Federal AI Data Centre Guidelines Face Pushback Over Energy and Environmental Concerns

Ottawa’s new framework for guiding the development of artificial intelligence data centres is facing criticism from groups that say it does not go far enough.

The federal government introduced five principles Thursday to address concerns about AI data centres. They include reducing water use and environmental damage, making sure electricity costs are not passed on to Canadians, and being transparent about new projects.

However, the framework is voluntary and has no legal force. Critics say there are no clear consequences if companies fail to follow the principles.

Dru Jay, executive director of the Council of Canadians, said the government needs stronger rules to protect communities and the environment.

The framework has support from the Federation of Canadian Municipalities, while 23 companies have signed on. They include Amazon Web Services, Google, Microsoft, Meta, OpenAI and Anthropic.

AI Minister Evan Solomon defended the framework, saying industry support shows companies recognize the importance of community standards.

Concerns Over Energy and Water Use

The Carney government supports building more AI data centres, saying they could boost innovation and economic growth.

But critics are concerned about the huge amounts of electricity and water these facilities could require. There are also questions about whether local communities will have to pay for upgrades to power grids and other infrastructure.

Green Party Leader Elizabeth May has called for more information about how much water and electricity each project will use and who will pay the costs.

Some communities have already paused data centre development, while protests have taken place in several parts of Canada.

The federal NDP is also calling for a pause until governments better understand the potential benefits and risks.

NDP parliamentary leader Don Davies said the issue is in the public interest because data centres rely on public resources such as electricity and water.