Data Centres and Atlantic Canada – the Contemporary Landscape

Far from being trend setters, there appears to be a fairly tepid approach to AI by Atlantic governments, at least in terms of forward-facing public policy. But as data centers and related AI infrastructure become a more common topic of discussion, certain measures are being announced by these jurisdictions, coupled with reaction from the public and the political parties.

NEW BRUNSWICK

In New Brunswick, a consultation was recently launched to gauge public opinion on data center development in the province, and submissions will be accepted until October 1. The guidelines supporting the policy framework for data center development are:

  • No additional costs for electricity ratepayers
  • Sustainable development
  • Economic benefits for New Brunswickers
  • Long-term impact
  • Community engagement and benefits

 

A 390-megawatt data centre is proposed in the community of Lorneville, near Saint John, is currently under review by the province, though Premier Susan Holt promoted the project at the recent investment summit hosted by Prime Minister Carney in Toronto. 

The project proponents, Beacon Data Centers and VoltaGrid, note, “VoltaGrid’s innovative “Power-as-a-Service” model will strengthen the Saint John energy ecosystem by generating on-site power. The 190 MW we will generate acts as a critical pressure relief valve for the local grid so we don’t compete with what residents need.” Though 200 megawatts of power would still be required.

Conservative Member of Parliament John Williamson has written to Premier Susan Holt, citing concerns over the potential for this project to lead to higher power rates for NB Power ratepayers. He noted, “as night follows day, the construction of data centres throughout North America has led to power rate increases paid by local electricity consumers. Beacon Data Centers should not be permitted to plug into our grid only to drive up power rates paid by New Brunswick families and businesses.”

NOVA SCOTIA

Nova Scotia has been without a policy framework and Nova Scotia Premier Tim Houston had signaled earlier in the summer that data centres were not a preoccupation for his government.  In June, he stated: “This discussion’s so far in the future. There wouldn’t be a commitment to a data centre unless we could fully supply the energy without any risk to Nova Scotians. We wouldn’t put Nova Scotians’ grid at risk and we wouldn’t put their health at risk.”

But on September 23, 2026, the Premier issued a statement noting that the conversation had changed, and outlined new national principles for responsible data centre development that had been developed along with investment announcements in Saskatchewan. The Premier outlined five “starting conditions” for companies wanting to build data centres in Nova Scotia:

  • Meet or exceed Prime Minister Carney’s new federal standards.
  • Protect our water and environment, including closed loop cooling and strict standards around water use, noise and emissions.
  • Protect Nova Scotia ratepayers. Their electricity demands cannot increase power rates for other Nova Scotians. They must pay the costs they create and contribute to a stronger, more reliable grid. Their presence must either have no negative impact on other customers’ rates or help lower them.
  • Deliver significant, lasting benefits for Nova Scotians. That means jobs, training, local business opportunities and meaningful benefits negotiated with the host municipality.
  • Provide a direct financial return to Nova Scotians, above and beyond normal taxes.

 

Former Premier Iain Rankin, who continues to serve as an MLA and is interim leader of the Liberal Party of Nova Scotia, recently introduced Bill 291, the Data Centre Water and Ratepayer Protection Act. The intent of the bill would be to protect taxpayers from the impacts on the electricity grid and water resources, and make data centre proponents pay their own way and go through an approval process.

Rankin stated, ““AI and data centres are expanding rapidly across the country. If these projects come here, we need the rules in place before the first shovel hits the ground, not after Nova Scotians are already on the hook.”

Given that Premier Houston’s Progressive Conservative government holds a very comfortable majority, this bill is unlikely to advance.  

PRINCE EDWARD ISLAND

There is no policy framework established here either, though public debate over a potential data centre in Charlottetown ramped up due to a hypothetical question raised during a city council meeting.  After the issue swept across social media feeds, the mayor, Philip Brown, clarified that no plans were in place. “Hypothetical questions were asked at two standing committee meetings searching for water and electrical requirements for this type of facility. There was no request on building or looking for a developer for this type of project. None. Zero.”

NEWFOUNDLAND AND LABRADOR

Premier Wakeham’s government has not issued any formal policy directive in relation to data centre development, though as the Capital Hill Group has noted before, 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.

Although the data centre debate has not seemingly arrived in this province, Newfoundland and Labrador Senator David Wells, who chairs the Senate’s Transport and Communications committee has noted that Newfoundland and Labrador must look into alternative opportunities such as data centres, AI facilities and other energy-hungry industries that are desperate for clean, green energy.

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