Telus and Nvidia to Build Canada’s First “Sovereign AI Factory”

• Telus (TSX:T) is partnering with Nvidia (NASDAQ:NVDA) to launch Canada’s first Sovereign AI Factory, providing businesses and researchers with secure, high-performance AI infrastructure. 

• The facility, powered by 99% renewable energy, will use Nvidia’s latest AI supercomputers, with plans for future expansion in British Columbia.

• Despite the announcement, Telus stock saw little movement, remaining down 9% over the past year, though its 7.4% dividend yield continues to attract income-focused investors.

Telus is set to transform Canada’s AI landscape by partnering with Nvidia to build the country’s first Sovereign AI Factory, a state-of-the-art computing facility aimed at keeping AI development within national borders. The Quebec-based site will provide businesses and researchers with the supercomputing power and software tools needed to train and deploy AI models, ensuring data security and compliance with Canadian regulations. 

This initiative marks a milestone in Telus’ AI strategy, reinforcing its leadership in responsible AI adoption and digital innovation. The company has been at the forefront of AI integration, embedding the technology across its network while actively shaping global AI governance through participation in the OECD’s AI framework and Canada’s AI Code of Conduct. 

Cutting-Edge AI Infrastructure 

The AI Factory will deploy Nvidia’s latest Hopper- and Blackwell-based supercomputers, designed for faster AI model training, fine-tuning, and inference. This will enable businesses to scale AI-driven solutions efficiently, boosting Canada’s competitive edge in the global AI race. 

The facility will be powered by Telus’ ultra-low-latency fiber-optic network and operate on 99% renewable energy from Hydro-Quebec. Its energy-efficient design will consume 75% less water than traditional data centers while being three times more power-efficient. With these sustainability measures, Telus’ AI Factory is poised to become one of the world’s most eco-friendly AI data centers. 

As the first North American telecom provider to become an official Nvidia Cloud Partner, Telus is positioning itself at the forefront of AI infrastructure. This initiative could accelerate Canadian AI innovation, allowing companies to develop cutting-edge solutions without relying on foreign computing resources. 

Stock Performance and Investor Outlook 

Despite the significance of the announcement, Telus stock remained largely unchanged. Over the past year, shares have declined 9%, reflecting stagnant revenue growth. In 2023, Telus reported $993 million in profit on $20.1 billion in revenue, with flat year-over-year sales. 

The stock currently trades at 32 times trailing earnings but a more reasonable 21 times forward earnings, suggesting potential upside if earnings growth materializes. With interest rates expected to decline, Telus’ 7.4% dividend yield could attract more income-focused investors looking for stability in a high-yield stock. 

A Strong Pick for Dividend and Long-Term Investors 

While Telus’ AI ambitions could drive long-term growth, its primary appeal remains its consistent cash flow and reliable dividend. For TFSA investors and dividend-focused portfolios, Telus remains a stable, long-term hold, offering income security with potential upside from AI-driven innovation.