Canada Marks Historic Milestone with First Investment to Advance Arctic Sovereignty and Defence Capabilities

Dec 10, 2025

Ottawa, Canada – December 10, 2025 — Invest Ottawa celebrates a landmark moment for Canada’s defence, space, and innovation sectors following the first strategic investment by Canada’s Defence Investment Agency (DIA) – a newly formed Government of Canada agency aimed at modernizing defence procurement and accelerating the delivery of critical military capabilities.

This milestone first investment includes a $2.92 million partnership contract with Telesat and MDA Space to deliver next-generation Arctic military satellite communications for the Enhanced Satellite Communications Project – Polar (ESCP-P).

The multi-billion-dollar ESCP-P initiative sets out to transform how Canada asserts and protects Arctic sovereignty, strengthens NORAD and NATO operations, and equips the Canadian Armed Forces with secure, resilient, and modern MILSATCOM (Military Satellite Communications) capabilities essential for operations across remote and northern regions.

The announcement signals a new era in Canadian defence procurement, strengthening the country’s capacity to deliver sovereign capabilities, accelerate innovation and modernize operations in the North. It also reflects Canada’s commitment to deepening collaboration with NORAD, NATO and global allies.

A Strategic Partnership Built on Decades of Canadian Leadership

According to the official Telesat release, the agreement will enable the development of a multi-frequency Arctic MILSATCOM architecture leveraging more than 55 years of Telesat engineering excellence. This system will support Canada’s defence and security priorities in the North, modernizing communications infrastructure for the decades ahead.

In Telesat’s official release, Dan Goldberg, President and CEO, stated:

“For decades, Telesat has proudly supported the mission-critical connectivity needs of the Canadian Armed Forces. Along with MDA Space, we are honoured to be chosen as strategic partners in modernizing Canada’s defence capabilities and expanding secure, resilient communications infrastructure. We commend the government’s forward-thinking approach to defence procurement—one that harnesses industry expertise, innovation, and investment to accelerate deployment of a secure, multi-frequency architecture that strengthens Arctic security and safeguards Canadian sovereignty.”

The Government of Canada confirmed that ESCP-P will apply the Industrial and Technological Benefits (ITB) Policy, ensuring investment flows across Canada’s space and defence ecosystems, including small and medium-sized enterprises.

According to MDA Space’s official release, the company will serve as a mission partner drawing on more than five decades of space systems and robotics expertise and participation in more than 450 missions.

In MDA Space’s statement, CEO Mike Greenley noted:

“With this partnership, and in close collaboration with the Department of National Defence and Telesat, we are ready to deliver essential Arctic military satellite communications capabilities at the speed of innovation and operational relevance.”

A National Milestone Celebrated in Canada’s Capital

Sonya Shorey, President & CEO of Invest Ottawa and Area X.O., shared her reflections on the national significance of this investment:

“Yesterday marked an historic milestone for Canada’s defence, space, and innovation ecosystem. The DIA has made its first strategic investment. It is a powerful signal of Canada’s commitment to strengthening our sovereignty, advancing innovation, and equipping our Forces with the capabilities they need in the North.”

She further emphasized alignment with regional strategy:

“This bold, future-defining investment in homegrown companies and capabilities directly aligns with our evolving strategy for Canada’s Capital Region as a National Defence Innovation Hub serving our country, Forces and Allies.”

What This Means for Ottawa’s Defence and Space Ecosystem

While the initiative is national in scope, it directly reflects strengths long established in the Ottawa–Gatineau region.

Telesat, headquartered in Ottawa with more than five decades of satellite engineering and Arctic communications expertise, is one of the region’s most significant space-technology anchors. MDA Space, headquartered in Ontario with operations across Canada, contributes national depth in robotics, satellite systems, and mission delivery capabilities.

Together, these homegrown companies highlight why Canada’s Capital Region has become a critical hub for defence, space and secure communications innovation.

The region is home to:

  • Deep space systems engineering and satellite communications expertise
  • A robust cluster of defence, aerospace, cybersecurity and dual-use technology firms
  • Four NATO DIANA Test Centres, including Invest Ottawa’s Area X.O
  • World-class research institutions and specialized R&D labs
  • A growing pipeline of talent across AI, autonomy, robotics, sensing and secure connectivity

These strengths position the region to benefit from:

  • Expanded activity in Canada’s space and defence sectors
  • Increased demand for highly skilled talent
  • New opportunities for SMEs through the ITB supply chain
  • Greater global visibility as a centre for sovereign defence and space innovation

This historic investment reinforces why Canada’s Capital Region is increasingly recognized as a capable of supporting major procurements and next-generation R&D that strengthens Canada’s sovereignty, readiness, and global leadership.

A Vision for Canada’s Future Defence Capabilities

Invest Ottawa commends the Government of Canada, the Defence Investment Agency, Telesat and MDA Space for their leadership and looks forward to supporting continued progress that will shape Canada’s defence and space landscape for decades to come.

  • Explore the Defence Innovation Strategy and Canada’s Defence Innovation Hub at: dihub.ca.

Media Contact

Lindsey Fair
Vice President, Marketing and Bayview Impact
Invest Ottawa & Bayview Yards
[email protected] | 613-857-7779


About Invest Ottawa

Invest Ottawa is the lead economic development agency for knowledge-based industries in Canada’s Capital Region, facilitating economic growth and job creation in Ottawa. Guided by a vision to help realize Ottawa’s full potential as a globally recognized, innovative, inclusive, and future-ready city, Invest Ottawa delivers venture development, global expansion and talent programs and services that catalyze the growth and success of entrepreneurs and firms. These include small business training, mentorship, acceleration for technology firms, foreign business and investment attraction, local business retention and expansion in targeted sectors, commercialization and marketing Ottawa’s diversified economy and high quality of life.

Invest Ottawa is also the manager of Bayview Yards, Ottawa’s innovation hub and one-stop business acceleration shop, and founder and operator of Area X.O, the R&D complex for next-gen smart mobility, autonomy and connectivity technologies. Since 2017, Invest Ottawa has delivered $3.7 billion in GDP impact, 29,343 jobs, and $622 million in government revenues.

 

 

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