: H) plays a critical role in Ontario’s electricity system. The company operates an overwhelming share of the province’s transmission network, serving millions of customers.

As AI workloads grow, maintaining the strength of that grid becomes even more important. Data centres and AI‑heavy industries require consistent, high‑quality power, and Hydro One’s ongoing investments support that need.

Hydro One is actively upgrading its transmission lines, modernizing substations with the goal of improving system reliability. These enhancements help reduce outages and increase the grid’s ability to handle the higher loads that AI demands.

Prospective investors looking to capitalize on that growth opportunity should also note that Hydro One offers a quarterly dividend that carries a yield of 2.5%. This makes the stock appealing as both one of the Canadian companies building AI infrastructure and a long-term dividend pick.

Emera: Expanding clean energy capacity for AI growth

Emera (TSX: EMA) is one of Canada’s big utility stocks. The company boasts operations in the U.S., across Atlantic Canada and the Caribbean that position the utility as a key player in the transition to cleaner, more resilient energy systems.

As AI adoption accelerates, the demand for sustainable power sources grows. Canadian companies building AI infrastructure now prioritize regions with access to clean energy, both for cost stability and environmental concerns.

Emera’s investments in renewable generation, grid modernization, and regional interconnections support that shift. By expanding clean energy capacity and improving the efficiency of its networks, Emera is creating an environment where AI‑driven industries can grow responsibly. For data centres and digital operations, access to cleaner power is increasingly a deciding factor in where they choose to build.

Adding to that appeal are two other reasons investors should consider Emera.

First, there is the regulated appeal of utility stocks. Emera generates recurring, stable revenue that’s backed by long-term regulated contracts. This makes the stock a defensive long-term holding to consider.

Adding to that defensive appeal is Emera’s long-standing record of paying dividends. The company pays a quarterly dividend with a yield of 4.1% and has delivered annual increases for over a decade.

Brookfield Infrastructure: Powering global‑scale digital assets

One final pick for Canadian companies building AI infrastructure to consider is Brookfield Infrastructure (TSX: BIPC). Brookfield operates a global portfolio that includes data centres, energy assets, and digital infrastructure.

That footprint gives Brookfield a unique role in AI expansion. As demand for compute capacity rises worldwide, Brookfield’s investments in data centres and digital networks help meet the needs of companies deploying AI at scale.

Brookfield also offers a massive portfolio of diversified assets. That includes everything from energy transmission to digital connectivity. Brookfield’s data centre operations, in particular, align directly with infrastructure requirements around AI training and deployment.

By expanding these capabilities, Brookfield contributes to the broader ecosystem that enables Canadian companies building AI infrastructure to prosper.

Why these Canadian companies building AI infrastructure matters

Each of the three stocks mentioned above play a different but related role in Canada’s AI landscape. Together, they expand access to clean and scalable power and support the digital infrastructure needed for AI‑driven industries.

As AI adoption accelerates, these Canadian companies building AI infrastructure will remain central to the country’s long‑term competitiveness.

In my opinion, a small position in one or all of these stocks should be part of any well-diversified portfolio.

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.

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