Concerns Rise Over New Brunswick's Data Centre Proposals Amid Citizen Opposition

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The emergence of multiple data centre proposals in New Brunswick has sparked significant community concern, with local residents advocating for stricter regulations and transparency from the provincial government.

FREDERICTON — Chris Watson expressed his deep concern upon reviewing recent communications from a New Brunswick business development agency regarding data centres. Over the past year, Watson has been a prominent voice in the opposition against a significant data centre initiative in his neighborhood in Saint John, N.B. However, through right-to-information legislation, he uncovered another proposal from a company aiming to establish one of these energy-intensive projects in his area. Watson stated, "It's not surprising, but it's just deeply disappointing," in a recent interview with The Canadian Press.
The correspondence highlights how New Brunswick is considering data centre proposals without adequately informing the residents who will be most impacted. Watson criticized the provincial government for its apparent rush to review these projects, lacking the necessary rules or guidelines to safeguard both citizens and the environment. NB Power, the province's Crown-owned electric utility, confirmed that it has received 10 applications from data centre projects, which may require up to 900 megawatts of power. However, the utility has refrained from disclosing the identities of these projects, citing confidentiality.
The Liberal provincial government views these data centres as potential avenues for economic growth, promising tax revenue, private sector participation, and job creation. The ongoing debate in New Brunswick underscores the difficulties faced by provincial and municipal authorities as they encounter a surge in data centre applications. These facilities can vary significantly in size, from small micro data centres comparable to refrigerators to large hyperscale campuses that consume energy levels akin to a small city.
Currently, the New Brunswick government is developing a policy framework for data centre development and has recently solicited public feedback. The provincial government articulated that "data centre development could be an opportunity for New Brunswick to generate economic growth through tax revenue, private sector investment, construction, and permanent job creation, as well as potential community benefits."
Watson, representing the grassroots community group Save Lorneville, advocates for a moratorium on new data centre initiatives until stronger policies are established to protect residents, businesses, and the environment. Among the known proposed data centres in New Brunswick, none have yet received final approval. A notable project at the center of attention is a 400-megawatt data centre associated with a $2 billion artificial intelligence hub, a collaboration between Alberta's Beacon Data Centers and U.S.-based VoltaGrid. This project, touted as Atlantic Canada's first hyperscale AI facility, has faced significant opposition from local residents, including Watson and his group.
In a recent development, Fredericton-based Faster Than Light unveiled its plan for a $2.7 billion data centre with a capacity of 375 megawatts. Additionally, Watson's community group discovered a proposal from U.S. firm Cross River Infrastructure Partners, which seeks 50 megawatts of power for a "large-scale data centre campus" that may allow for future expansion. This proposal is situated within the same Spruce Lake Industrial Park as the Beacon Data Centers initiative.
NB Power clarified that the 10 applications it has received do not guarantee approval for grid connection. Furthermore, a spokesperson indicated that large-scale projects like data centres would necessitate contractual flexibility to mitigate pressure on customer rates. Thomas Bateman, a political science professor at St. Thomas University in Fredericton, noted that public opposition to data centres is partly fueled by concerns surrounding artificial intelligence and the substantial energy demands of these facilities.
Recent polling by the Angus Reid Institute revealed that a majority of Canadians are skeptical about data centres, with 64 percent believing their provincial governments should limit the development of large facilities. Less than 20 percent would advocate for more data centres, while the remainder remained uncertain.
This growing opposition among Canadians contrasts with the federal Liberal government's agenda, which promotes the development of major AI data centres as part of its sovereign-compute and digital-sovereignty strategy. Despite political pressures, some provincial governments are not hesitating to leverage the potential revenue opportunities presented by these large facilities. For instance, Bell Canada is erecting what is expected to be the country's largest Canadian-owned data centre outside Regina, Saskatchewan, with a budget of $1.7 billion and a power requirement of 300 megawatts from the provincial grid. This project received approval prior to the establishment of Saskatchewan's new regulatory framework.
In Alberta, Meta announced plans for a data centre exceeding $13 billion, which would require one gigawatt of power in Sturgeon County, north of Edmonton. This announcement triggered protests, and the Alberta technology minister faced backlash at public consultations. In Eastern Canada, responses to data centre proposals have varied. In September, Nova Scotia Premier Tim Houston indicated that his Progressive Conservative government would consider sector proposals due to evolving conditions such as geopolitics and Ottawa’s position. Conversely, Newfoundland and Labrador's energy minister suggested the province could sell excess power to data centres. In Quebec, Hydro-Quebec is proposing to double the rates paid by data centres classified as large-power customers, with a consultant warning that energy consumption from North American data centres could rise by 133 percent between 2024 and 2030.

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