A massive data centre project, powered by artificial intelligence is planned for Point Tupper, Cape Breton and according to the province it is the largest privately funded development in Nova Scotia’s history.
EverWind Fuels says the $10 billion project is in an agreement with an AI company for a 20-year lease. The first $8 billion is to develop, construct and finance the centre, with the last $2 billion to go to wind energy projects.
Data centres house technology used to store, process, and manage digital data.
The first phase of the project would have a capacity of 95 megawatts in late 2027, with 325 megawatts in 2028 and up to 420 megawatts at full development.
“Point Tupper has supported industry in the Strait Region for more than 50 years,” says Ever Founder and CEO Trent Vichie in a news release. “Today’s announcement represents major new investment in Nova Scotia’s digital and energy infrastructure.”
There has been a lot of buzz about the possibility of the facility over the last several weeks, with community engagement sessions for those in the area to begin in late October or early November.
Houston changes stance
The project would still have to go through an industrial approval process.
In an announcement in Point Tupper this morning Premier Tim Houston says that will be ongoing.
“There’s a very stringent process for industrial entities that’s set up in the province,” explains Houston. “That doesn’t change.”
In June, Houston indicated the province would only consider data centres once major generation projects were operational.
Houston says the sentiment behind those earlier comments remains the same: protecting ratepayers.
But, now, several things have changed including developments around geopolitical and the federal government’s approach to data sovereignty.
Houston says any data-centre proposal would have to meet or exceed the requirements established federally and demonstrate that the project is “good for Nova Scotia”.
Water use
Data centres are known to use a significant amount of energy. This one will use 100,000 lites of water every day, similar to what a large shopping mall would use. That would increase to 500,000 litres after phase two.
The water use is for a closed-loop cooling system with water drawn from nearby Landrie Lake, which is in Richmond County and supplies the raw water used for Port Hawkesbury’s drinking-water system
EverWind says that amount of water is only 1 per cent of what the Lake can provide safely.
It will provide thousands of construction jobs with 215 permanent operating positions and will run in conjunction with EverWind’s green hydrogen and ammonia plant in the same area.
NDP raises concerns over power rates
In response, the Nova Scotia NDP is raising concerns about the potential impact data centres could have on electricity rates and water use.
Opposition Leader Claudia Chender says the Houston government should put protections in place before more projects move ahead.
“Nova Scotians have deep concerns about the impact of data centres, including on power rates and fresh water,” Chender said.
She criticized the province for supporting the Point Tupper project without introducing new legislation or regulations aimed at protecting ratepayers.
“People are worried. Bills keep rising, power is still unreliable, and the evidence shows that big data centres mean power rates go up even more,” Chender said.
The NDP is also pointing to Houston’s previous comments that data centres were not right for Nova Scotia, arguing the government has changed its position without giving Nova Scotians enough detail about how power costs will be handled.
-with files from Chuck Boudreau and Evan Taylor
