The numbers
BCE Inc. is making headlines as Bell Canada plans to construct Canada’s largest AI data centre in Sherwood, Saskatchewan. The facility is projected to have a capacity of 300 MW and is expected to generate approximately $12 billion in revenue for the province’s economy.
The construction of the data centre will create 800 temporary jobs during the building phase and provide 80 full-time jobs once it becomes operational. This ambitious project is slated to be fully functional by the end of 2027.
Mirko Bibic, CEO of Bell Canada, emphasized the importance of power availability in delivering the necessary compute capacity, stating, “You need the power in order to deliver that compute capacity and what we have is a province that is willing to make the power available to generate that compute capacity.” This initiative marks a significant step forward in the province’s technology sector.
Premier Scott Moe described the project as a “historic investment” that will foster job creation and partnerships within the community. The data centre will be constructed in phases and will incorporate partnerships with AI companies, ensuring that it utilizes a water-smart and energy-efficient design.
In terms of BCE’s financial health, the company currently boasts a dividend yield of 4.88%. Following a dividend cut in 2025, BCE’s payout ratio dropped from 125% to approximately 64% of free cash flow. This adjustment reflects a more sustainable approach to managing dividends, although concerns linger about the company’s long-term prospects.
BCE has reported a levered free cash flow of around $3.3 billion after servicing its debt, which stands at $41.1 billion. The company has also seen significant growth in its AI-driven solutions, with a reported 31% increase in revenue in recent quarters.
While BCE’s dividend appears secure for now, analysts caution that the same structural pressures that led to the previous dividend issues may resurface. As one analyst noted, “The current dividend yield of about 4.9% is sustainable today, but the same structural pressures that caused the earlier dividend problem may eventually reappear.”
Details remain unconfirmed regarding the long-term growth outlook for BCE and the potential impact of the new AI data centre on local resources and community concerns. Observers will be closely monitoring these developments as they unfold.
