2 Canadian Stocks Built for the Data Centre Boom

Canada’s data centre boom isn’t just about chips. Telus and Granite offer TSX exposure to the digital networks and physical logistics behind AI growth.

Key Points
  • Telus could benefit from Canada’s push for sovereign AI data centres, while its telecom cash flow funds the buildout.
  • Granite REIT can ride demand for warehouses and logistics space that supports data-centre construction and equipment supply chains.
  • Both pay income while you wait, but Telus faces debt and competition, and Granite is sensitive to interest rates.

Data centres used to sound like someone else’s problem. Now, they look like one of Canada’s biggest investment themes. Artificial intelligence (AI) needs enormous computing power. Cloud services need more storage. Businesses need faster networks, safer data, and better logistics around the equipment feeding this buildout. Investors can chase chip stocks, of course. But Canadian investors have other ways to play the trend without leaving the TSX.

TELUS (TSX: T) and Granite REIT (TSX: GRT.UN) offer two very different angles. Telus gives investors exposure to networks, cloud infrastructure, and sovereign AI data centres. Granite offers industrial real estate that supports the warehouses, logistics hubs, and distribution space needed around a larger digital economy. Neither stock gives investors a perfect pure play, but could actually make both more useful for long-term buyers.

Data center servers IT workers

Source: Getty Images

T

Canada wants more homegrown AI infrastructure. In May, the federal government said it was advancing work with Telus on sovereign AI infrastructure after a call for large-scale data centre proposals. Telus says the planned cluster could scale to more than 60,000 GPUs and 150 megawatts by 2032. That gives the company a direct role in the next phase of Canadian AI spending.

The business snapshot remains simple. Telus sells wireless, internet, TV, security, health technology, and digital services. Those mature telecom operations generate the cash needed to fund newer growth areas. In the first quarter of 2026, Telus reported cash from operations of $1.05 billion and free cash flow of $583 million, up 19% from last year, and data centres and networks cost real money before they produce meaningful returns.

The catalyst comes from demand for Canadian-controlled AI infrastructure. Governments, hospitals, banks, and enterprises care about where sensitive data lives. Telus can pitch secure, domestic infrastructure alongside its existing customer relationships. It also has a large dividend, which gives investors income while the AI strategy develops.

Still, investors should not ignore the risks. Telus carries debt, faces tough competition, and needs to keep capital spending under control. Telecom stocks also move slowly compared with splashier AI names. So, this stock may not take off overnight, but if Canada keeps pushing sovereign AI, Telus could become more important than many investors realize.

GRT

Granite REIT plays the boom from the physical side. Data centres don’t appear out of thin air. They need servers, cooling equipment, electrical gear, backup systems, spare parts, and construction materials. All of that needs supply chains. Granite owns and manages logistics, warehouse, and industrial properties across North America and Europe, which gives it exposure to the real estate backbone behind modern commerce.

The latest results showed the kind of stability real estate investment trust (REIT) investors want. In the first quarter of 2026, Granite reported adjusted funds from operations (AFFO) of $1.52 per unit and an AFFO payout ratio of 63%. The trust also reported strong same-property net operating income growth and continued leasing momentum. That tells investors the business still has demand even in a higher-rate world.

The catalyst here is space. As data centre construction grows, nearby logistics assets become more valuable. Companies need locations to store equipment, move inventory, and support technicians. Granite’s properties are not all data centre sites, and investors should not pretend they are. But industrial real estate can benefit from the same buildout cycle.

Granite also pays a monthly distribution, which can appeal to investors who want income while waiting for growth. The risk comes from interest rates, development costs, and tenant demand. REITs can struggle when borrowing costs stay high. Granite also needs disciplined acquisitions to keep per-unit growth moving.

Bottom line

Together, Telus and Granite give investors a broader way to think about data centres. Telus supplies digital infrastructure. Granite supplies real-world infrastructure. And together, both can bring in strong income even with $7,000 before data centres really take off.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
T$16.49424$1.67$708.08Quarterly$6,991.76
GRT.UN$93.5774$3.55$262.70Monthly$6,924.18

The boom still has risks, but Canada needs both pieces if it wants to build the next generation of technology at home over the coming years.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust and TELUS. The Motley Fool has a disclosure policy.

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