When we talk about artificial intelligence (AI), the first names that pop up are Meta, Amazon, and Google. They are the hyperscalers pouring billions into AI. A report by Goldman Sachs Research estimates AI-related investment worldwide to touch $1 trillion in 2026, including $581 billion in the US. It expects AI capital spending as a percentage of U.S. gross domestic product (GDP) to increase from 1.8% in 2026 to 2.8% in 2028. These AI infrastructure builders are contributing to the country’s GDP.
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Why do AI infrastructure builders matter?
AI investment is initiated by hyperscalers and network infrastructure companies. AI is a five-layer stack, as Nvidia puts it. The base layer is energy, followed by chips, infrastructure, models, and applications. Each layer presents ample growth opportunity for investors and brings the world one step closer to AI adoption.
Bell Canada AI fabric
In Canada, BCE (TSX: BCE) is building Bell AI fabric as part of sovereign AI. While Canada doesn’t have a hyperscaler, it has a vast fibre network infrastructure. Bell is building a full-stack AI on top of its fibre network. The fabric will include data centre infrastructure, software, cloud capabilities, professional services, and a partner ecosystem.
The first big loop of the Bell AI fabric is its $1.7 billion, 300-megawatt AI data centre in Sherwood, Saskatchewan. It expects the data center to generate $500 million in annual revenue and $400 million in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) on a run-rate basis by the end of 2027. Bell expects this revenue to grow 2.5% to 4.5% and EBITDA to grow 3% to 4% through 2028.
To build this infrastructure, BCE has partnered with:
- Bird Construction (TSX: BDT) to construct the data centre building.
- Celestica (TSX: CLS) for hardware solutions, such as Ethernet switches, storage, rack integration, thermal management and power infrastructure.
- Hive Digital Technologies (TSX: HIVE) to build an AI factory from Nvidia’s graphics processing units (GPUs).
Three Canadian firms participating in AI infrastructure development
Hive Digital Technologies
Among the three partners of Bell AI fabric, two are raising equity financing to support expansion. Hive has been raising money from a private offering of 0% Exchangeable senior notes. Hive plans to use the proceeds to buy Nvidia GPUs and develop data centres. It has announced various other partnerships to grow revenue from its BUZZ Platform.
It aims to build AI giga factories for hyperscalers. So far, it has partnered with universities and technology companies. Even one deal with a hyperscaler like Amazon or Google can send Hive’s stock skyrocketing, despite the equity dilution from exchangeable senior notes.
Celestica
Celestica is also looking to raise US$3 billion through an equity offering to support working capital and capital investment in design and manufacturing capacity. The original design manufacturer (ODM) is seeing multi-year demand from its customer base, which comprises three hyperscalers, one being Google.
While the equity offering pulled Celestica stock down over equity dilution, the long-term growth prospects look bright. The company moved from third-party manufacturing to ODM for Ethernet switches and storage. It could use the proceeds to build more hardware content for AI data centres.
The 20% correction in Celestica’s share price is an opportunity to buy and book your spot in the future growth rally.
Bird Construction
Bird Construction is benefiting from Canada’s Nation Building initiatives, which have accelerated construction of infrastructure, buildings, and industrial projects. It has an order book of $11 billion, with a favourable mix of higher-margin products. Some of the large capital investment projects include Woodfibre LNG, a nuclear plant, and Bell’s AI fabric.
The BCE AI data centre is just the first project in the BCE-Bird partnership. More such projects could be announced and executed. Bird Construction stock has corrected 15% in July. Now is a good time to buy the stock as it has a strong balance sheet, order backlog, and recurring revenue projects that fund its monthly dividends.
Bird Construction is on track to achieve its targeted 8% adjusted EBITDA margin in 2027, from 6.5% in 2025. It sees growth spurts, with seasonal strength in winter due to the nature of its work program for mining clients and the start of new industrial projects.
