The federal government’s new national AI strategy, unveiled this week, comes as the country faces a new wave of high-performance data centers and public sentiment about the impact of new technology could sour.
Data centers have long been on the radar for many Canadians, but that’s about to change.
A new study from the University of York points to dramatic changes in the nation’s data centers. Data centers currently under construction will have 10 times the capacity of their predecessors, raising concerns about the land, water and energy they will consume.
Alberta is at its epicenter, with available energy, streamlined regulations and generous government arms.
Research shows rapid growth in this field. The total active data center capacity is 1.6 gigawatts, but all proposed projects would increase that number to 13.2 gigawatts.
Meanwhile, public suspicions are increasing.
A new poll by Angus Reid finds that 68 per cent of respondents oppose large-scale AI data centers being built within a few blocks of their homes, with those living in rural Canada being slightly more opposed than those living in urban areas (73 per cent). (67 percent).
This week, the state of Florida filed a lawsuit. against While OpenAI claims ChatGPT is not secure, the White House is tightening regulations in this area after previously relaxing regulations. even the pope recently He talked about the dangers of AI.
Federal AI Minister Evan Solomon is pushing back against both staunch opponents and those who overhype the technology. emphasize The need to balance expansion with security, fairness, and pragmatism.
rapid growth
Data centers are common in most cities and often have a capacity of around 5 megawatts. More advanced data centers, known as “hyperscalers” that are driving the AI boom, can use around 100 megawatts of capacity.
There are currently only five hyperscale data centers in the country, two in British Columbia and the others in Ontario, Quebec, and New Brunswick.
A further 96 facilities have been announced or are under construction, according to research by York University.
Traditional data centers are often located in large cities, allowing them to quickly serve clients such as retailers and businesses that require low latency.
However, since hyperscalers are often used to train AI models, they can also be deployed further apart.
“They basically…need a lot of cheap land, so you can imagine that they’re going to be far away from urban centers. They need access to energy and water, so this is kind of pushing them to the outskirts of the state,” said Lindsey Rolheiser, an urban economist and assistant professor at York University’s Schulich School of Management.
Not only are data centers moving to more rural areas, but many projects are concentrating on Alberta for its cheap land and abundant energy.
In fact, according to Rolheiser’s latest research, about 41 per cent of active data centers are in Ontario, compared to only about 10 per cent in Alberta. This study is based on proprietary data and is still subject to peer review, which will be reviewed by independent experts.
But looking to the future, Rolheiser said those numbers will change “dramatically.”
alberta is calling
Once all proposed or under construction projects are completed, Alberta will be home to 90 per cent of the country’s data centres.
While not all proposed projects will be built, the numbers signal a wave of interest in Alberta, as the province is actively working to grow the sector by offering a deregulated power system, cheap natural gas-fired power, and a “concierge team” of AI data centers to expedite regulatory approvals and welcome investors and operators.
Previously, data center developers preferred provinces that offered low-emission power, but as Quebec, British Columbia, and Ontario introduced legislation restricting access to the power grid, finding every type of power available is now a priority.
“The most dramatic finding is that data centers are becoming more difficult to locate in places where energy generation is relatively cheap and where renewable generation is increasing,” Rolheiser said.
lots of concerns
The booming data center sector has not always been welcomed, and despite promises of jobs and tax dollars flowing into local communities, suspicions are mounting.
At a public unveiling of the proposed data center last month in a hotel conference room in Olds, about 90 kilometers north of Calgary, residents voiced a number of concerns to the provincial utility regulator.
“It’s unacceptable to endure the possibility of Canada’s largest natural gas power plant and data center being proposed here. It’s absolutely unacceptable and it’s not something we want to tolerate,” resident Bec McIntosh said.
The proposed Olds data center complex would ultimately look like this: 10 times bigger Other facilities currently operating in Canada.
Other issues being raised include emissions and noise from the proposed facility and its age, which has some residents ready to put their homes up for sale, while some businesses are “considering moving out of town,” Jeff Davidson said.
Many residents are acutely aware of the lack of information as they struggle to directly answer questions about the impact on their town, such as noise levels, water usage, traffic and property values.
“There was a very vague conversation at the town council meeting. There was no advance notice, there was no consultation,” Janae Johnson said.
Hundreds of people marched in Vancouver at the weekend protests The two planned AI data centers have raised concerns about how much water and energy the facilities could use, especially as the city faces periodic water restrictions.
Organizer Torin Larocque said: “There are not many suitable locations for data centers. No matter where you put a data center, especially an AI center, the environmental impact will be significant.”
Water cooling has raised concerns, especially in the western states of the United States. limited amount of water. Lake Tahoe’s power company needed to find a new source of power. power supplier The plan is to divert the city’s electricity to data centers.
Impact reduction
Data center developers are increasingly looking for ways to use water more efficiently and using closed-loop systems similar to car radiators.
Some companies are investing in off-grid power generation to avoid straining the power grid. Some people choose to pay to avoid increasing utility bills in nearby communities.
“We recognize the challenges people are posing and are investing in solving them,” said Matt Milton, president of Microsoft Canada.
“We’re going to pay our share of the energy bill and make sure Canadians’ electricity bills don’t go up,” Milton said. He also said Microsoft is using new technology to reduce water usage.
Alberta is a “province of choice” with many advantages, including a fiber-optic network, a skilled workforce and the provincial government’s open-for-business approach, said Todd Coleman, founder and CEO of Montreal-based company eStruxture. The company is building its third data center in the province in a rural area just north of Calgary.
Coleman said the latest facility will be Alberta’s first 90-megawatt “true hyperscale large-scale data center,” and the company is already considering developing a fourth project in the province.
Some data centers use too much water and power and make too much noise, but modern data centers can alleviate those problems, Coleman said. His facility is clean, quiet, and uses no water except for “sinks and toilets.” Instead, it has a closed-loop glycol cooling system.
He said the industry was often painted with a “broad brush” but it was still worth continuing to listen to public concerns.
“We must continue to work together,” he said. “Whether it’s misinformation or correct information, the questions remain unanswered. It’s up to all of us to go out and accept the questions, address them openly, and make sure we work toward solutions.”
The Angus Reid poll was surveyed online between May 7th and 11th among 1,803 adults. of public opinion poll The margin of error was +/- 2 percentage points 19 out of 20 times.
