Canada launches Artificial Intelligence Sovereign Compute Infrastructure Program: funding, eligibility, and key requirements

On April 15, 2026, the federal government launched the Artificial Intelligence Sovereign Compute Infrastructure Program (SCIP), an initiative under the Canadian Sovereign AI Compute Strategy intended to support the development of large-scale, sovereign public AI compute infrastructure accessible to Canadian researchers and innovators¹. In addition, the government’s Spring Economic Update (PDF) outlined the six pillars that will underpin Canada’s forthcoming National AI Strategy. Interested industry proponents should consider the SCIP and its requirements under the program guide when assessing how to leverage this public compute infrastructure funding, and should also take into account the newly announced pillars to align their proposals with Canada’s sovereign AI compute objectives.

What you need to know

• Significant funding opportunity with strict eligibility: Interested proponents have until June 1, 2026, to submit an application under the Infrastructure Build Layer, with up to $890 million in funding available to support the design, construction, and ongoing operation of a compute system over seven years starting in fiscal year 2026-2027. For-profit companies cannot apply directly but may participate as consortium partners, creating potential collaboration opportunities with academic and research institutions seeking industry expertise.
• Federal AI compute initiatives: The SCIP advances the federal government’s effort to stimulate investment in sovereign AI compute infrastructure using funding allocated in Budgets 2024 and 2025. Other initiatives include the January call for proposals to develop large-scale sovereign AI data centres, with selected proponents entering into a memorandum of understanding with the federal government to explore mechanisms to carry out government-supported projects.
• Sovereignty requirements: Proposals must demonstrate Canadian ownership or legally enforceable control throughout the full lifecycle of the facility, explain how the project will “prioritize” data residency in Canada, and provide supply chain plans detailing how Canadian technologies and services will be integrated across hardware, software, and operational layers. While certain aspects of the sovereignty requirements are stringent, the requirements still allow for a measured degree of non-Canadian involvement.
• Timeline for delivery: Successful applicants are expected to have significant service offerings within 18 months of entering into a contribution agreement with the government. Organizations should assess their readiness to meet this target.
• Comprehensive application requirements: Applications require extensive documentation, including three years of financial statements, detailed technical requirements (e.g., hardware, energy, cooling, security), governance structures, and evidence of meaningful Indigenous engagement.
• Assessment favours alignment with national priorities: 40 percent of the overall application score is based on alignment with SCIP's five core priorities, making it essential for applicants to clearly articulate how their proposals advance Canada's strategic AI objectives.

The National AI Strategy: six pillars

Released on April 28, the Spring Economic Update previewed the six pillars that will underpin the forthcoming National AI Strategy. While the SCIP appears to directly advance the fourth pillar, applicants should consider how their proposals engage with all six pillars and monitor announcements regarding the forthcoming strategy. The six pillars are as follows:

1. Protecting Canadians and safeguarding our democracy: Establishing modern privacy and online safety laws, strengthening national AI safety capabilities, and securing government systems to build public trust in AI.
2. Empowering Canadians: Making Canada an “AI skills nation” by expanding access to AI training and education, creating jobs, and ensuring Canadian voices, languages, and culture are represented.
3. Powering AI adoption for shared prosperity: Accelerating AI adoption across the economy, particularly among small- and medium-sized enterprises, and transforming public service delivery.
4. Building the Canadian Sovereign AI Foundation: Developing sovereign compute infrastructure at scale that is resilient, sustainable, and under Canadian governance, while growing Canada's AI research talent.
5. Scaling Canadian champions: Unlocking growth capital and leveraging government as a strategic anchor customer.
6. Building trusted partnerships and global alliances: Working with trusted partners to align standards, co-invest in innovation, and help Canadian companies access global markets while shaping an AI ecosystem anchored in democratic values.

Program overview

The delivery of the SCIP is structured around two layers: an Infrastructure Build Layer, responsible for constructing state-of-the-art AI supercomputing infrastructure, and a National Service Layer, which will handle user support and integration with Canada's existing digital research infrastructure. Together, these layers form a coordinated national ecosystem requiring strong collaboration. The successful proponent of the Infrastructure Build Layer will be required to work closely with the National Service Layer provider to integrate the new compute infrastructure.

The program guide includes a table which identifies the roles, responsibilities, and areas requiring collaboration between the two layers to deliver a cohesive end-to-end user experience. This current call for applications is only for the Infrastructure Build Layer.

The SCIP is guided by five core priorities to bolster Canada’s large-scale, sovereign AI compute capability. Critically, when evaluating the application, Innovation, Science and Economic Development Canada (ISED) will assess how the application is aligned with these core priorities, which together account for 40 percent of the assessment.

Proponents seeking SCIP funding must demonstrate how their proposals align with the priorities, which include:

1. Increasing compute capacity by expanding high-performance, AI-optimized infrastructure to meet growing demand from the research and innovation sector.
2. Speed to delivery to ensure rapid deployment and timely access in a fast-evolving global landscape.
3. Future scalability by designing systems capable of modular expansion and adaptation to evolving technological needs.
4. Sovereignty and governance by establishing a “Canadian-located, Canadian-governed system”. This includes ensuring that data residency and operational control remain in Canada.
5. Economic impact through contributions to industrial R&D, domestic supply chains, collaboration opportunities, and the development of highly qualified talent.

Program requirements

Eligible applicants for SCIP funding are limited to:

• not-for-profit organizations incorporated in Canada;
• postsecondary institutions incorporated in Canada; and
• consortia led by such organizations that may include academic, research, and industry partners.

All proposals must also satisfy sovereignty requirements, meaning that core compute and storage infrastructure must be owned or contractually controlled by Canadian entities, with governance and decision-making authority resting with Canadian institutions. Data residency in Canada is prioritized, and supply contracts should maximize Canadian integration while limiting lock-in risks with foreign vendors. Sovereignty is assessed both at the initial screening stage to confirm eligibility and also as part of the two-part assessment. The sovereignty requirements at the assessment stage includes similar factors, such as ensuring Canadian data residency and retaining decision-making authority with Canadian institutions.

While certain aspects of the sovereignty requirements are stringent, the requirements still allow for a measured degree of non-Canadian involvement. In particular, the infrastructure control requirements emphasize the need for safeguards to “limit instances in which a foreign party can unilaterally restrict use or access” to the compute infrastructure (as opposed to imposing a total prohibition on foreign participation). Additionally, the SCIP requires applicants to only “prioritize” data residency in Canada. Together, these elements suggest a degree of flexibility in the SCIP’s guidance on how principles of data sovereignty may be satisfied, particularly for AI compute initiatives where use cases may vary in sensitivity.

Eligible activities under this call include but are not limited to building and enhancing compute infrastructure, developing sovereign data storage solutions, and supporting research data management. Eligible costs are those approved by the Minister as necessary to advance SCIP's objectives and eligible activities, and may include expenditures related to infrastructure construction, leasing, maintenance, and operations, as well as salaries, equipment, professional services, and talent development training.

Applying for the program

Application requirements, deadline, and assessment

Applicants must submit detailed information including organizational details, key staff qualifications, technical requirements (such as providing service and hardware deliverability within 18 months of entering into a contribution agreement), sovereignty requirements, economic benefits, Indigenous partnerships, estimated costs, funding sources, and a fiscal year breakdown of all project funding, among other requirements. For the full details on the SCIP’s 11 application sections, applicants should consult the program guide.

Prospective applicants must request the application form from ISED at aiscip-picsia@ised-isde.gc.ca and submit their application by 1:00 p.m. ET on June 1, 2026 to the same email. The lead applicant will serve as the main point of contact with ISED and may only lead one application while participating in others as a consortium or partnership member.

Applications will undergo a multi-stage assessment process beginning with an initial screening to confirm applications are complete and eligible. ISED will confirm whether the applicant is an eligible organization, has provided proof of its not-for-profit or institutional legislative status, and meets the SCIP’s sovereignty requirements. Interested proponents should consider these sovereignty requirements and whether they are able to meet the Canadian ownership and decision-making obligations as part of this initial screening.

Following the initial screening, ISED will conduct a two-part evaluation consisting of (i) a Technical Execution Assessment, which assesses the applicant's capacity to deliver the proposed infrastructure, and (ii) a Priorities Assessment, which accounts for 40 percent of the overall score and evaluates the proposal’s alignment with SCIP's five core priorities described above.