TELUS and Government of Canada advance work to scale Canada's sovereign AI infrastructure

With Canada's first Sovereign AI Factory in Rimouski, Quebec, now sold out, TELUS is expanding its sovereign AI infrastructure with three world-class facilities in B.C.

Designed to be the world's most sustainable sovereign data centres, the cluster will scale to over 60,000 GPUs and 150 MW by 2032

VANCOUVER, BC, May 11, 2026 /CNW/ - TELUS is advancing work with the Government of Canada on a proposed Sovereign AI Factory cluster under the federal Enabling Large-Scale Sovereign AI Data Centres initiative – a program designed to build the sovereign, high-performance AI compute infrastructure Canada needs to compete in the global AI economy. TELUS, Westbank and the Government of Canada are working together on the details of this collaboration, as TELUS scales its Sovereign AI Factory network across three world-class facilities in British Columbia, delivering one of the world's most powerful and sustainable AI infrastructure clusters – built on Canadian soil.

"We are incredibly proud to be working with the Government of Canada to help build Canada's sovereign AI infrastructure," said Darren Entwistle, President and CEO of TELUS. "The unprecedented demand that completely sold out our first AI Factory in Rimouski proves that Canadian innovators want cutting-edge AI built right here on Canadian soil. Following this modular, demand-driven approach, we are developing our B.C. sovereign AI cluster as a direct response to that market demand. This will serve a rapidly growing ecosystem of Canadian businesses, entrepreneurs, startups, researchers, public institutions and government organizations that require world-class AI compute without sending their data, intellectual property and competitive advantage outside Canadian borders.By scaling our infrastructure to more than 60,000 high-performance GPUs, we are doing more than just building technology; we are injecting $9 billion into the Canadian economy and safeguarding our nation's most sensitive data. Furthermore, we are running these facilities on 98% clean energy and utilizing our groundbreaking liquid cooling and heat recovery technology. By recycling waste heat back into the grid, these facilities will heat more than 150,000 homes in metro Vancouver, lowering energy costs for British Columbians and eliminating the overall carbon footprint. Indeed, we are sending a clear message to the world: Canada will lead the AI revolution with uncompromising technological power and unparalleled climate leadership."

TELUS' first Sovereign AI Factory in Rimouski, Quebec, opened in September 2025 and is recognized as Canada's fastest and most powerful supercomputer on the prestigious global TOP500 list, is fully sold out.

"Securing Canada's technological independence is a national priority, and it requires building the infrastructure to back it up," said The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation. "By working with TELUS, we are taking concrete action to strengthen Canada's sovereign AI capacity and ensure that Canadian innovation, data, and economic advantages are anchored in Canada. This is how Canada competes in the AI-driven economy."

Leveraging an initial 85 megawatts (MW) of clean, renewable power secured from BC Hydro, TELUS is expanding its existing Kamloops data centre and developing two new Vancouver facilities with Westbank and its partners. The Kamloops AI Factory will come online later this year; the M3 facility in Vancouver's Mount Pleasant neighbourhood will open at the end of 2026 and scale through 2028; and the 150 West Georgia facility will come online in 2029, with the cluster's total capacity scaling to over 150 MW by 2032.

At full scale, the three-site cluster will house AI infrastructure featuring high-performance NVIDIA GPUs to support large-scale AI model training, complex simulations and production-scale deployment. As the first North American service provider to become an official NVIDIA Cloud Partner, TELUS will leverage NVIDIA's most advanced accelerated computing technology – including NVIDIA Vera Rubin and NVIDIA Grace Blackwell platforms connected with NVIDIA Quantum InfiniBand and NVIDIA Spectrum-X Ethernet networking, powered by NVIDIA AI Enterprise software – ensuring Canadian organizations can build and deploy AI on the same cutting-edge infrastructure powering the world's most advanced AI systems.

Designed to be some of the world's most sustainable sovereign AI data centres, the Vancouver facilities will set a new global standard for sustainable AI infrastructure. Powered by 98% renewable energy, the facilities are designed to integrate into the City of Vancouver's Neighbourhood Energy Utility in Mount Pleasant and Creative Energy's downtown district energy system, supporting the decarbonization of over 50M sq ft of real estate. A closed-loop liquid cooling system will reduce cooling energy consumption by 80% compared to traditional data centres, while recycling electricity as carbon-free thermal energy to heat the equivalent of 150,000 homes. Water consumption will be 90% lower than traditional data centres, with plans to incorporate recycled water from BC Place.

"TELUS has proven over the past year that sovereign AI infrastructure built on trusted telecom platforms delivers real results; in fact, AI-native companies are already training, deploying, and scaling on TELUS' NVIDIA-powered platform," said Ronnie Vasishta, Senior Vice President, Telecom, at NVIDIA. "This next phase of growth validates how trusted telcos like TELUS become the infrastructure layer of a nation's economic future."

"People toss around the word innovation lightly, but this is a story of true Canadian innovation," said Ian Gillespie, Founder and CEO, Westbank. "We first became involved in district energy after our success developing a low carbon utility TELUS Garden. After years of R&D, working with our partners at TELUS, BC Hydro, Creative Energy, the City of Vancouver, Province of BC and now the Federal Government, we have arrived at the most elegant low-carbon solution – effectively using every electron twice, to produce environmentally responsible Sovereign AI infrastructure. This, as our Prime Minister would say, is using our values to create value."

Once fully scaled, this powerful cluster is expected to deliver approximately $9 billion in economic value to British Columbia, create more than 1,000 construction jobs and hundreds of high-skilled operations roles – cementing B.C. as a Canadian hub for sovereign AI innovation and a destination for technology investment, talent and research. This project represents TELUS' commitment to the province of B.C. and positions Vancouver as a strategic digital gateway to Asia-Pacific markets through direct, low-latency connectivity.

"Through our Look West strategy, B.C. is ensuring our clean electricity is directed where it delivers the most value for British Columbians," said Ravi Kahlon, Minister of Jobs and Economic Growth. "By prioritizing projects by B.C.'s many innovative companies who are using AI to solve challenges, focusing on data sovereignty, and working in alignment with our federal partners, we're ensuring our clean power supports good-paying jobs and prosperity across the province."

"Vancouver is one of North America's great technology hubs," said Mayor Ken Sim, Vancouver. "It's important that we are building the infrastructure to support our City and our country's technology goals. As AI rapidly moves from research into real-world deployment, the next generation of AI applications will demand ultra-low latency that only urban infrastructure can deliver. These world-class facilities in the heart of Vancouver will attract high-value investment, create skilled jobs, and ensure our city's businesses are first in line for the most advanced AI capabilities available."

Reflecting TELUS' commitment to the ethical and responsible use of AI, TELUS is the first telco to sign the Canadian Voluntary code of conduct for AI, was the first in the world to be Certified as ISO Privacy by Design, and the first Canadian company to commit to the Hiroshima AI Process reporting framework. As a result of the company's efforts to integrate responsible practices into its AI systems, foster trust and benefit society, TELUS was recognized by the Responsible AI Institute for its global leadership in responsible AI.

TELUS' Sovereign AI Factory supports the full AI development lifecycle — from model training and fine-tuning to real-world deployment to inference at large scale within a single platform — all on infrastructure owned, operated, and governed entirely within Canada. To learn more, visit telus.com/AIFactory.

About TELUS

TELUS (TSX:T, NYSE:TU) is a world-leading communications technology company operating in more than 45 countries and generating over $20 billion in annual revenue with more than 21 million customer connections through our advanced suite of broadband services for consumers, businesses and the public sector. We are committed to leveraging our technology to enable remarkable human outcomes. TELUS is passionate about putting our customers and communities first, leading the way globally in client service excellence and social capitalism. TELUS Health is enhancing approximately 170 million lives across 200 countries and territories through innovative preventive medicine and well-being technologies. TELUS Agriculture & Consumer Goods utilizes digital technologies and data insights to optimize the connection between producers and consumers. TELUS Digital specializes in digital customer experiences and future-focused digital transformations that deliver value for their global clients. Guided by our enduring 'give where we live' philosophy, TELUS continues to invest in initiatives that support education, health and community well-being. In 2023, we launched the TELUS Student Bursary, which strives to ensure that every young person in Canada who wants a postsecondary education has the opportunity to pursue one. To date, the program has distributed over $6 million in bursaries to 2,000 students and counting. Since 2000, TELUS, our team members and retirees have contributed $1.85 billion in cash, in-kind contributions, time and programs, including 2.5 million days of service—earning TELUS the distinction of the world's most giving company.

For more information, visit telus.com or follow @Darren_Entwistle on Instagram.

For more information, please contact:

NATIONAL Public Relations

Rachel Campbell

rcampbell-f@national.ca

Meagan Conn

mconn@national.ca

Forward Looking Statements

This news release contains statements about future events and plans that are forward-looking, including statements relating to TELUS' plans to invest in and expand its sovereign AI infrastructure now through 2032. These forward-looking statements are made based on a number of assumptions, including assumptions about future economic conditions and courses of action. Readers are cautioned not to place undue reliance on them as there is significant risk that actual results may vary materially from these forward-looking statements, including as a result of risks relating to regulatory decisions and developments, the competitive environment in which we operate, and our operating and financial results.

The forward-looking statements in this news release are subject to the cautionary note and based on the assumptions, qualifications and risks described in detail in TELUS' 2025 annual Management's discussion and analysis (MD&A) and first quarter 2025 MD&A, which are incorporated by reference herein, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR+ at sedarplus.ca) and in the United States (on EDGAR at sec.gov). Forward-looking statements describe TELUS' expectations and are based on our assumptions as at the date of this press release and are subject to change. These statements are made pursuant to the "safe harbour" provisions of applicable securities laws in Canada and the United States Private Securities Litigation Reform Act of 1995. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements.

SOURCE TELUS Communications Inc.

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