Eyes on the Sky: Canada Expands Space Surveillance with New $32M Investment

As the strategic environment evolves and the boundaries of conflict extend beyond land, sea, and air, space is rapidly emerging as a critical domain for national security. For Canada, safeguarding that domain is no longer optional—it is essential.

In a move that underscores this reality, the Defence Investment Agency (DIA) has awarded a $32-million contract to MDA Space of Richmond, British Columbia, to deliver a ground-based optical capability for the Surveillance of Space 2 (SofS 2) project. The announcement, made by the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), signals a decisive step forward in Canada’s effort to strengthen space domain awareness while advancing its broader Defence Industrial Strategy.

At its core, the investment is about visibility—ensuring Canada can see, understand, and respond to activity in an increasingly contested orbital environment.

Building a Ground-Based Space Surveillance Network

By 2028, MDA Space will establish three remotely operated telescope sites across Alberta, Manitoba, and New Brunswick. These installations will provide persistent, reliable surveillance of objects in orbit, forming a critical component of Canada’s evolving space surveillance architecture.

The ground-based optical systems will operate in tandem with existing space-based sensors, creating a more resilient and comprehensive capability for monitoring space activity. This layered approach enhances Canada’s ability to detect, track, and characterize objects in orbit—whether they are satellites, debris, or potential threats.

Lieutenant-General Jamie Speiser-Blanchet, Commander of the Royal Canadian Air Force, emphasized the operational significance of the capability:

“The delivery of the ground-based optical capability represents a significant advancement in Canada’s ability to monitor and safeguard the space domain. These advanced telescopes will provide persistent, reliable, ground-based surveillance and will operate in tandem with our space-based sensors under Surveillance of Space 2. Space-based systems are vital to the daily lives of Canadians and to the success of joint missions with our allies. Enhancing our space awareness directly strengthens our commitments to NORAD and to our partners as we continue to ensure the security of Canadians.”

Space as Critical Infrastructure

The importance of space-based systems extends far beyond military operations. Everyday activities—from banking and communications to navigation, agriculture, and weather forecasting—depend on secure and reliable satellite infrastructure. Recognizing this, the Government of Canada is positioning space as a cornerstone of both national security and economic resilience.

The Honourable David J. McGuinty, Minister of National Defence, highlighted the broader implications of the project:

“Canada’s security and prosperity depend on our ability to understand and protect the space domain. The Surveillance of Space 2 project represents a major step forward in strengthening our sovereignty, modernizing our space capabilities, and safeguarding critical satellite infrastructure that Canadians rely on every day.”

Driving Economic Growth and Innovation

Beyond its strategic value, the contract is expected to deliver tangible economic benefits. The project will create or support close to 80 jobs annually and contribute approximately $9 million to Canada’s GDP each year over the next six years. It also reinforces Canada’s position within a rapidly expanding global space economy, projected to reach approximately $2 trillion by 2040. With Canada’s space sector already contributing an estimated $3.4 billion to GDP, investments like SofS 2 are designed to ensure Canadian companies remain competitive on the world stage.

The Honourable Jill McKnight, Minister of Veterans Affairs and Associate Minister of National Defence, pointed to the regional and industrial impact:

“Projects like Surveillance of Space 2 demonstrate how Canadian expertise, right here in British Columbia, pushes the boundaries of what we will achieve in space and defence. Supported by the Defence Investment Agency and guided by Canada’s Defence Industrial Strategy, this investment will both create highly skilled jobs in the region and will modernize Canada’s space capabilities for the challenges of tomorrow.”

A New Model for Defence Procurement

The Surveillance of Space 2 contract also reflects a shift in how Canada delivers defence capabilities. By leveraging streamlined processes and existing approval authorities, the DIA was able to move the procurement forward more quickly than under traditional models. This approach is central to the government’s broader effort to modernize defence procurement—reducing delays, centralizing expertise, and accelerating the delivery of mission-critical equipment to the Canadian Armed Forces.

The Honourable Stephen Fuhr underscored the dual focus on capability and industrial growth:

“Canada’s security depends on the space-based systems that enable everything from communications and navigation to weather forecasting and emergency response. Today’s contract award to MDA Space will deliver the capabilities the Canadian Armed Forces need while growing Canada’s world-class space sector and creating good-paying jobs. With the Defence Investment Agency and our Defence Industrial Strategy, we are streamlining procurements and building the sovereign capabilities that will ensure Canada remains a leader in this crucial domain.”

Strengthening Alliances Through Space Domain Awareness

Canada’s investment in space surveillance is not occurring in isolation. The capabilities delivered through SofS 2 will contribute directly to key international partnerships, including the North American Aerospace Defense Command (NORAD) and Multinational Force – Operation Olympic Defender. These alliances rely on shared data and coordinated awareness of the space domain to ensure collective security. By enhancing its own capabilities, Canada strengthens its role as a trusted partner in these networks.

Mike Greenley, Chief Executive Officer of MDA Space, reflected on the broader operational context:

“As space becomes more contested, congested and competitive, persistent surveillance and space domain awareness provide the Canadian Armed Forces and trusted allies with a better understanding of what is happening in a complex environment they can’t otherwise see. With decades of proven expertise providing defence and security, MDA Space is honoured to once again be selected as a trusted mission partner to Canada and to the Department of National Defence .”

A Generational Investment in Sovereignty

The Surveillance of Space 2 project sits within a larger transformation of Canada’s defence ecosystem. Through the Defence Industrial Strategy and the establishment of the Defence Investment Agency, the government is aligning long-term defence spending with domestic industrial capability.

The goal is clear: build sovereign capabilities, strengthen supply chains, create high-value jobs, and ensure the Canadian Armed Forces are equipped to meet emerging threats.

As space becomes an increasingly contested and indispensable domain, Canada’s latest investment signals a long-term commitment—not only to protecting what lies above, but to securing the prosperity and safety that depend on it.