AI data centres are becoming truly critical infrastructure, and because they require so much energy, Canada is well positioned to be a competitive player in the AI investment race with its capacity for clean, renewable energy. Compared to other jurisdictions that rely much more heavily on fossil fuels, Canada provides an undeniable benefit as one of the world’s lowest-emitting power systems with a cold climate that reduces cooling demand. However, that does not mean there wouldn’t be immense strain on current infrastructure. Additionally, provinces are not coordinating enough on their approaches to this investment opportunity, balanced with their energy needs; some provinces are tightening their hydro purses, whereas others are doing all they can to sweeten the deal for data centre investors.
Alonso Muñoz Sanchez, with specific action items, calls for a coordinated federal approach that aligns data centre projects with Canada’s net-zero energy transition, developed in collaboration with provincial governments, utilities companies, industry and First Nations. Federal guidance should define the criteria for sustainable AI growth and prevent default reliance on fossil fuels.
