INVEST CANADA
A New Investment Cycle Is Taking Shape
For many years, Canadian investors have watched some of the world’s most exciting investment opportunities develop outside our borders. That may be beginning to change. This week’s Canada Investment Summit brought together global investors, Canadian pension funds, financial institutions, business leaders and government with a central message:
Canada needs to build again.
And for investors, that’s worth paying attention to. Prime Minister Mark Carney outlined an ambitious agenda centred around energy, infrastructure, electricity, nuclear power, critical minerals, artificial intelligence, defence and major national projects. The federal government reported nearly $500 billion in investment and financing commitments surrounding the summit, including commitments from Canadian pension funds, financial institutions and investment managers.
Former Prime Minister Stephen Harper approached the issue from a different political perspective, but his economic message shared several important themes: develop Canada’s natural resources, expand energy production, diversify our markets and reduce our economic dependence on a single trading partner.
For us, this isn’t about politics. It’s about investment. It raises an important question:
Could Canada be entering a multi-year capital investment cycle? We believe it is a question worth exploring.
The themes we’re watching
Rather than trying to predict which individual government project will succeed, we are looking at the businesses that may provide the infrastructure, energy, technology and services required if Canada enters a sustained building cycle.
POWER & ELECTRICITY
AI data centres, manufacturing, mining, electrification and industrial expansion all require one thing: More electricity.
Capital Power (TSX: CPX) is one company we’re watching. It has already entered into a long-term agreement to provide 250 MW of power for Meta’s planned Alberta data centre beginning in 2028.
ENERGY INFRASTRUCTURE
If Canada expands LNG exports, natural gas infrastructure and access to international markets, existing infrastructure owners may play an important role.
Enbridge (TSX: ENB) continues to expand its Western Canadian natural gas infrastructure. Its Westcoast system is undergoing major expansion, partly to serve growing LNG export demand from British Columbia.
NUCLEAR & URANIUM
Canada has one of the world’s strongest nuclear ecosystems, from uranium production to reactor technology. AtkinsRéalis (TSX: ATRL) stewards Canada’s CANDU nuclear technology and is positioned within Canada’s renewed nuclear development strategy.
Cameco (TSX: CCO) provides exposure across the nuclear fuel cycle through its Canadian uranium operations and its investment in Westinghouse.
BUILDING THE INFRASTRUCTURE
Someone must ultimately build the power facilities, data centres, mines, transportation systems, and other infrastructure. Bird Construction (TSX: BDT) is particularly interesting from this perspective. Its work spans nuclear, mining, industrial and major infrastructure projects, and Bell recently selected Bird as a construction partner for its Saskatchewan AI data centre as part of a broader Canadian AI infrastructure buildout.
We think of companies like this as the “picks and shovels” of Canada’s investment cycle. They don’t necessarily need to predict which industry wins; they may benefit from helping build the infrastructure several industries require.
AI & DATA INFRASTRUCTURE
Artificial intelligence isn’t only about software. Behind AI are enormous data centres filled with computing equipment, high-speed networking and power infrastructure. Celestica (TSX: CLS) is a Canadian company providing advanced data-centre and networking infrastructure. It is working with AMD on next-generation rack-scale AI infrastructure.
Hammond Power Solutions (TSX: HPS.A) manufactures transformers and power-quality equipment, the less glamorous equipment that becomes increasingly important as electricity demand grows. The company reported that data centres, electrification, and power-infrastructure investment are driving strong demand.
DEFENCE, SPACE & CANADIAN SOVEREIGNTY
Defence and national security are becoming another significant area of Canadian capital spending.
MDA Space (TSX: MDA) provides satellite, space and defence technology and recently expanded further into Canadian defence through its 49North business. It has also received a $688-million Canadian Space Agency contract for a next-generation sovereign satellite.
The Bigger Investment Story
When we put these pieces together, an interesting investment chain begins to emerge:
Global & Canadian Capital
↓
Energy • Nuclear • Critical Minerals • Defence • AI
↓
Power Generation & Electricity Infrastructure
↓
Engineering & Construction
↓
Equipment, Technology & Industrial Suppliers
↓
Canadian Businesses & Economic Growth
We will be watching this closely over the coming months and years. Not every announced project will proceed. Not every company associated with these themes will be a good investment. And even excellent companies can become poor investments if purchased at excessive valuations. That distinction is important.
Our approach at RetirementIQ
We don’t chase headlines. Instead, we look for businesses with strong underlying fundamentals that could benefit from an additional long-term tailwind as economic changes begin around them.
Companies currently on our research radar include:
- Enbridge (ENB), Energy & natural gas infrastructure
- Capital Power (CPX), Power generation & data-centre demand
- AtkinsRéalis (ATRL), Nuclear, engineering & infrastructure
- Cameco (CCO), Uranium & nuclear energy
- Bird Construction (BDT), Infrastructure, construction & major projects
- Celestica (CLS), AI & data-centre infrastructure
- Hammond Power Solutions (HPS.A), Transformers, electrification & power infrastructure
- MDA Space (MDA), Defence, satellites & sovereign technology
These companies are not recommendations to purchase today. They represent examples of the types of Canadian businesses we believe deserve closer attention as this investment theme develops.
Canada has the resources; Canada has the technology, and Canada has the people. And increasingly, Canada may have the capital to put them to work. For investors, that could make the next several years considerably more interesting. We will continue watching these developments and looking for opportunities that fit within a disciplined, diversified long-term investment strategy.
Krystian
Disclaimer: This material is provided for general informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. The companies mentioned are examples of businesses we are monitoring within broader investment themes and may not be suitable for all investors. Investment decisions should be based on your individual objectives, risk tolerance, time horizon and financial circumstances. Past performance does not guarantee future results. Before making any investment decision, please speak with your financial professional.