Kevin Yin frames the data centre debate eloquently in this recent Globe and Mail article: “The backlash against data centres is understandable. But the answer is not to block construction. It is to design a better bargain.”
Here are some things we can say about data centres right now:
- They create relatively few long-term direct jobs (though innovation spillover does exist when they cluster).
- They are power hungry.
- They are a core physical engine of the new global economy.
- They play to Canada’s physical and economic strengths as an energy superpower.
Meaning, Canada is uniquely suited to become a global hub for data centres and AI infrastructure. Canada has abundant energy, naturally lower cooling costs, geopolitical stability, and deep institutional capital.
The challenge is that we need to manage the negative externalities. No household, for instance, wants to pay higher energy bills.
We also need to make sure that there are long-term economic benefits for the country, and that we’re not repeating the old habit of “exporting” our resources to other countries so that they can innovate. That would be a bad deal.
The world is going to continue to need a lot more data centres, and Canada is in a unique position to lead and have control over its own destiny. Kevin offers a few ideas for what a better bargain might look like, if you’d like to have a read.