TELUS Corporation TU recently partnered with NVIDIA NVDA to design Canada’s top Sovereign AI Factory, a highly secure facility providing businesses and researchers with advanced technology. This center will support AI innovation, improve efficiency, and ensure competitiveness by offering powerful supercomputers and software for AI training while keeping data securely within Canada. 

Per the collaboration, TELUS will install NVIDIA's cutting-edge GPUs at its Quebec data center by the summer of 2025, following NCP Reference Architectures and software. Expansion is planned for its British Columbia facility as well. The Sovereign AI Factory will utilize TU's high-speed, low-latency fiber network and sustainable data centers powered by 99% renewable energy to provide AI as a Service.

TELUS' data centers are three times more energy efficient than the industry average, using less electricity for AI workloads. They also rely on natural cooling, reducing water use by more than 75% compared to traditional centers. With these eco-friendly measures, TELUS' Sovereign AI Factory will be among the world's most sustainable AI-ready data centers.

The AI Factory will be powered by NVIDIA's latest Hopper- and Blackwell-based supercomputers, enabling faster AI model training, fine-tuning, and advanced inference. TELUS will be among the first to bring these high-performance computing platforms to Canada, strengthening the nation's AI ecosystem. The Sovereign AI Factory will provide businesses and researchers with the computing power needed to scale, enhance productivity, and drive innovation. With this secure, high-performance facility, Canadian businesses can develop AI solutions locally while ensuring compliance with national security and privacy regulations.

TU’s Commitment to AI Advancements Bodes Well

TELUS has long been a pioneer in AI adoption, embedding AI-driven solutions across its operations and services. With the launch of the Sovereign AI Factory, TELUS reinforces its commitment to responsible AI development and Canadian AI sovereignty. In 2023, it became the first Canadian telecom to sign the Government of Canada’s Voluntary AI Code of Conduct, ensuring AI is used transparently, fairly and responsibly.

The company was the first to earn Privacy by Design certification (ISO 31700-1) for its AI-powered support tool. It is one of 20 global groups in the OECD AI framework, contributing to G7 AI governance. TELUS is also recognized by the Responsible AI Institute for ethical AI practices, emphasizing its commitment to responsible AI innovation.

TELUS’ investment in AI infrastructure also creates new opportunities for job growth, particularly in AI research, cloud computing, and data security, strengthening Canada’s AI workforce.

TU’s Zacks Rank & Stock Price Performance

TU currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 10.1% in the past year compared with the sub-industry's decline of 11.8%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC and Arista Networks, Inc. ANET. IDCC presently sports a Zacks Rank #1 (Strong Buy), while ANET carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Arista delivered a trailing four-quarter average earnings surprise of 12.87%. It has a long-term growth expectation of 14.41%. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.



 

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