Cory Morgan: Driving Away Data Centres Could Be a Loss for Canada, a Gain for China

CommentaryThe global race to build data centres for artificial intelligence is on. Demand for AI computing is growing at an astronomical rate, and data processing facilities are scrambling to keep up.Canada, and Alberta in particular, are excellently placed to take advantage of this latest tech boom for several reasons. Opposition to the construction of data centres has reached a fever pitch in some areas, and local governments have been responding by cancelling the projects.Misunderstanding about these centres could lead to a lost opportunity for Canada, and a gain for Canada’s adversaries.There are valid concerns to be addressed with these large projects. The massive amount of energy consumption is one of them. In some American regions, data centres were constructed that tapped into the local power grid. That led to energy instability and some local price spikes in electricity costs. In Alberta, however, proposed data centres must utilize a “bring-your-own-power” model. They can’t use existing power generation infrastructure and must construct their own. With the abundant supply of natural gas in Alberta and self-generation models, data centres will be self-contained and won’t impact local power prices.Alberta has struggled to get its natural gas to market for years as red tape has mired the construction of new pipelines and LNG terminals for export. Consuming the gas locally bypasses the transportation requirement. Data centres won’t just consume natural gas; they will purchase it. That means continued employment for Albertans in the energy sector, and large royalties paid to the provincial government. It lends the government a predictable revenue stream, which could stabilize budgeting that had been subject to the roller coaster of world energy prices.The Canadian climate is part of why companies are seeking to build in the north. Cooling the data centres is one of the most energy and cost-intensive aspects for them. Harsh Canadian winters become an asset as outside air can be used to cool the computing systems, which reduces the energy draw.Cooling the older data centres involved an evaporative process, which consumed an inordinate amount of local water supplies. This is another valid concern for opponents of data centres, but that concern has been resolved. New data centres use a closed-loop cooling system, meaning they don’t constantly draw water. They operate much like a car radiator does. The massive data centre being constructed by Meta north of Edmonton is expected to consume no more water than a golf course would.Alberta has a well-trained workforce experienced in mega-projects, but much of it has been idle due to delays in energy projects. Directing those skills toward data centres keeps local employment moving.Land use and proximity to residential neighbourhoods can be an issue. In Alberta, the local regulator shut down a proposal near the town of Olds because it planned to build a new generator too close to the townsite. While some opponents claim the centres are unregulated, this ruling proves otherwise. The Meta data centre is being built on land that has long been zoned for heavy industrial use. An oil refinery could have been built there had it applied. Use of farmland is of concern for some centres, but the footprint is much smaller than the average solar project, and many centres are planned for non-arable areas.Some of the accusations made by opponents of the centres verge on the bizarre. Claims that the centres are secret government surveillance centres, that they will control nanoparticles that have been injected into citizens, or even that they are using human stem cells for processing are flying (ironically) through the internet. There is no basis for any of these claims of course.Much of the concern lies with a mistrust of AI itself. It is a new technological development which is expanding at an incredible speed, and it clearly will impact every aspect of living. AI is changing the job market, it potentially can expand the ability for malignant governments to control information, and it simply causes a feeling of insecurity as a human when a technological creation can out-think us. We used to consider the human mind to be the most powerful computer, but that’s no longer the case.Opposing the development of local data centres won’t do a thing to hinder the growth of AI, however. That cat is out of the bag. The world is dependent on networked computing, and demand for more powerful services is only going to rise. Rather than opposing the tidal wave of change, we are better placed to take part in it.Distrust of local governments is understandable, but Canadian governments are still infinitely more trustworthy than those in places such as China. If we drive data centres out of Canada, it only means we will be dependent on the services provided from overseas data centres hosted by countries that don’t have our best interests in mind.Canada has a productivity problem and a sinking GDP per capita ratio because it has become a difficult country to do business in. Misplaced opposition to data centres will only deepen that problem. In shutting down these centres, we aren’t saving the world from the challenges that come with AI. We are just making ourselves more insular and poorer.Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.