Canada Pension Plan Investment Board Backs Major Data Centre Expansion in Cambridge
The Canada Pension Plan Investment Board (CPPIB) is injecting $225 million into a construction loan aimed at expanding a data centre in Cambridge, Ontario. This facility counts Canadian AI company Cohere Inc. as a key customer.
The upgrade will boost the data centre's capacity from about 6 megawatts to 54 megawatts of hyperscale power. This increase supports the heavy computational demands of training sophisticated AI models and can supply electricity sufficient for tens of thousands of homes.
Investment Details and Partnership Structure
CPPIB's $225 million represents a 50% stake in a $450 million construction loan. The other half comes from Deutsche Bank AG’s private credit and infrastructure division. The expansion is a joint venture involving U.S.-based developers Related Digital and Ascent, alongside TowerBrook Capital Partners, which operates out of New York and London.
CoreWeave Inc., a U.S. company, will operate the expanded facility, with Cohere as a customer. The site has an interesting history—it was originally a food distribution centre converted into a data centre by BlackBerry Ltd. over a decade ago. The first phase of expansion is launching now, with two more phases scheduled to finish by summer 2026.
Strategic Significance for Canadian Infrastructure Investment
Geoffrey Souter, CPPIB’s head of real assets credit, emphasized the significance of investing at scale within Canada. The data centre’s expansion is seen as a key milestone that signals growing opportunities in digital infrastructure, both domestically and globally.
Demand for data centres is surging, attracting large pension funds and institutional investors. While Canada's data centre market is currently fragmented with limited inventory, factors like growing data sovereignty demands, a skilled workforce, and strong fibre networks create a solid foundation for growth.
CPPIB’s Broader Digital Infrastructure Portfolio
- CPPIB manages $714 billion for the Canada Pension Plan’s 22 million members.
- Credit accounts for 11% of the fund, with approximately $15 billion allocated to bespoke loans in real estate, infrastructure, and sustainable energy.
- In the past year, CPPIB invested nearly $1 billion into Canadian digital infrastructure, including participation in a consortium led by Blackstone Inc. that acquired a $7 billion minority stake in Rogers Communications Inc.’s wireless assets.
- It holds data centre investments and joint ventures across Canada, the U.S., South America, Australia, and Europe.
- Last fall, CPPIB partnered with Equinix Inc. to raise US$15 billion for land acquisition and new facility construction in the U.S.
Additionally, Montreal-based eStruxture Data Centers recently raised $750 million through a novel securitization, boosting its borrowing capacity to $1.35 billion.
Government Support and Future Outlook
The federal government has prioritized AI infrastructure development, pledging $2 billion last year to support the industry. In December, Ottawa announced plans to allocate $15 billion to attract pension fund investments aimed at building AI-focused data centres in Canada.
Looking forward, CPPIB expects demand for computing power to grow strongly over the next five years, driven largely by AI's computational needs. Geoffrey Souter noted that private capital interest remains high regardless of government incentives.
For professionals in real estate and construction, this expansion signals significant opportunities in the digital infrastructure sector, especially within data centre development and financing.
To explore relevant AI courses that complement careers impacted by such infrastructure growth, visit Complete AI Training’s job-focused courses.
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