Vancouver and Kamloops are set to become a hub for a new cluster of data centers through a partnership between Telus and the federal government. The initiative, unveiled by AI Minister Evan Solomon in Vancouver, aims to bolster Canada’s “sovereign compute capacity” to enhance competitiveness in the global AI economy. This endeavor includes expanding Telus’s current Kamloops facility and establishing two new data centers in Vancouver under Ottawa’s Enabling large-scale sovereign AI data centers initiative.
“We are actively working to enhance sovereign AI capacity in Canada so that Canadian innovators, researchers, and businesses have access to the necessary computational resources while safeguarding Canadian data, intellectual property, and economic interests within the country,” stated Solomon.
Telus disclosed that the Kamloops project and the initial Vancouver facility, situated at the former Hootsuite headquarters in Mount Pleasant, are anticipated to launch later this year. A second Vancouver facility at 150 West Georgia Street is scheduled for 2029. The project will commence with an 85-megawatt power consumption, with plans to scale up to 150 megawatts by 2032.
Telus’s President and CEO, Darren Entwistle, emphasized the environmental sustainability of the project. Telus highlighted that the data centers will operate on 98% clean hydro power and recycle waste energy to heat 150,000 homes. Moreover, the projects are projected to use 90% less water compared to traditional data centers, with plans to incorporate recycled water from B.C. Place stadium.
Entwistle expressed, “We are showcasing Canada’s commitment to lead the AI revolution with robust technological capabilities and exceptional climate stewardship.”
The project has received support from the B.C. government, which introduced its own AI data center power policy in January. This policy mandates companies to compete for a limited electricity allotment of 400 megawatts for the next two years, favoring projects that ensure data sovereignty, environmental advantages, and Indigenous participation.
The City of Vancouver and Mayor Ken Sim also endorsed the proposal, hailing the data centers as “world-class facilities.”
While political leaders praised the new project, plans for a data center in Nanaimo have sparked local opposition due to concerns about 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 stricter regulations and environmental policies are in place.
Lowan expressed skepticism regarding Telus’s environmental assertions about the proposed data centers, emphasizing the need for comprehensive environmental impact assessments for such fast-tracked projects.
The power and water usage of data centers have become contentious issues, with tech companies expanding operations to meet the rising demand for AI capabilities. Studies have highlighted the significant water consumption of data centers globally, underscoring the importance of sustainable practices in the industry.
