Saskatchewan’s newly unveiled data centre development policy puts Canadian ownership, data sovereignty and local job creation at the centre of the province’s digital infrastructure strategy. For Toronto-based Celestica (TSX:CLS), a hardware platform and supply chain solutions provider, that localization push is already translating into measurable demand growth.
The provincial framework, announced on August 27, outlines six key principles: domestic ownership and data sovereignty, creation of Saskatchewan jobs, industry experience, a centralized provincial intake process and self-supplied power generation. Speaking at Bell Canada’s AI data centre construction site near Regina, Minister Jeremy Harrison said the real question is where AI infrastructure will be built and whose laws will govern it. More than 30 data centre development applications now before the province will be assessed under the new framework.
Bell Canada’s $1.7 billion AI data centre is Saskatchewan’s first major outside investment in the sector and is expected to generate $12 billion in economic activity. While SaskTel already operates six cloud storage data centres, the Bell project marks the first large-scale entry of external capital into the province’s data centre space. Under the new policy, future data centre or AI infrastructure investments must generate their own power behind the fence and bear the cost. Bell’s project is treated as an exception because SaskPower has the capacity to supply the facility; diesel generators on site serve only as backup. The project uses a closed-loop cooling system with zero groundwater consumption, with municipal water connections sized only for domestic use and fire protection.
The localization drive is visible in supply chain decisions. Bell Canada group president John Watson stressed the need to build engineering, fabrication and permanent construction advantages in Canada rather than elsewhere. He pointed to Prairie Steel, a Clavet-based manufacturer that invested $20 million in new equipment for the project. Each of the four buildings requires 1.2 million pounds of structural material, with 70 percent of manufacturing work and 80 percent of labour performed in Clavet. The policy does not mandate public consultation, but rural municipalities may conduct their own consultations and compatibility assessments.
Celestica sits squarely in this domestic buildout. The company designs and manufactures hardware platforms and supply chain solutions across two segments: Connectivity & Cloud Solutions (CCS) and Advanced Technology Solutions (ATS). CCS serves data centre infrastructure demand directly. In the latest quarter ended in June, revenue rose 62 percent year over year to US$4.7 billion, exceeding the high end of guidance on stronger-than-expected customer demand and solid operational execution. Adjusted earnings per share climbed to US$2.54 from US$1.39 a year earlier, while adjusted operating margin reached a company record of 8.2 percent, up from 7.4 percent. CCS segment revenue jumped 84 percent to US$3.8 billion, and hardware platform solutions revenue grew 58 percent to roughly US$1.9 billion.
Capital markets have taken notice. Celestica shares have risen more than 60 percent over the past year to C$407.67, giving the company a market capitalization of C$51.3 billion. Management expects 2027 revenue growth to accelerate beyond the 65 percent anticipated for 2026, with adjusted earnings per share growing faster than revenue and adjusted operating margin continuing to expand.
For investors looking to participate in the AI data centre buildout without chasing large chipmakers, Celestica offers a path through the domestic supply chain. Saskatchewan’s policy strengthens the case for data centre construction inside Canada and sharpens the demand outlook for local hardware suppliers.
