Vancouver and Kamloops are set to become the hub of a fresh data center cluster through a new collaboration between Telus and the federal government. The initiative, unveiled by AI Minister Evan Solomon in Vancouver, aims to bolster Canada’s “sovereign compute capacity” and enhance local competitiveness in the global AI market among commercial and academic entities.
The plan entails expanding Telus’s current facility in Kamloops and developing two additional data centers in Vancouver under Ottawa’s Enabling Large-Scale Sovereign AI Data Centres initiative. Solomon emphasized the significance of fostering domestic AI capabilities to ensure Canadian innovators, researchers, and businesses have access to necessary computing resources while safeguarding Canadian data, intellectual property, and economic interests.
Telus disclosed that the Kamloops project and the initial Vancouver facility, situated at the former Hootsuite headquarters in Mount Pleasant, are scheduled to commence operations later this year. A second site at 150 West Georgia Street is slated for completion in 2029. The project will kick off with an 85-megawatt power usage, with plans to scale up to 150 megawatts by 2032.
Telus CEO Darren Entwistle lauded the initiative as an environmentally friendly endeavor, highlighting that the facilities will rely on 98% clean hydro power and recycle waste energy to heat 150,000 homes. Additionally, these data centers are projected to consume 90% less water compared to traditional facilities, with potential plans to integrate recycled water from B.C. Place stadium.
The B.C. government has thrown its support behind the project, aligning with its own AI data center power policy introduced in January. The policy mandates companies to compete for a maximum of 400 megawatts of electricity over the next two years, prioritizing projects promoting data sovereignty, environmental benefits, and Indigenous involvement.
While the proposal garnered praise from political leaders, it has sparked controversy over the establishment of a new data center in Nanaimo, with concerns raised over excessive water consumption. B.C. Green Party Leader Emily Lowan criticized the approach as a “build-first regulate-later model” and advocated for a moratorium on new data centers until stringent regulations and eco-friendly policies are in place.
The discourse around data center sustainability and resource utilization has gained traction globally as tech companies strive to meet the escalating power demands of AI technologies. Studies have shown the substantial water consumption by data centers, emphasizing the necessity for a balanced approach to expansion while considering environmental impacts and community concerns.