The federal government is awarding Canadian company MDA Space MDA-T a $32-million contract to build three remotely operated telescopes across the country, which Canada’s military will use to surveil space and defend critical assets such as satellites.
Delivery of the three sensor sites – in Alberta, Manitoba and New Brunswick – is expected by June, 2028, in line with the original dates outlined by the federal government’s Defence Capabilities Blueprint for the Surveillance of Space 2 project.
Secretary of State for Defence Procurement Stephen Fuhr made the announcement at MDA’s offices in Richmond, B.C., Wednesday. The ground-based sites will be a first for Canada as space observation is something the country has traditionally done from space, he said.
“Canada really is emerging as a little powerhouse in space,” he said in an interview.
The government’s spending is in line with its Defence Industrial Strategy, which it released in February and used to highlight space as one of ten key sovereign capabilities it’s eager to invest in. In 2023, Canada’s space sector contributed $3.4-billion to the country’s gross domestic product, according to a federal government report.
Globally, the space economy is expected to nearly triple to US$1.8-trillion by 2035, according to a 2025 report by Royal Bank of Canada titled A Higher Orbit. This means Canada has the opportunity to grow its domestic space industry four-fold to $21-billion in the next 10 years, if it can attract $12-billion in public and private capital, RBC writes.
The telescopes, built by MDA with help from local construction companies, will be remotely operated by the Canadian Armed Forces to collect data and monitor threats to Canadian space infrastructure, such as space junk or debris. The sites were chosen to spread operations across the country and prioritize areas with low light pollution.
The multiyear contract, which includes three years of in-service support ending in June, 2031, is expected to create or support around 80 jobs a year and contribute roughly $9-million to Canada’s GDP annually for the next six years.
After the end of in-service support in 2031, Canada has the discretion to exercise two one-year option periods for further support as needed.
The establishment of the three sensor sites will contribute to Canada’s security, as well as its role in the North American Aerospace Defence Command alongside the United States. The telescopes will also add value to Canada’s contributions as a member of the multinational force called Operation Olympic Defender, which seeks to improve space domain awareness across an alliance also made up of Australia, Britain, France, Germany, New Zealand and the U.S.
This contract is the first phase of the Surveillance of Space 2 project, meant to enable the Royal Canadian Air Force to continue its deep space surveillance, Mr. Fuhr said. A second phase will come later in the form of another contract, this time to renew or replace Canada’s space-based observation, which is currently done by Sapphire, the country’s first dedicated military space surveillance satellite also made by MDA.