Canada to Invest $1.2 Billion in Halifax Naval Infrastructure as Part of Defence Expansion

Minister of National Defence David McGuinty has highlighted Atlantic Canada’s strategic role in Canada’s expanding defence plans, as the federal government announced major investments to modernize military infrastructure.

Speaking in Halifax on Thursday alongside Prime Minister Mark Carney, McGuinty confirmed $1.2 billion will be spent upgrading power and municipal services at CFB Halifax Dockyard and Stadacona. The modernization is intended to prepare the facilities for upcoming acquisitions, including 12 new submarines.

“We have to get ready for all the investments that will follow in this area,” McGuinty said. “We’re acquiring 12 submarines. We need to make sure we have the ability to receive those subs.”

The announcement comes as the federal government reported spending over $60 billion on defence in 2025, meeting its NATO target of two per cent of GDP. McGuinty emphasized the unprecedented pace of modernization: “We made a decision a year ago that we had to basically reboot our armed forces. This region has a long history with the armed forces. We’re building on that tradition.”

Additional investments include $82.5 million to purchase Halifax Gate in Dartmouth, supporting Royal Canadian Navy operations, and over $1 billion for upgrades at CFB Gagetown in New Brunswick. McGuinty also noted efforts to expand the defence industrial base, citing 600 companies in the sector and ongoing trade and defence agreements to strengthen Canada’s capabilities.

“We understand the role Atlantic Canada and Halifax can play in the defence industrial strategy,” he said. “We need to deal with the world as it now is. We need to be prepared.”

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