BCE is accelerating its artificial intelligence infrastructure strategy, with 2026 capital expenditures expected to increase by $1.3 billion from 2025 primarily because of the construction of Bell AI Fabric’s 300 MW data center in Saskatchewan.
The higher spending is expected to push BCE’s 2026 capital intensity to approximately 20%. The company also expects free cash flow of $2.1 billion to $2.3 billion as the additional AI infrastructure investment weighs on near-term cash generation.
The buildout is already visible in BCE’s quarterly numbers. Q2 capital expenditures increased 41.5% year-over-year to $1.08 billion from $763 million, reflecting greater investment in Bell AI Fabric data centers in Canada as well as $163 million of U.S. investment supporting Ziply Fiber’s FTTP expansion.
Free cash flow declined 9.5% to $1.042 billion, although cash flow from operating activities increased 11% to $2.162 billion. BCE generated $6.176 billion of Q2 revenue, up 1.5%, while adjusted EBITDA increased 1% to $2.702 billion.
The AI infrastructure investment is being supported by growth across BCE’s enterprise technology operations. Combined Ateko and Bell Cyber revenue increased 29% year-over-year, while Bell AI Fabric reached important construction milestones in Saskatchewan and continued progressing its expansion in Merritt, British Columbia.
BCE is positioning Bell AI Fabric as part of a broader sovereign AI infrastructure strategy in Canada, while expecting growth from AI-powered enterprise solutions to contribute to higher revenue and adjusted EBITDA over time.
KEY QUOTES:
“We advanced our work on Bell AI Fabric including important construction milestones in Saskatchewan and progress on the Merritt, B.C. expansion. Combined revenue for Ateko and Bell Cyber remained strong in Q2, up 29% year over year, demonstrating clear momentum in AI-powered enterprise solutions.”
“Overall, Q2 shows continued execution against our roadmap. We are focused on the operating drivers that support long-term revenue, adjusted EBITDA and free cash flow growth.”
Mirko Bibic, President and CEO of BCE and Bell Canada
