Nova Scotia Premier Addresses Future of Data Centres Amid Energy Supply Concerns

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Premier Tim Houston emphasizes the need for sufficient energy supply before considering data centre projects in Nova Scotia, amidst growing environmental concerns and contrasting provincial approaches to data centre development.

HALIFAX — Nova Scotia's Premier, Tim Houston, has made it clear that his government is not currently pursuing data centre projects. He stated that any future support for such initiatives would hinge on the province's ability to provide the necessary energy for these massive operations, which are crucial for artificial intelligence and other high-tech sectors. Data centres require substantial electricity to operate and cool their computer servers, raising significant concerns about energy supply and environmental impact.
During a recent press briefing, Houston reiterated that there are no active proposals for data centres in Nova Scotia at this time, nor is it a priority for his administration. However, he indicated a willingness to engage in discussions about data centres once the province's major energy generation projects are fully operational. "We’re going to produce a lot of energy in this province when Wind West is fully operational, with the gas opportunities we have, more of the onshore wind; we’re going to generate significant amounts of energy... at that point in time, that would be a more appropriate discussion," he remarked.
The Wind West project is particularly ambitious, aiming to establish Canada’s first offshore wind farms on a large scale. Houston has estimated that the offshore wind potential in the province ranges from 40 to 60 gigawatts. The first phase of the Wind West initiative is projected to cost approximately $60 billion and is expected to generate five gigawatts of power by the year 2033. However, Houston emphasized that any commitment to a data centre would only be considered if the energy needs could be met safely, without posing risks to Nova Scotians.
Environmental advocates have expressed their concerns regarding the high levels of energy and water consumption associated with data centres. A report from the United Nations University highlights that the global environmental footprint of data centres is already comparable to that of some of the largest nations, with predictions indicating that their water and energy usage, along with pollution levels, could double within four years due to the increasing demand driven by artificial intelligence.
In a related context, Manitoba Premier Wab Kinew recently rejected plans for a substantial AI data centre southeast of Winnipeg, citing the project's extensive energy requirements and community impact as outweighing its limited benefits. Kinew expressed skepticism about the future demand for data centres of such scale, particularly in light of advancements in computing technology. "There’s a big threat to the environment and not much benefit to the economy," he stated at a press conference on June 4.
In contrast, Alberta is moving forward with data centre development. TransAlta Corp., an electricity generator, announced plans in February to supply power to a new data centre west of Edmonton. This agreement includes a long-term power purchase agreement for an initial capacity of around 230 megawatts, with potential expansion to 1,000 megawatts. Alberta's technology minister previously indicated that the province aims to have $100 billion worth of artificial intelligence data centres under construction within the next five years.
Moreover, British Columbia's government has initiated a competitive selection process for artificial intelligence and data centre projects, allowing companies to vie for access to a total of 400 megawatts of electricity over two years. In Nova Scotia, however, discussions surrounding such developments will be postponed. Houston noted, "Certainly, people talk to me about: ‘well, Nova Scotia would be a great place for a data centre,’ but there’s never anything past that. It’s not a today thing, not even a tomorrow thing."

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