Marking a major leap in Canada's artificial intelligence (AI) infrastructure TELUS Corporation TU has announced its intention to launch the first Sovereign AI Factories in Rimouski, Quebec, and Kamloops, British Columbia. These facilities are poised to position the two communities at the heart of Canada's next generation of secure and sustainable artificial inteliigence (AI) innovation. In alignment with the Pan-Canadian AI Strategy, the initiative aims to strengthen Canada’s digital economy by offering sovereign, high-performance AI computing capabilities within its borders.

As the first North American service provider to become an official NVIDIA Corporation NVDA Cloud Partner, TELUS will equip these facilities with NVIDIA’s cutting-edge Hopper- and Blackwell-based supercomputers. Operations are set to begin this summer in Rimouski, with expansion to Kamloops to follow soon after.

What Does Sovereign AI Factories Offer?

These Sovereign AI Factories build upon TELUS’ decade-long legacy of driving regional innovation through digital infrastructure. Its data centres have historically played a crucial role in supporting startups, public institutions and enterprises, while also nurturing local talent. The new AI Factories represent an evolution of that legacy, offering new opportunities in Canada’s fast-growing AI economy.

Fully owned, operated and secured by a Canadian company, these AI Factories ensure that critical sectors such as healthcare, finance and public services can rely on trusted, sovereign data processing. Moreover, sustainability remains a central pillar of the initiative. Powered by 99% renewable energy, the facilities are among the world’s most environmentally responsible data centres. Their innovative natural cooling systems cut water usage by more than 75%, saving 17 million litres annually and reducing more than 300 tons of carbon emissions — the equivalent of powering 1,000 homes.

By strategically placing the AI hubs in both eastern and western Canada, TELUS is democratizing access to next-gen computing and reinforcing the country’s role as a technological leader. These AI Factories also complement TELUS’ Fuel iX platform, which provides organizations with secure, enterprise-grade generative AI solutions.

Ultimately, TELUS’ Sovereign AI Factories mark a bold and timely investment in Canada’s digital future. Through strategic innovation, strong partnerships and a firm commitment to national growth, TELUS is ensuring that the advancement of AI is done by Canadians, for Canadians and within Canada.

TELUS’ efforts to revolutionize digital transformation, notably with the adoption of generative AI technology, bode well. In May 2024, it achieved a significant milestone by becoming the first company in the world to receive international certification in Privacy by Design (ISO 31700-1) for its generative AI (GenAI) customer support tool. The company is investing $73 billion across Canada by 2028 to drive socio-economic growth for the nation. This includes more than $24 billion across Ontario, more than 16 billion across Alberta and $17 billion across British Columbia to improve its network services over the next five years to promote innovation and growth.

TU’s Zacks Rank & Stock Price Performance

TU currently carries a Zacks Rank #3 (Hold). Shares of the company have inched up 5% in the past three months against the Zacks Diversified Communication Services industry's decline of 4.2%.

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Stocks to Consider From the Utilities Space

Some better-ranked stocks from the broader utilities space are Atmos Energy Corporation ATO and CMS Energy Corporation CMS. ATO and CMS carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Atmos Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.85%. In the last reported quarter, ATO delivered an earnings surprise of 1.36%. The company’s long-term earnings growth rate is 7.2%. Its shares have gained 8.7% in the past six months.

CMS Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 4.76%. In the last reported quarter, CMS delivered an earnings surprise of 1.16%. Its shares have increased 24.8% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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