BCE (BCE) Status update summary

Strategic rationale and project overview

• Announced a 300 MW AI data center in Saskatchewan, the largest investment in the province and Canada, fully aligned with long-term growth and strategic priorities.

• Facility will prioritize sovereign AI compute for Canadian agencies, researchers, and enterprises, ensuring data residency and security.

• Investment is phased, contracted, and return-driven, with strong partnerships including the Saskatchewan government, SaskTel, and SaskPower.

• Bell provides real estate, cooling, and connectivity, with no investment in compute hardware, reducing technology and obsolescence risk.

• 800 MW of power now has line of sight for monetization, including this project and previous commitments.

Financial impact and guidance update

• Total CapEx for the project is approximately CAD 1.7 billion, with CAD 1.3 billion expected in 2026, offset by CAD 400 million in setup fees and prepayments.

• At full run rate, the center is expected to generate CAD 500 million in revenue, CAD 400 million in EBITDA, and over CAD 250 million in free cash flow.

• Project delivers an IRR of about 20% at the data center level, is leverage-neutral, and supports accelerated deleveraging.

• 2028 AI-powered solutions revenue objective raised from CAD 1.5 billion to CAD 2 billion.

• 2026 revenue growth guidance is 1%-5%, adjusted EBITDA growth 0%-4%, and capital intensity below 15%, with 2025–2028 revenue CAGR revised to 2%-4.5%.

Risk management and contract structure

• 100% of capacity is fully contracted under long-term, non-cancellable agreements with Cerebras and CoreWeave, providing infrastructure-like cash flows.

• Construction risk mitigated through phased deployment, modular design, early procurement, and experienced partners.

• Contracts include revenue visibility, inflation protection, credit protection, and pass-through of power costs.

• No direct exposure to AI pricing, utilization, or technology obsolescence; Bell does not own compute hardware.

• Long initial contract terms with renewal options and focus on sovereign workloads for durable demand.