Canada’s artificial intelligence (AI) race keeps moving from theory to concrete. Ottawa has talked up sovereign AI, and provinces want power-hungry projects. Most recently, Canada unveiled a roughly $1 trillion plan to double grid capacity by 2050, with AI data centres among the drivers. That kind of buildout needs electricity, land, cooling, workers, and safety systems. So, where should investors look?
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BLN
Blackline Safety (TSX: BLN) could benefit from that last piece. Blackline sells connected safety devices and software used by industrial workers, including lone-worker monitoring and gas detection. So, the thesis needs care. Blackline won’t automatically make a fortune just because Canada builds more data centres. But if the country starts building complex industrial sites, it could see a larger pool of customers that need worker safety technology.
The Calgary company has built a global business around connected gas detection and workplace safety. Its devices help companies monitor workers in real time, detect dangerous gases, and respond faster when something goes wrong. That fits industries where people work around utilities, construction, energy, chemicals, and remote sites.
Data centres may sound clean and digital, yet the buildout behind them looks industrial. These projects need grid upgrades, backup power, fuel systems, electrical work, cooling infrastructure, construction crews, and ongoing facility maintenance. Any larger wave of energy and infrastructure spending can create more demand for safety systems. Blackline sits close enough to that trend to deserve attention.
Into earnings
Its latest results help the story. In the first quarter of fiscal 2026, Blackline reported record first-quarter revenue of $38.8 million. Annual recurring revenue reached $90.5 million, up 28% from a year earlier. That recurring piece shows Blackline keeps earning service revenue as customers stay connected to its platform.
The AI stock also reported record first-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.7 million. That marked its seventh straight quarter of positive adjusted EBITDA. For a smaller technology company, investors want to see growth without endless cash burn. Blackline still needs to prove it can turn scale into stronger profits, but the trend looks better than it did a few years ago.
The real catalyst comes from operating leverage. Blackline has products, service revenue, and a growing customer base. If industrial activity rises, new customers can add devices and subscriptions. Existing customers can add more sites or workers. That can lift revenue without forcing the company to reinvent itself.
Looking ahead
The timing also helps. Canada’s data-centre push doesn’t stop at buildings. It touches utilities, pipelines, backup power, electrical networks, and industrial construction. Blackline can sell into many of those environments, which gives the AI stock more than one path to growth.
Valuation still needs caution. Blackline’s stock has already gained attention, with shares up 17% in the last year, and smaller growth stocks can swing hard when quarterly results miss expectations. The AI stock also faces competition from traditional safety equipment makers and other connected-device platforms. Plus, data centre demand may benefit electrical contractors, utilities, and power producers more directly than Blackline.
That’s the main risk in this story. Investors shouldn’t treat Blackline as a pure data centre stock. It’s an industrial safety technology company with possible exposure to the broader infrastructure wave. That makes the opportunity interesting, but not guaranteed.
Bottom line
Even so, Blackline offers something different on the TSX. It combines hardware, software, recurring revenue, and a practical safety need. If Canada’s data centre ambitions lead to years of construction, grid expansion, and industrial upgrades, demand for connected worker safety could keep growing.
So, could Blackline make a fortune from Canada’s data-centre buildout? Maybe not from data centres alone, but from the larger industrial push around power, infrastructure, and safety, it has a credible shot at surprising investors. For those willing to accept small-cap volatility, BLN could be one Canadian growth stock worth watching before the buildout gets even bigger.
