The Globe and Mail reports: It is known as “Camelot,” and it is believed to be among the most expensive government buildings Canada has ever built.

Next year, the analysts, hackers and linguists who form the heart of Communications Security Establishment Canada are expected to move from their crumbling old campus in Ottawa to a gleaming new, $1-billion headquarters.

It is the physical manifestation of just how far the agency has come since Sept. 11, 2001. Before those attacks, it was known as Canada’s other spy agency – an organization created to crack Communist codes more than seven decades ago, but rendered rudderless after the collapse of the Soviet Union. The agency’s biggest victory of the 1990s, insiders say, was its behind-the-scenes role in the seizure of a Spanish trawler during the Turbot Wars, a 1995 fishing dispute off the Grand Banks of Newfoundland.

But now, where it once focused on vacuuming up Russian radio signals from Arctic bases, its surveillance reach is global: Its leaders now speak of “mastering the Internet” from desktops in Ottawa. In 1999, it had a shrinking budget of $100-million a year and a staff of about 900. Today, CSEC (pronounced like “seasick” ever since “Canada” was appended to the CSE brand) has evolved into a different machine: a deeply complex, deep-pocketed spying juggernaut that has seen its budget balloon to almost half a billion dollars and its ranks rise to more than 2,100 staff.

Canadian taxpayers spent $300-million a year on the nation’s two intelligence agencies before the attacks of Sept. 11, but the bill for spying is now coming in at more than $1-billion. That’s because the Canadian Security Intelligence Service has also been bulked up into a $535-million-a-year agency, up from $180-million in 1999. [Continue reading…]