National strategy will fund substantial AI investment

Originally published in the Telegraph-Journal.

What that means for businesses and local governments in Atlantic Canada

The federal government’s new artificial intelligence (AI) strategy, AI for All, leaves no question Canada is serious about adopting and investing in AI. If approached thoughtfully, AI has the potential not only to transform industries but also to create lasting prosperity for communities across Atlantic Canada. 

Prime Minister Mark Carney announced $2.3 billion in new and existing programs to accelerate AI adoption by small and medium-sized businesses, encourage public and private investment in AI firms, build and strengthen sovereign AI capability, and increase AI literacy for all Canadians.

Carney said AI can shorten emergency room wait times and make businesses more competitive, “if it is governed by Canadian values with a clear goal of improving the lives of all Canadians.”

The strategy is broad and far-reaching and has a range of opportunities and implications for businesses and local governments in Atlantic Canada.

What it means for businesses

The federal government is ready to invest.

They will consider taking equity stakes in the most promising Canadian AI firms through the new $500-million Canadian Tech Growth Fund, which will provide flexible growth capital and investment support. The federal government will also become a strategic anchor customer and leverage the Buy Canadian policy.

While only 12 per cent of Canadian businesses are using AI today, this strategy aims to increase that to 60 per cent by 2034. To accelerate AI adoption, small and medium-sized businesses will now have access to BDC’s $500-million LIFT program and an additional $500 million investment to expand and enhance the Regional Artificial Intelligence Initiative, which is delivered by regional economic development agencies such as the Atlantic Canada Opportunities Agency.

Small and medium-sized businesses will now be able to assess their AI readiness and identify use cases and business impacts using a new AI Literacy and Adoption Assessment tool. Targeted support will also be available through the Small Business and Entrepreneurship Development Program, and $700 million in “affordable sovereign compute” will be available through the expansion of the Compute Access Fund.

There is an immediate opportunity for companies in the health-care sector with the announcement of $200 million to improve health outcomes for Canadians, the first priority under the new AI Missions Program.

The economic impact of these investments will be substantial, with 250,000 new AI-related jobs projected to be created by 2031, with an additional 90,000 AI-related jobs created for youth.

What it means for local governments

For Atlantic Canada, the choice is not whether AI will arrive – it already has. The question is whether the region will help shape this new economy or watch investment flow elsewhere.

If governments, businesses, and educational institutions work together to strengthen infrastructure, expand the talent pipeline, and create a stable investment climate, Atlantic Canada has an opportunity to become more than a consumer of AI technologies. It can become a producer of the infrastructure and innovation that powers them.

The federal government will support construction of large-scale AI data centres that can scale to “at least 100 megawatts.” While there are now only five such hyperscale data centres in Canada, another 96 are in development.

Globally, AI-related data centres could require an estimated $5 trillion in investment, while broader digital infrastructure needs may exceed $7 trillion.

Here in Atlantic Canada, Invest Nova Scotia is actively working to attract data centre investments, saying Nova Scotia has “everything data centre operators need to stay competitive in an increasingly complex world.” In New Brunswick, a $2-billion data centre is currently planned for Saint John. Public debate in Prince Edward Island has centred around whether the province has the electrical capacity or water supply an AI data centre would need, while a proposed multi-billion-dollar data centre in Newfoundland would harness power from wind turbines.

These projects underscore an important reality: AI is not simply a software revolution. It is an infrastructure revolution.

Every new data centre requires reliable electricity, high-speed connectivity, construction, engineering expertise, and a skilled workforce capable of supporting long-term operations. Success will depend as much on energy policy, workforce development, and permitting processes as it will on technological innovation itself.

Investors committing billions of dollars need confidence regulatory frameworks are predictable and governments are willing to work collaboratively with industry while safeguarding the public interest. At the same time, local communities deserve meaningful engagement on issues ranging from environmental impacts to energy demand and land use.

Balancing those priorities will be one of the defining policy challenges of the coming years.

The conversation around artificial intelligence should therefore extend beyond algorithms and automation. It is ultimately about economic competitiveness, regional development, and Canada’s place in the global economy.