The federal government, in collaboration with Telus, has unveiled a new initiative to establish a cluster of data centres in Vancouver and Kamloops. The AI Minister, Evan Solomon, highlighted the significance of this project in enhancing Canada’s computing capacity and promoting competitiveness in the global AI economy. Telus is set to expand its Kamloops facility and build two new data centres in Vancouver through Ottawa’s “Enabling large-scale sovereign AI data centres” program.
Solomon emphasized the aim of fostering domestic innovation and ensuring Canadian data sovereignty and economic advantage. Telus plans to launch the Kamloops and the initial Vancouver projects, located at the former Hootsuite headquarters in Mount Pleasant, later this year, with a second facility at 150 West Georgia Street scheduled for 2029. The project is projected to start with an 85-megawatt power capacity, scaling up to 150 megawatts by 2032.
Telus CEO, Darren Entwistle, highlighted the environmentally friendly aspects of the project, mentioning that the facilities will operate on 98% clean hydro power and recycle waste energy to heat 150,000 homes. Additionally, the data centres are expected to use 90% less water than traditional ones, with plans to integrate recycled water from B.C. Place stadium.
The initiative has received support from the B.C. government, which recently introduced its own AI data centre power policy. The policy aims to allocate 400 megawatts of electricity over two years to companies that prioritize data sovereignty, environmental advantages, and First Nations involvement. The City of Vancouver and Mayor Ken Sim have also expressed their endorsement for the project, describing the data centres as “world-class facilities.”
However, while the proposal has garnered praise from political leaders, it has sparked controversy regarding the construction of new data centres in B.C. Opposition to a planned facility in Nanaimo has emerged due to concerns about water usage. Green Party Leader Emily Lowan criticized the approach as a “build-first regulate-later model” and called for a halt on new data centres until stricter regulations and environmental policies are in place.
The debate surrounding data centre operations, particularly their power and water consumption, has become a topic of contention globally. As tech companies expand to accommodate the increasing demand for AI capabilities, concerns over environmental impact persist. Studies have shown the substantial water usage associated with data centres, prompting calls for more comprehensive assessments and regulations in the sector.