Why AI Data Centres Could Be Canada's Next Big Investment Opportunity

2026-02-17 16:00:00 ET

If you still think artificial intelligence (AI) is just about software, you may want to think again. Every AI tool, chatbot, or smart system runs on data centres, something very physical. These facilities are packed with powerful servers and networking equipment that make AI possible.

As large global tech companies rush to build more advanced AI systems, they need more computing power than ever before. That means more high-performance servers, faster networking systems, and specialized hardware. While Canada does not have many trillion-dollar AI giants, it does have companies that help build the backbone of this technology. And one TSX -listed stock, Celestica ( TSX:CLS ), is turning out to be a key player in this global expansion. Let me explain how.

Celestica’s role in AI data centre growth

Celestica may not be a household name like some Silicon Valley tech giants, but it plays an important role behind the scenes. Based in Toronto, this Canadian company designs and manufactures hardware platforms and supply chain solutions for some of the world’s largest cloud and enterprise technology companies.

Following an eye-popping 2,150% jump over the last three years, CLS stock currently trades at $403.96 per share, giving it a market cap of about $46.4 billion.

Celestica operates through two main business segments, Connectivity and Cloud Solutions (CCS), and Advanced Technology Solutions (ATS). The CCS segment includes servers, storage systems, and networking platforms. This has become the company’s main growth driver as demand for AI-related infrastructure continues to surge.

Despite macroeconomic uncertainties, its latest financial results show just how strong the demand for its services has been. In the fourth quarter of 2025, Celestica’s revenue surged by 44% YoY (year-over-year) to US$3.7 billion. For the full year 2025, revenue reached US$12.4 billion, reflecting 28% growth compared to 2024.

Its profit growth has also been strong. For the full-year, the company’s adjusted earnings jumped 56% YoY to US$6.05 per share.

In the fourth quarter alone, Celestica’s CCS segment’s revenue surged 64% YoY to US$2.9 billion with the help of demand from hyperscale cloud providers building AI infrastructure.

Financial momentum with multi-year visibility

Celestica’s growth does not appear to be a short-term spike. For 2026, the company expects revenue of about US$17 billion and adjusted earnings of US$8.75 per share. That is a significant step up and reflects the expanding scale of its AI-related programs.

To support this growth, Celestica plans to increase capital spending to roughly US$1 billion in 2026. In addition, the company is expanding manufacturing capacity in the United States and Southeast Asia to meet the long-term plans of its large cloud customers.

Why AI data centres could drive the next long-term investment wave

AI infrastructure is one of the most capital-intensive technology shifts in decades. Training and running advanced AI models requires enormous computing power, fast networking, specialized chips, and reliable global manufacturing. Companies that can deliver this hardware at scale become close partners to the largest technology players in the world. Celestica’s global footprint, engineering expertise, and integrated supply chain capabilities put it on that list. Considering that, for Canadian investors looking for AI exposure beyond software developers and chip designers, this data centre-focused Canadian AI infrastructure stock looks like a great buy for the long term.

The post Why AI Data Centres Could Be Canada’s Next Big Investment Opportunity appeared first on The Motley Fool Canada .

Fool contributor Jitendra Parashar has positions in Celestica. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy .

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