BusinessUnder the agreement, Bell will provide data centre capacity at its facility in Merritt, B.C, while two other companies will provide hardware and cloud-layer capabilities.Under the agreement, Bell will provide data centre capacity at a facility in B.C.Sammy Hudes · The Canadian Press · Posted: Jun 18, 2026 3:50 PM EDT | Last Updated: 1 hour agoListen to this articleEstimated 3 minutesThe audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.People walk past the Bell Media Studios, on Toronto's Queen St., in June 2024. Bell announced a deal on Thursday to provide AI infrastructure for Canadian AI company Cohere. (Evan Mitsui/CBC)Bell Canada has signed an artificial intelligence infrastructure deal with Cohere that will see the AI firm operate its large language models through Bell AI Fabric, with support from two other companies.Under the agreement, Bell will provide data centre capacity at its facility in Merritt, B.C. The companies are also working with Buzz High Performance Computing, a subsidiary of Vancouver-based Hive Digital Technologies Ltd., which will deliver an AI-native cloud layer using Quebec-based Hypertec's hardware cluster and Nvidia accelerated computing to support production-grade AI workloads.Cohere, which is based in Toronto, will use the platform to operate its foundation models and support secure, enterprise-grade AI solutions for government and business customers.Investors fear an AI bubble. What about computer scientists?The four companies say they will build the conditions needed to conduct critical research and development for AI models using Canadian infrastructure."This agreement underscores the role Bell AI Fabric is playing in helping organizations move from experimentation to production on infrastructure that is located, operated and governed in Canada," said Michel Richer, president of Bell AI Fabric, in a news release.WATCH | Carney unveils national AI strategy focused on jobs, safety and sovereignty:Carney unveils national AI strategy focused on jobs, safety and sovereigntyJune 4|Duration 6:17Prime Minister Mark Carney has launched Canada’s artificial intelligence strategy dubbed 'AI for All.' It promises AI literacy training, up to 250,000 new jobs and a Canadian-built supercomputer.The Montreal-based telecommunications giant announced the launch of Bell AI Fabric more than a year ago to provide services to Canadian businesses and governments for their AI needs, ranging from strategy and application development to infrastructure deployment.Bell has touted it as the largest AI compute project in the country.Recently, Bell parent company BCE Inc. raised its revenue target for its growing AI business as it moves forward with plans to build a cluster of data centres, while promising to maintain "responsible usage" of the technology. The company now expects to generate about $2 billion in revenue from its portfolio of AI-powered enterprise solutions by 2028.Along with Bell AI Fabric, BCE launched tech services brand Ateko and cybersecurity brand Bell Cyber last year, forming the anchors of its pivot toward tech services. The company reported that AI-powered solutions revenue from those three brands grew 113 per cent year over year in its first quarter.WATCH | A hyperscale AI data centre boom is coming:A hyperscale AI data centre boom is comingJune 3|Duration 6:21A boom in hyperscale AI data centres in Canada is coming, promising economic opportunity and tech sovereignty, but as CBC’s Nora Young explains, there’s a growing resistance to the impact the massive, power-hungry facilities have on local communities.Bell and Cohere first announced a partnership last July to provide full-stack sovereign AI solutions for government and enterprise customers across Canada.At the time, the companies said Bell AI Fabric would incorporate Cohere's agentic AI platform North, making it available to government and enterprise customers and enabling them to create AI agents and automation solutions without managing AI infrastructure.AnalysisOne of the world's biggest AI companies wants a deal with Canada. Is sovereignty the trade-off?"For enterprises and governments, adopting AI is not just about having access to powerful models. It's about knowing where those models run, how data is protected and whether the technology can be deployed with the security and reliability their work requires," said Michael Pelosi, Cohere's country manager for Canada, said Thursday."This collaboration gives Cohere another way to support customers in Canada with advanced AI that is built for real use, on infrastructure that reflects Canadian priorities."ABOUT THE AUTHORSammy Hudes is a business reporter with The Canadian Press