BEIJING, CHINA – JANUARY 16: Canada’s Prime Minister Mark Carney (C) arrives for a meeting with Chinese President Xi Jinping at the Great Hall of the People on January 16, 2026 in Beijing, China. (Photo by Vincent Thian – Pool/Getty Images)
Prime Minister Mark Carney has announced an ambitious new strategy to strengthen Canada’s sovereignty, security and economic development in the Arctic and North, backed by more than C$40 billion in investments. The plan, titled “Defend, Build and Transform the North,” combines major defence spending with infrastructure projects designed to unlock the region’s long-term economic potential.
At the heart of the initiative is a C$32 billion investment in military infrastructure across northern Canada. The funding will modernize key Forward Operating Locations in Yellowknife, Inuvik and Iqaluit, as well as 5 Wing Goose Bay in Labrador. Planned upgrades include improved airfields, new hangars, fuel and ammunition storage facilities, accommodations, warehousing and communications infrastructure. According to the government, the investments will enhance the Canadian Armed Forces’ ability to operate independently in the Arctic and respond more effectively to emerging security challenges.
The plan also includes C$2.67 billion for a new network of Northern Operational Support Hubs and Nodes located in Whitehorse, Resolute, Cambridge Bay and Rankin Inlet. These facilities are intended to enable rapid year-round deployments and improve Canada’s ability to project presence across remote Arctic regions. Additional funding will support upgrades to northern airports, including improvements in Inuvik and Rankin Inlet, allowing larger aircraft to operate safely and improving transportation links for both military and civilian users.
Beyond defence, the government is advancing several major nation-building projects through the Major Projects Office, including the Mackenzie Valley Highway, the Grays Bay Road and Port project, and the Arctic Economic and Security Corridor. These initiatives aim to improve connectivity, support Indigenous and remote communities, and facilitate responsible resource development across the North.
Announcing the plan in Yellowknife, Carney described the Arctic as central to Canada’s future prosperity and security. The initiative reflects growing international attention on the region amid climate change, evolving trade routes and increasing geopolitical competition. Through a combination of defence modernization and infrastructure investment, Ottawa aims to reinforce Canada’s presence in the North while creating new opportunities for economic growth and community development.