The federal government recently launched a new national AI strategy. This arrives just as Canada confronts a massive wave of highly powerful data centres. Public sentiment is souring on the impacts of this new technology. You probably operate online every day without thinking about where your data lives. That reality is changing fast.
New research from York University reveals a dramatic shift in the Canadian data centre landscape. Developers are building facilities with 10 times the capacity of older models. This rapid growth drives up concerns about the land, water and energy these buildings consume.
Right now, Canada only has five hyperscale data centres. Two are in British Columbia. The others are in Ontario, Quebec and right here in New Brunswick. Another 96 facilities are currently in development across the country.

The Shift to Hyperscale
Traditional data centres sit in large cities to serve clients quickly. They usually have a capacity of about five megawatts. Hyperscalers power the AI boom and use about 100 megawatts of capacity. These massive facilities train AI models and require vast amounts of cheap land, energy and water.
Lyndsey Rolheiser is an urban economist and assistant professor at the Schulich School of Business at York University. She notes that developers are pushing these facilities into the outskirts of our provinces.
Active data centres currently have a combined capacity of 1.6 gigawatts. Proposed projects will inflate that number to 13.2 gigawatts.
Alberta Takes the Lead
Alberta is the epicentre of this new development. The province offers available energy, streamlined regulations and a welcoming government. If developers complete all proposed projects, Alberta will host 90 per cent of the data centres in Canada.
Developers previously favoured provinces with low emission electricity. Now, legislation in Quebec, British Columbia and Ontario constrains grid access. Companies prioritize finding any available power. Alberta provides a deregulated electricity system and cheap natural gas powered electricity.
Growing Public Resistance
The booming sector faces growing suspicion. A recent Angus Reid poll shows 68 per cent of respondents oppose a large AI data centre in their neighbourhood. If you live in a rural area, you share this resistance with 73 per cent of rural Canadians.
Residents worry about emissions, noise and years of construction. In Olds, Alberta, residents recently voiced their concerns about a proposed facility.
“It’s unacceptable to endure the possibility of a natural gas power generation plant and a data centre that is going to be the largest in Canada, to be proposed here,” said resident Bek MacIntosh. “It’s absolutely unacceptable and not something we’re willing to tolerate.”
In Vancouver, hundreds of people marched to protest two planned AI data centres. They raised concerns about water and energy usage during regular city water restrictions.
“There’s not really a good spot for a data centre,” said organizer Torin LaRocque. “No matter where we put data centres, especially the AI ones, the environmental impacts are going to be significant.”
Industry Response
Data centre developers are finding ways to increase efficiency. Some companies invest in independent power generation. Others use closed loop cooling systems to save water.
“We recognize the challenges people are raising and we’re investing to solve them,” said Matt Milton, president of Microsoft Canada. “We will pay our share for energy and we will ensure that electricity rates do not go up for Canadians.”
Todd Coleman is the founder and CEO of eStruxture. His company is building its third data centre in Alberta. He believes modern facilities mitigate noise and resource problems.
“Whether it’s misinformation or even the right information, the questions just haven’t been answered,” Coleman said. “It’s on all of us to get out there and take their questions, address them openly, make sure we’re working towards solutions.”
Read the full original report on CBC News.
Frequently Asked Questions
What is a hyperscale data centre?
A hyperscale data centre is a massive facility designed to support robust applications like artificial intelligence. They use significantly more power than traditional data centres and require around 100 megawatts of capacity.
Does New Brunswick have a hyperscale data centre?
Yes. New Brunswick is home to one of the five currently active hyperscale data centres in Canada.
Why are so many new data centres going to Alberta?
Alberta offers a deregulated electricity system, abundant natural gas powered electricity and a provincial government that speeds up regulatory approvals for tech developers.
Why are people protesting these facilities?
Residents express concerns about the massive amounts of water and electricity these facilities consume. They also worry about noise pollution, emissions and the impact of lengthy construction on their communities.




Maybe we should look at Manitoba’s take on these massive AI centres….
Southern NB is in a serious drought situation and the proposed Lorneville data Centro is not welcome. I have yet to hear how the owners are going to handle the forever toxic chemicals flushed regularly from the centre. I strongly oppose building a project that takes from our community,