Vancouver and Kamloops are set to become the sites of a new cluster of data centers through a collaboration between the federal government and Telus. AI Minister Evan Solomon, speaking in Vancouver, emphasized the significance of this project in enhancing Canada’s “sovereign compute capacity” and supporting local competitiveness in the global AI market. The initiative will involve expanding Telus’s current facility in Kamloops and constructing two additional data centers in Vancouver as part of Ottawa’s Enabling large-scale sovereign AI data centers program.
According to Solomon, the goal is to establish a robust AI infrastructure within Canadian borders to ensure that Canadian innovators, researchers, and businesses have the necessary computing resources while safeguarding Canadian data, intellectual property, and economic interests. Telus has announced that the Kamloops project and the first Vancouver facility, located at the former Hootsuite headquarters in Mount Pleasant, are expected to be operational later this year, with a second Vancouver site planned for 2029. The project will initially draw 85 megawatts of power, with plans to scale up to 150 megawatts by 2032.
Telus President and CEO Darren Entwistle highlighted the environmentally friendly aspects of the project, noting that the facilities will be powered by 98% clean hydroelectricity and will recycle waste energy to heat 150,000 homes. The data centers are expected to use 90% less water compared to traditional centers, with plans to integrate recycled water from B.C. Place stadium. The B.C. government has endorsed the project, following the implementation of its own AI data center power policy earlier this year.
The B.C. policy stipulates that companies must compete for a limited electricity allocation of 400 megawatts over the next two years, with a preference for projects promoting data sovereignty, environmental sustainability, and Indigenous community involvement. The proposal has gained support from various political and local leaders, with the City of Vancouver and Mayor Ken Sim praising the data centers as “world-class facilities.”
Despite the positive reception, the plan for new data centers in B.C. has sparked debates. Opposition to a proposed facility in Nanaimo has raised concerns about water consumption, with critics accusing policymakers of prioritizing construction over regulatory measures. Green Party Leader Emily Lowan called for a halt on new data center developments until comprehensive regulations and environmental policies are established, questioning the speed at which such projects bypass public scrutiny.
The issue of data center energy and water usage has emerged as a contentious topic globally, with increasing demand driven by AI technologies. Studies have shown the significant water consumption associated with data centers, highlighting the need for sustainable practices in expanding technological infrastructure.
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