Why Canada Should Be on Every Site Selector’s Radar

Site selection plays a critical role in business expansion, ensuring companies find the right location that aligns with their operational, financial, and workforce needs. In the United States, site selection is a well-established industry, with businesses leveraging economic incentives, infrastructure, and workforce availability to drive decision-making. In Canada, however, the practice of strategic site selection remains underutilized by multinational corporations, despite the country’s compelling advantages. 

“Canada is poised to be a global leader in clean energy production, and our commitment to sustainability makes this country an ideal location for businesses looking for reliable, low-cost energy solutions.” 
– Jonathan Wilkinson, Canada’s Minister of Natural Resources 

For American multinationals with an existing presence in Canada, expanding further north offers a wealth of untapped opportunities. From abundant natural resources and affordable land to a highly skilled workforce and competitive cost structures, Canada presents a strong case for investment. Still, many companies default to expanding within the U.S. simply because of a lack of awareness of the incentives and benefits Canada provides.  

This blog highlights Canada’s competitive advantages for site selection, including reliable clean energy options, affordable land, a highly skilled workforce, and attractive funding incentives, positioning it as a prime destination for American multinational expansion. 

Key Considerations for Site Selection in Canada 

When evaluating expansion opportunities, site selectors typically assess factors such as energy infrastructure, workforce availability, tax incentives, and land costs. Canada not only meets these criteria but often exceeds expectations in ways that can provide long-term value for multinationals. 

1. Energy and Utility Infrastructure 

One of Canada’s greatest strengths in site selection is its access to reliable and sustainable energy. Canada as a country is a global leader in renewable energy production, with vast hydroelectric, wind, and solar power resources. Provinces such as Alberta, Quebec, and British Columbia offer some of the lowest electricity costs in North America, making them attractive for energy-intensive industries such as manufacturing and data centers. 

Behind-the-Fence Energy Options 

An increasingly attractive option for businesses seeking energy security and cost savings is the implementation of behind-the-fence (BTF) energy solutions. These private energy generation systems, such as on-site solar, cogeneration (combined heat and power), and small-scale wind farms, allow companies to produce electricity directly at their facilities, reducing reliance on the public grid.  

BTF solutions offer several advantages, including increased energy reliability, lower operating costs, and greater control over sustainability initiatives. In Canada, various government programs and incentives support businesses in adopting BTF energy projects, ensuring that companies experience both economic and environmental gains.  

As industries continue to prioritize resilience and carbon reduction, BTF energy solutions will play a pivotal role in site selection decisions. For businesses considering this option, programs such as the Green Industrial Facilities and Manufacturing Program (GIFMP) can provide valuable financial support. 

2. Land Availability and Cost 

Compared to many urban centers in the United States, Canada offers significant cost advantages in land acquisition and development. With vast geographic space and well-developed infrastructure in both urban and rural regions, businesses have the flexibility to select sites that align with their operational needs. Industrial parks and dedicated economic zones provide additional benefits, such as ready-to-build sites with pre-approved zoning that reduce the time and cost of project execution. 

For example, Alberta’s Industrial Heartland, one of Canada’s largest hydrocarbon processing regions, offers pre-zoned, development-ready land with access to major transportation corridors, utilities, and tax incentives. Businesses that establish operations there can benefit from lower land costs compared to U.S. industrial hubs while leveraging Alberta’s rich energy resources and workforce.  

3. Canada’s Highly Skilled Workforce 

Canada is home to a deep and diverse talent pool, with world-class educational institutions producing highly skilled graduates in fields such as technology, engineering, and advanced manufacturing. Immigration policies also play a crucial role in workforce development, as Canada actively attracts global talent through streamlined visa programs and work permits. Cities like Toronto, Waterloo, Vancouver, and Montreal have become innovation hubs, offering access to top-tier talent in AI, life sciences, and clean technology. 

“Our government continues to invest in skills training and workforce development to ensure that businesses expanding in Canada have access to the top talent they need to thrive.” 
— Randy Boissonnault, Canada’s Former Minister of Employment, Workforce Development and Official Languages 

4. Competitive Cost of Operations and Business Incentives 

Another major advantage Canada offers is its favorable tax credits and economic government funding incentives. Each province provides various tax credits, grants, loans, and funding opportunities to encourage business investment.  

For example, federal and provincial tax incentives in Canada are competitive with U.S. rates, and provinces like Alberta and Ontario offer taxes and government funding programs that include: 

• The Scientific Research and Experimental Development (SR&ED) Tax Credit: This federal program provides tax incentives for businesses conducting research and development (R&D) in Canada, allowing companies to recover a portion of their R&D expenses. 

• Strategic Innovation Fund (SIF): This program provides direct funding for large-scale investments that drive innovation, job creation, and economic growth. 

• Canada Infrastructure Program: Businesses expanding in designated zones can access funding for infrastructure projects, including site development and energy-efficient building upgrades. 

• Industrial Research Assistance Program (IRAP): This supports small and medium-sized enterprises (SMEs) with funding for research and development activities. 

• Clean Energy Investment Tax Credit: This provides incentives for businesses investing in renewable energy projects, enhancing sustainability while reducing operational costs.  

• Regional Development Agencies (RDAs): Organizations, such the Federal Economic Development Agency of Ontario. Atlantic Canada Opportunities Agency, PrairiesCan, Canada Economic Development for Quebec Regions (CED), etc.  

The Growing Case for Site Selection in Canada 

Despite its advantages, Canada remains an overlooked destination for site selection and expansion. By increasing awareness of Canada’s business-friendly environment, abundant resources, and robust infrastructure, American multinationals can make more informed decisions about their next expansion project.  

Whether it’s securing affordable land, leveraging clean energy, or tapping into a top-tier talent pool, Canada has the resources and policies in place to support sustainable business growth. 

For businesses looking to expand their footprint and maximize operational efficiency, now is the time to take a closer look at what Canada has to offer. The opportunity is here. The question is: will multinationals seize it? 

Alberta: A Strategic Investment Destination for Data Centers 

To dive deeper into the strategic advantages of expanding into Canada, we invite you to attend an exclusive webinar hosted by Ryan in partnership with Invest Alberta and AESO next week on Monday, February 10.  

This upcoming webinar will feature a keynote address by Alberta’s Minister of Technology and Innovation, Nate Glubish, who will share insights on why Alberta is a prime site selection destination for data center investments in particular.  

Gain valuable knowledge about funding opportunities, tax incentives, and infrastructure advantages that can drive your business growth. Register now to explore how Canada can be the next strategic site selection for your organization.