Prime Minister Mark Carney recently announced that Canada has finally hit the NATO spending target of 2% of our GDP. This means the government is investing over $63 billion into its national defense this year alone. For those in construction, this translates to a massive $59 billion pipeline of infrastructure projects over the next 10 years.
Building a stronger Atlantic hub
The first wave of this investment is hitting Atlantic Canada, with over $3B in planned work. A huge chunk of this, about $1.2B, is going toward modernizing the power and municipal services at the CFB Halifax Dockyard and Stadacona. These upgrades are essential to make sure the base can handle the next generation of naval ships.
Other major projects in the region include a $648M contract to build new aviation hangars and maintenance facilities at 14 Wing Greenwood. In New Brunswick, the government is putting $1B into CFB Gagetown to upgrade the training ranges and build new facilities for ground-based air defense systems. This work is expected to support around 340,000 jobs across the country as the projects roll out.
The push for Northern infrastructure
One of the most ambitious parts of this plan is the $40B strategy for the Arctic and the North, which involves building dual-use infrastructure to support local communities, as well as a robust military base. A major highlight is the Mackenzie Valley Highway, an 800 km all-season road that will finally connect Yellowknife to Inuvik.
The government also plans to build a deepwater port and an airstrip at Grays Bay in Nunavut. To power these remote areas, the Taltson Hydro Expansion project will double the hydro capacity in the Northwest Territories. These projects are designed to create 11,000 construction jobs while making the North more secure and connected year-round.
Beyond barracks
A major part of this new budget is being treated as a massive housing initiative. The government launched a $3.7 billion program to build 7,500 new homes at 25 different military locations across Canada. This includes everything from apartment complexes in Esquimalt to new units at 12 Wing Shearwater that should be finished by late 2026.
The new Defence Industrial Strategy is also changing how the government buys its materials. The goal is to make sure 70% of defense contracts go to Canadian firms, helping to keep money and jobs at home. This shift toward a build-partner-buy framework will likely break down the old barriers between the government and the private construction sector.
“Atlantic Canada has always punched above its weight when it comes to defending Canada, at home and abroad,” said The Hon. Sean Fraser, Minister of Justice and Attorney General of Canada. “Canada is making the kind of investment our military needs…That means good jobs, growing industries, and a defence sector that continues to lead. I’m proud of the men and women who serve, and of the communities here that stand behind them.”
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