Saskatchewan Mandates Canadian Ownership for New Data Centres and Requires Self-Sustaining Power

📅 2 weeks ago

The Saskatchewan government has introduced new regulations for data centres, emphasizing Canadian ownership and self-sufficient power supply, amidst ongoing developments at Bell Canada's major AI data centre project.

In Saskatchewan, new regulations have been announced mandating that all new data centres must be owned by Canadian entities and must also be responsible for their own electricity supply. This initiative, revealed by the provincial government, aims to safeguard Canadian data while ensuring the reliability of utility services. Jeremy Harrison, the minister responsible for the Crown Investments Corporation, emphasized the importance of Canadian companies leading in data and artificial intelligence (AI) infrastructure, particularly in light of recent global events that have underscored the significance of data security, akin to energy security for nations.
Harrison stated, "We felt from the very, very beginning that it was important for Canadian companies to be the proponent companies for data and AI infrastructure." He noted that the need for such measures has become increasingly clear in recent weeks, highlighting a critical focus on long-term security in the data sector.
As part of the new framework, applicants wishing to construct data centres must demonstrate relevant experience and the capability to generate significant employment opportunities. To streamline the approval process, the province will implement a centralized intake system for evaluating new project proposals. Harrison made this announcement at the construction site of Bell Canada’s $1.7 billion AI data centre located just outside Regina, where work is actively progressing. Observers noted large equipment being moved on site and framing operations underway for two of the planned four buildings.
Bell’s data centre, poised to become the largest Canadian-owned facility, is designed to utilize 300 megawatts of electricity. However, this project does not fall under the new regulations, as it will draw power from Saskatchewan’s existing grid managed by Crown utility SaskPower. In response to questions about the timing of the framework's introduction relative to Bell’s ongoing construction, Harrison explained that the province had already been operating under these guidelines, which enabled a swift collaboration with Bell on this project. "Bell really was our partner right from the very beginning, and we felt it was important to move quickly on this project," he stated, emphasizing the availability of power allocation as a critical factor.
Public feedback has played a role in shaping this new framework, with Harrison noting a general support for the province's direction despite varying opinions on AI. John Watson, group president of Bell, reassured the public that the data centre will not utilize groundwater, but instead employ a closed-loop cooling system to manage temperature effectively. He addressed misinformation regarding the project's water usage, stating, "Every time I get in a cab here, everyone thinks that we’re going to use millions of litres of water."
Watson further mentioned that the facility plans to develop a system that allows the nearby University of Regina and the George Gordon First Nation to benefit from excess heat generated by the centre's operations. Concerns have surfaced regarding the expedited approval process for Bell's data centre, which is situated in the Rural Municipality of Sherwood. A rezoning application was submitted to the municipality's council in February, followed by a joint announcement from the province and Bell in March. Shortly after, a majority of the municipality's council resigned for reasons that remain unspecified, prompting the province to appoint new members to restore quorum. In April, the council ultimately approved the data centre project.
Brittney Senger, the Opposition NDP’s AI critic, criticized the Saskatchewan Party government for lacking transparency and accountability during the development of the Bell AI data centre project. She questioned the legitimacy of Harrison's claims that the government had been operating under the new guidelines for months without prior public knowledge.
The situation surrounding data centres has been contentious in other provinces as well. For instance, in June, Manitoba Premier Wab Kinew announced the cancellation of a large-scale data centre project southeast of Winnipeg, citing concerns regarding its size and energy consumption. Similarly, in Alberta, residents have expressed their opposition through town hall meetings regarding proposed data centres. Meanwhile, tech giant Meta recently unveiled plans for a $13 billion AI data centre project north of Edmonton, which will be powered by a $4.6 billion natural gas-fired power plant.
When asked about the decisions made by other provinces, Harrison refrained from commenting, stating, "(AI infrastructure) can be here in Canada or it can be elsewhere. That is the question that we have in front of us and elsewhere would likely mean in the United States. We choose Canada."

Related Posts