Data Centre Development In Canada – A Provincial Survey

In Recent News.

Across the country, provinces are adopting different strategies (some are actively competing for investment through dedicated policies and infrastructure, while others are taking a more cautious approach due to grid restraints, environmental considerations, or uncertainty about economic returns). The following overview examines the status of AI data centre development across Canada, highlights major projects and policy developments, and identifies the key issues to watch in each jurisdiction.

British Columbia: active development; power is being rationed competitively.

Status: Major activity and emerging provincial controls.

The government of BC and BC Hydro have launched a competitive electricity allocation process for AI and data centre proposals. Up to 400 MW is expected to be allocated through the initial two-year process. This represents a shift away from first-come, first-served grid access toward choosing projects based on economic, technical, and public interest criteria. More info here.
The biggest development in BC at the moment is the proposed TELUS sovereign AI data centre cluster, consisting of an expanded Kamloops facility and two Vancouver locations. The cluster is expected to begin with approximately 85 MW and potentially scale to 150 MW and more than 60,000 GPUs by 2032. The Vancouver projects include a Mount Pleasant site and a large downtown facility near BC Place. More info here.
The downtown proposal would reuse heat through the Creative Energy district energy system and use closed-loop cooling, with proponents claiming sharply lower cooling energy and water requirements than conventional facilities. More info here.

Issues to Watch: land use approvals, local opposition, First Nations participation, heat and water claims, and which projects win limited BC Hydro capacity.

Alberta: Canada's most aggressive data centre expansion strategy.

Status: National leader in proposed hyperscale development.

Alberta has an explicit AI Data Centre Strategy built around power capacity, sustainable cooling, and economic growth. The province is positioning itself as a North American destination by offering access to natural gas, land, fibre infrastructure, and the option for developers to build dedicated generation rather than rely entirely on the provincial grid. More info here.

The largest confirmed project is Meta’s proposed $13 billion, one gigawatt data centre in Sturgeon County, scalable to 1.8 GW. Meta says it will fund the necessary generation and grid infrastructure, use closed-loop cooling, and support roughly 3,000 construction jobs and 300 permanent positions. The facility is expected to rely substantially on a new natural gas power plant being developed with Pembina Pipeline and partners. More info here.

Following Meta’s announcement, Premier Danielle Smith publicly defended the project amid growing public concern about electricity demand, water use, and potential impacts on utility rates. The province reiterated that the facility would rely on dedicated power generation and that Albertans will not subsidize the project’s electricity costs. The debate illustrates that public acceptance, infrastructure financing, and environmental impacts are becoming central policy issues alongside economic development. More info here.

Other major proposals include:

Wonder Valley, near Grande Prairie, beginning with a proposed 1.4 GW off-grid power system.
eStruxture CAL 3 in Rocky View County, with a 205,000 square foot facility and associated 90 MW generation component.
Beacon Heartland and several other planned campuses. (More info for all can be found here).

Reuters reported that Alberta is targeting as much as $100 billion in data centre investment, with almost 100 proposals at various stages. More info here.

Issues to Watch: natural gas emissions, carbon policy, transmission costs, whether projects deliver enough permanent employment, water use, and whether Alberta can process the volume of proposals without overbuilding.

Saskatchewan: one flagship project is rapidly changing the provincial discussion.

Status: Major project proceeding with direct Crown utility involvement.

Bell and its partners are advancing a large AI data centre campus in the Rural Municipality of Sherwood, south of Regina. The province described the project as a $12 billion investment, with a first 90,000-square-foot development scheduled to begin construction at the end of 2026. Power would be supplied through SaskPower, with some natural gas arrangements involving SaskEnergy. More info here.

The broader campus has been described as a multi-phase development on roughly 160 acres, potentially reaching around 300 MW, and associated with Bell’s AI infrastructure strategy. More info here.

The project has triggered questions about:

SaskPower’s capital obligations and who bears infrastructure costs.
The transparency of agreements involving Crown corporations.
Natural gas generation and provincial emissions.
Whether the employment and tax benefits justify the energy allocation. (More info here).

Issues to Watch: power purchase terms, SaskPower rate impacts, construction milestones, and whether Saskatchewan develops a formal province-wide data centre framework.

Manitoba: the government has rejected at least one major hyperscale proposal.

Status: Cautious

A proposed hyperscale AI data centre on approximately 141 hectares south of Winnipeg was rejected by Premier Wab Kinew’s government in June. Kinew cited concerns over farmland, environmental effects, rural community impacts, and uncertainty about whether the long-term economic benefits justified the resources required. More info here.

Manitoba Hydro has said it is monitoring prospective data centre loads, but its resource planning documents indicate there has been insufficient certainty to incorporate major AI loads confidently into long-term planning.

The province’s low-emissions hydroelectricity makes it attractive in theory, but that same power is considered a valuable and constrained public asset. Opposition groups argue it should instead support electrification, affordability, and higher-employment industries. More info here.

Issues to Watch: whether Manitoba creates criteria distinguishing acceptable smaller projects from hyperscale projects and whether surplus hydro capacity is reserved for other industrial or defence uses.

Ontario: the largest established market, with tighter control over new grid connections.

Status: mature market with rising regulatory scrutiny.

Ontario already has Canada’s largest concentration of conventional data centres, particularly around Toronto. The IESO says several new projects are either under construction or undergoing system impact assessments, and interest increased significantly in 2025.

The province is moving toward a framework under which certain large data centres would need ministerial approval before connecting to the electricity grid. Projects may be assessed based on employment, strategic value, domestic economic benefits, and energy security considerations rather than simply their ability to pay for a connection.
More info here.

Ontario’s integrated energy planning also treats data centres as a significant new source of electricity demand and includes them within a broader process for managing large industrial loads. More info here.

The most contentious current project has been the proposed Steelport hyperscale campus in Hamilton. Hamilton’s Committee of Adjustment rejected the associated land severance application after extensive public opposition, including concerns about electricity demand, water, noise, waterfront land use, and limited permanent employment. That does not necessarily end all possible development, but it represents a major local setback. More info here.

Issues to Watch: implementation of ministerial connection approvals, IESO supply planning, Steelport’s next steps, nuclear and transmission expansion, and local land use opposition.

Quebec: established hub, but large users will face higher prices and greater selection.

Status: Strong existing industry with tightening energy policy.

Quebec has long marketed itself to data centres based on inexpensive, low-emissions hydroelectricity and Montreal’s connectivity and technical workforce. Google’s selection of Montreal for a cloud region joins existing investments by companies such as Microsoft, Amazon, and IBM. More info here.

However, Quebec no longer treats all data centre load as automatically desirable. Hydro-Québec has proposed a new rate for large data centres intended to recover more of the costs associated with major electricity demand. Large projects above defined thresholds also require provincial review, allowing Quebec to consider economic benefits, digital sovereignty, innovation, and strategic value. More info here.

Hydro Quebec’s forecast data centre demand has reportedly increased to roughly 1,102 MW by 2035, creating competition with manufacturing, electrification, and other industrial users for limited power blocks. More info here.

Issues to watch: approval of the new tariff, which projects receive large power allocations, water and heat impacts around Montreal, and whether Quebec prioritizes sovereign AI and higher employment projects over basic colocation facilities.

New Brunswick: major proposed project facing strong local and political opposition.

Status: one very large proposal under active controversy.

A proposed hyperscale campus in the Spruce Lake/Lorneville area near Saint John could require approximately 390 MW, more than 10% of New Brunswick’s current electricity demand. Plans reportedly include roughly 190 MW of on-site natural gas generation and approximately 200 MW from NB Power. More info here.

The project involves VoltaGrid and Beacon Data Centers and has raised concerns about:

Greenhouse gas emissions.
NB Power’s ability to serve the load.
Potential effects on residential rates.
Wetlands, groundwater, and nearby communities.
The limited number of permanent jobs relative to power use.

The government rejected calls for a moratorium on AI data centres but has indicated it is considering future policy limits and approval criteria for additional projects, suggesting a more managed approach to future development rather than an outright ban. More info here.

Issues to Watch: environmental impact assessment, NB Power connection terms, municipal approvals, and whether the province introduces dedicated economic benefit or ratepayer protection conditions.

Nova Scotia: promotional interest, but the premier is publicly cautious.

Status: Limited immediate activity.

Invest Nova Scotia actively markets the province as a potential data centre location, emphasizing subsea connectivity, geography, resilience, and future renewable energy development. More info here.

However, Premier Tim Houston said in June that Nova Scotia is not actively pursuing a major data centre project and would support one only if the province could safely and fully provide the necessary electricity. He described data centres as a future possibility rather than a current priority. More info here.

There have been reports of early-stage interest in sites such as Malagash, but I did not find a sufficiently developed, officially confirmed hyperscale proposal comparable to Alberta, Saskatchewan, or New Brunswick.

Issues to watch: offshore wind development, future grid capacity, subsea cable advantages, and whether proposed projects move beyond preliminary land acquisition or discussions.

Prince Edward Island: very limited hyperscale activity.

Status: no major confirmed project located.

I did not find a major, verified hyperscale data centre proposal or a dedicated provincial strategy in PEI. The province’s small electricity system, dependence on imported power, and limited available generation make a large AI facility difficult without substantial new generation and transmission infrastructure.

There has been some public discussion about whether a major data centre would be practical around Charlottetown, but I could find no credible evidence of a current large project or formal government commitment.

Issues to Watch: small edge computing or public sector facilities rather than hyperscale campuses, Maritime transmission upgrades, and future regional energy planning.

Newfoundland and Labrador: hydro potential, but current activity remains limited and historically crypto-focused.

Status: Long term theoretical potential, little verified current AI hyperscale activity.

Labrador has attracted data centre interest in the past because of hydroelectricity and cold weather cooling. Historically, however, much of the activity involved cryptocurrency mining rather than modern sovereign AI or cloud campuses. The Canada Energy Regulator previously identified roughly 17 MW of existing data centre load in Labrador and substantial additional connection inquiries.

The new Quebec- Newfoundland and Labrador hydroelectric framework, including future development at Churchill Falls and Gull Island, could eventually strengthen Labrador’s appeal for electricity intensive industry. However, I did not find a confirmed 2026 hyperscale AI project supported by the provincial government.

Issues to Watch: Labrador transmission capacity, Indigenous consultation, whether new hydro developments support local industry or exports, and the distinction between cryptocurrency facilities and higher value AI computing.

Conclusion

Canada’s AI data centre landscape is evolving quickly, with provincial governments increasingly moving beyond simply attracting investment to determining which projects deliver the greatest long term public value. Access to electricity, environmental performance, Indigenous partnerships, economic benefits, and strategic priorities such as digital sovereignty are becoming central considerations in project approvals.

While Alberta, B.C., Saskatchewan, Ontario, and Quebec are leading development in different ways, other provinces are taking more measured approaches as they weigh the tradeoffs between economic growth and limited energy resources. As AI infrastructure demand continues to grow, the policy choices made over the next few years will play a significant role in shaping Canada’s competitiveness, electricity systems, and broader digital economy. Stakeholders should monitor not only new project announcements, but also evolving provincial approval frameworks, electricity allocation policies, and regulatory decisions that will determine where Canada’s next generation of AI infrastructure is ultimately built.