A proposed data centre in Saint John has sparked a debate over power grid stability and economic growth. The project, planned for the Lorneville area, promises massive tax revenue for the city. It also requires a massive amount of electricity.

According to a recent report from CTV News, Beacon Data Centers and VoltaGrid are partnering to build the facility. The site needs 390 megawatts of power to operate. The companies plan to generate 190 megawatts on site and pull the remaining 200 megawatts from the NB Power grid.

Power Grid Concerns

New Brunswick Southwest MP John Williamson represents the Lorneville area. He worries the new facility puts increased demand on a struggling power grid and forces New Brunswickers to pay more for electricity.

“In the last three years, ratepayers in New Brunswick, from one end of the province to the other, have seen a 35 per cent power rate increase,” Williamson says. “That has been a huge impact on families and businesses, and it is one reason why many families in this province cannot afford to get by month to month.”

Williamson wrote a letter to Premier Susan Holt in early August outlining these concerns. He argues the province must secure adequate energy capacity before considering projects like a data centre.

The Province Promises Protection

Premier Susan Holt maintains the project does not harm residents. Her government released a draft policy on data centres and opened a public feedback period that runs until October 2.

“We have put in that draft policy that any new data centre project would have to have no impact on ratepayers or a positive impact on ratepayers,” Holt says. She notes the facility adds electrons to the grid, which allows the province to reduce pressure and costs for NB Power customers.

A Financial Boost for Saint John

For Saint John, the project represents a major financial opportunity. Mayor Donna Reardon highlights the $6 million in tax revenue the site generates. This amount exceeds the combined contributions of all heavy industry currently operating in the city.

“That is a lot of money you could do a lot of things with it,” Reardon says. “Saint John has some of the poorest communities in the country. We have got this neighborhood just down the street here, one of two kids go to school living in poverty. Those are the things that you can fix with that kind of cash.”

Reardon emphasizes that the city needs new investments to lower taxes and improve municipal services.

Frequently Asked Questions

Where is the proposed data centre located?

The proposed data centre is planned for the Lorneville area of Saint John, New Brunswick.

How much power does the facility need?

The data centre requires 390 megawatts of power. The operators generate 190 megawatts on site and draw 200 megawatts from the NB Power grid.

Does this project increase your power bill?

Premier Susan Holt states the government draft policy requires new data centres to have zero negative impact on ratepayers. The policy aims to ensure these projects stabilize or positively impact electricity costs.

How much tax revenue does the data centre generate?

The facility generates $6 million in tax revenue for the city of Saint John.