TELUS Collaborates with Government and Westbank Corp. on AI Data Centers in British Columbia

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TELUS is set to expand its AI data center operations in British Columbia with three new facilities, aiming to enhance Canada’s AI infrastructure and meet rising demand.

TELUS, a Vancouver-based telecommunications company, is collaborating with the Canadian government and local developer Westbank Corp. to establish three AI data centers in British Columbia. This initiative includes the expansion of an existing facility in Kamloops and the construction of two new centers in Vancouver. TELUS president and CEO Darren Entwistle highlighted the project’s significance, stating that the overwhelming demand that led to the complete sell-out of their first AI factory in Rimouski, Quebec, demonstrates the desire for advanced AI capabilities to be developed within Canada.
These data centers are part of the federal government’s Enabling Large-Scale Sovereign AI Data Centres initiative, designed to bolster Canada’s domestic AI infrastructure. This initiative aims to ensure that Canadian AI computing power and sensitive data remain within the country rather than being handled by foreign entities. Data centers, which house rows of computers for storing and processing vast amounts of digital information, are crucial for the evolving tech landscape.
The Kamloops AI data center is currently operational and will undergo expansion, with the enhanced facility expected to be fully operational by 2026. The first of the new data centers in Vancouver will be situated within a six-storey office building in Mount Pleasant. This facility is anticipated to launch in late 2026, with gradual expansions leading to its completion in 2028. Importantly, this center will utilize renewable energy and will connect to Vancouver’s Neighbourhood Energy Utility.
The second proposed data center in Vancouver will be located in Yaletown, adjacent to BC Place Stadium. This facility will be constructed atop Creative Energy’s upgraded district energy steam plant, which features 14 kilometers of underground steam distribution pipes supplying hot water and heat to over 200 buildings in downtown Vancouver. A closed-loop liquid cooling system is planned for this facility, which is expected to reduce cooling energy consumption by 80% compared to traditional methods.
Jim Tsaknis, vice president and data center expert at Colliers Canada, indicated that Vancouver is likely to see an increase in data centers as the sector continues to mature. However, he pointed out the challenge of finding suitable land for data center construction, given that much of Vancouver is situated on a floodplain. With over 18 kilometers of waterfront along the Pacific Ocean and the Fraser River, it is estimated that around 10,000 buildings are situated in designated 100-year floodplains, putting them at risk.
Tsaknis also noted that the construction of data centers is capital intensive and requires advanced technical specifications. He emphasized the significance of mechanical, electrical, and plumbing (MEP) systems in these facilities. As the demand for data centers increases, British Columbia is expected to see a rise in smaller, more energy-efficient data centers in the future, which could benefit the construction industry, especially amid a slowdown in residential building projects.
EllisDon, recognized as one of Canada’s largest data center builders, echoed the complexities involved in data center construction. Dan Jolivet, EllisDon’s senior vice president and area manager for life sciences and technology, remarked on the technical challenges and stringent quality requirements that make data center projects particularly difficult to execute. He highlighted the necessity for expert labor planning, detailed scheduling, and careful procurement of equipment.
Data centers are known for their high electricity consumption, but BC Hydro has assured that it has sufficient capacity to support the growing number of data centers in the province alongside other consumers. Currently, there are approximately 12 conventional data centers in British Columbia, utilizing around 20 megawatts (MW) of power, along with various cryptocurrency and emerging AI applications.
BC Hydro has connected roughly 166 MW from seven cryptocurrency operations, with another 107 MW in advanced planning stages, totaling approximately 273 MW. The provincial utility has stated that it is proactively managing the rising electricity demand from energy-intensive industries, including data centers. BC Hydro has a total installed electricity capacity of about 13,400 MW and is undertaking several initiatives to meet future demand, including the commissioning of the John Horgan Dam and Generating Station and expanding energy efficiency programs.
In 2022, a moratorium was placed on new cryptocurrency mining connections, and in January 2026, the B.C. government partnered with BC Hydro to initiate a competitive allocation process for managing electricity demand from AI and data center developments. This process is designed to support new projects while ensuring that established industries, such as mining, LNG, and forestry, maintain their electricity capacity.

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