HALIFAX – Nova Scotia Premier Tim Houston is defending his recent decision to shift his position regarding the timeline for considering data centres in the province. In June, the premier stated that it was premature for the provincial government to focus on data centres, indicating that such discussions would be a long way off.

However, a few months later, Houston softened his stance, suggesting a willingness to entertain proposals from the data centre sector. “A lot has happened... in the world, geopolitics, all kinds of situations there,” he told reporters on Thursday. He elaborated that the positioning of the federal government around data sovereignty and the resulting regulations significantly influenced his revised perspective.

Previously, Houston had mentioned that discussions regarding data centres would be postponed until major energy generation projects, such as the ambitious Wind West offshore wind farms, were completed. On June 18, he emphasized the necessity of generating sufficient energy to support any data centre without risking energy supply to Nova Scotians. He characterized the topic as something that was “so far out in the future” and underlined that no commitment would be made unless robust energy conditions were met.

Recently, however, Houston recognized data centres as increasingly vital infrastructure, asserting that Canada should not depend on other nations for data storage. His openness to data centre proposals was reignited following Ottawa's introduction of new regulations concerning data management. “I think the sentiment of that (June) statement was that we wouldn’t allow an impact on ratepayers,” Houston reiterated. He emphasized that they would not significantly raise energy costs for households in favor of industrial users.

Data centres, especially significant in AI and high-tech industries, demand considerable electricity to operate and cool extensive server farms. Notably, EverWind Fuels is exploring the establishment of a data centre in Cape Breton, integrated with its large-scale green hydrogen project at an existing industrial location in Point Tupper, N.S. Company spokesperson Claire Parsons indicated that this data centre would align with EverWind's clean energy initiatives across Nova Scotia but refrained from confirming any potential application for AI.

Official Opposition Leader Claudia Chender criticized Houston’s change in position on data centres, labeling it a “stunning reversal.” Chender remarked that when the premier previously declared the topic off the table, Nova Scotians took him at his word, especially observing similar debates unfolding in other jurisdictions.

For instance, Manitoba Premier Wab Kinew recently declined plans for a massive AI data centre, citing its size, energy consumption, and effects on the community as outweighing potential benefits. Conversely, Bell Canada is expanding its planned data centre project in Saskatchewan, which Prime Minister Mark Carney forecasts will attract over $50 billion in capital investment.

In Alberta, the embrace of data centre development continues, as TransAlta Corp. announced plans in February for a new data centre powered by renewable energy near Edmonton. The provincial technology minister projected significant growth in AI data centre construction over the next five years, targeting $100 billion worth of developments.

Amid this backdrop, environmental advocates express concerns about the substantial energy and water consumption associated with data centres, raising alarms regarding potential chemical pollution. A report from the United Nations University indicates that the global environmental footprint of data centres is already comparable to that of some major nations. It predicts that their energy and water usage, as well as pollution, could double within four years due to the heightened reliance on artificial intelligence.

Both Chender and interim Liberal leader Iain Rankin voiced apprehension regarding the environmental implications and water usage of proposed data centres. Houston assured the public that any data centre in Nova Scotia would undergo an approval process that would exceed federal mandates, ensuring that environmental impacts and implications for ratepayers would be evaluated thoroughly.

The opposition leaders have stressed the necessity for these protections to be enshrined in legislation. “It’s one thing to say that water and environmental concerns and ratepayers will be protected, but it’s not a fact that the premier’s word is stronger than regulations or legislation,” Rankin remarked.