BCE Inc. reported third-quarter operating revenue of $6.18 billion, marking a strategic shift toward AI-driven tech services. CEO Mirko Bibic is currently navigating local opposition to a massive $50-billion data centre project located south of Regina, Saskatchewan.
The 41% surge in AI-powered solutions revenue
BCE Inc. is aggressively transitioning from a traditional telecommunications provider to a tech-services firm. According to the report, business markets revenue—which encompasses both telecom and AI services—reached $1.12 billion this quarter, a 9.2 per cent increase over the previous year. The most striking growth occurred within AI-powered solutions, which saw a 41 per cent revenue jump driven by the company's Ateko and Bell Cyber brands.
This pivot reflects a broader industry trend where legacy carriers are attempting to escape the stagnation of saturated mobile markets by becoming the backbone of the generative AI era. By investing in high-compute infrastructure, BCE Inc. is positioning itself not just as a pipe for data, but as the engine that processes it.
Standing Buffalo Dakota Nation's challenge to the Regina campus
The center of this strategy is a $50-billion data centre project in Saskatchewan that Bell recently announced would be quadrupled in size to a potential capacity of 1.2 gigawatts. While CEO Mirko Bibic noted that the project has already brought over 1,100 workers to the site and enjoys support from the George Gordon First Nation, it has faced significant pushback from the Standing Buffalo Dakota Nation.
Chief Rodger Redman has asserted that the campus is being constructed on unceded traditional territory. As reported, Chief Redman requested technical reports and approval records to conduct an independent review, claiming that the details provided by Bell remain incomplete. This tension highlights the recurring conflict in Canadian infrastructure development, where federal and provincial approvals often clash with the land rights and environmental concerns of Indigenous communities.
The $7 billion asset sale plan to reduce debt
To fund this AI expansion and manage its balance sheet, BCE Inc. is engaged in a massive "capital recycling" efforrt. The company has set a target to sell $7 billion in assets to pay down debt. A key component of this is the deal to sell a 49.9 per cent stake in its wireless towers to the Quebec investment manager La Caisse for $2.45 billion, a transaction expected to close in early 2027.
Additionally, Bell Mobility is selling its land mobile radio networks services to Motorola Solutions for $675 million. Scotiabank analyst Maher Yaghi noted that these divestitures are critical, as they provide the financial flexibility required to scale the Saskatchewan data centre toward its 1.2 gigawatt goal.
The shifting terms of the Northwestel sale to Sixty North Unity
One significant uncertainty remains regarding the potential $1-billion sale of Northwestel Inc. to Sixty North Unity, a consortium of northern Indigenous communities. While the deal was announced in 2024,Mirko Bibic revealed that the parties are now pursuing an alternative transaction structure.
It remains unclear exactly how the terms or timing of this deal will change, or why the original structure was abandoned. While Bibic maintains that a transaction will likely still occur and will provide the intended deleveraging effect, the shift suggets that the complexities of selling a northern telecom provider to an Indigenous consortium are proving more difficult than initially anticipated.
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