Vancouver and Kamloops are set to host a new data center cluster following a joint initiative announced by the Canadian government and Telus. The AI Minister, Evan Solomon, unveiled the plan in Vancouver, emphasizing its role in enhancing Canada’s computing capabilities and supporting local competitiveness in the global AI market.
The project entails the expansion of Telus’s current facility in Kamloops and the establishment of two additional data centers in Vancouver through Ottawa’s Enabling large-scale sovereign AI data centers program. Solomon highlighted the importance of securing Canadian data, intellectual property, and economic advantage within the country.
Telus confirmed that the Kamloops and the first Vancouver data centers, located at the former Hootsuite headquarters in Mount Pleasant, will be operational later this year. A second facility at 150 West Georgia Street is scheduled for completion in 2029. The project will initially draw 85 megawatts of power, with plans to scale up to 150 megawatts by 2032.
Telus CEO, Darren Entwistle, emphasized the environmental sustainability of the project, noting that the facilities will run on 98% clean hydro power and recycle waste energy to heat 150,000 homes. The data centers are projected to use 90% less water than traditional facilities and may incorporate recycled water from B.C. Place stadium.
The initiative has received support from the B.C. government, which recently introduced its own AI data center power policy. This policy mandates a competitive bidding process for a capped electricity supply of 400 megawatts, prioritizing projects that promote data sovereignty, environmental benefits, and Indigenous participation.
While politicians lauded the initiative, it has stirred controversy in some areas. Plans for a new data center in Nanaimo faced opposition due to concerns over excessive water consumption. Green Party Leader Emily Lowan criticized the approach as “build-first regulate-later” and called for a halt on new data center projects until stronger regulations are in place.
The proposed data centers have raised questions about their environmental impact, particularly regarding water use and power consumption. These concerns reflect broader debates in North America as tech companies expand their AI operations to meet growing computational demands.