SpaceX Selected to Launch Satellites for Canada’s $2.3B Arctic Defense Deal

SpaceX will launch dozens of new satellites into orbit after Telesat secured a landmark $2.3 billion CAD military communications contract with the Canadian government. The 15-year agreement with Canada’s Defence Investment Agency will provide high-speed, secure Military Ka-band satellite coverage across the country’s northernmost polar regions starting in early 2028. Option periods included in the contract could push the total value to $2.7 billion.

To meet the strict demands of the military project, Telesat is expanding its planned Lightspeed low-Earth orbit constellation from 156 to 225 satellites. Montreal-based MDA Space will manufacture the 69 additional satellites, while SpaceX has been chosen to deliver them to space using its Falcon 9 rockets.

The added orbital capacity expands network coverage between 65 and 90 degrees North latitude. That ensures military personnel operating in remote Arctic conditions will have high-speed, low-latency connectivity to coordinate missions and communicate securely.

Tracking these massive aerospace deals from my desk in British Columbia, it is easy to forget how vital basic communication becomes in freezing regions where standard infrastructure simply cannot survive.

Telesat President and CEO Dan Goldberg said the deal ensures the Canadian Armed Forces will get secure, resilient connectivity years earlier than planned while giving taxpayers great value for money.

The new deal builds on heavy federal and provincial backing for Telesat’s constellation over the past several years. Ottawa previously committed $1.44 billion in loans and equity to support the Lightspeed network, along with $214 million from the Strategic Innovation Fund. Provincial governments in Quebec and Ontario also contributed $400 million and $109 million respectively to lock in regional engineering and manufacturing jobs. Total investment in the expanded 225-satellite network is expected to reach $7 billion.