Ottawa ‘not responsible’ for regulating AI data centre electricity use: minister

The federal government in Ottawa is not responsible for regulating electricity usage by AI data centres, according to Artificial Intelligence Minister Evan Solomon. He stated this during a Senate committee on Social Affairs, Science and Technology on Thursday. While the memoranda of understanding can require companies to adhere to federal standards and principles of responsible use, Solomon emphasized that the federal government cannot regulate power usage by AI data centres.

Provincial regulators, such as those in Saskatchewan and Nova Scotia, are in the process of creating their own data centre laws. Canada is doubling the capacity of its energy grid to support its AI strategy, which Solomon considers critical. Over 160 proposals for AI data centres have been received, with Ottawa supporting four companies so far.

Some major projects in Canada are being led by U.S. tech giants. An example is EverWind Fuels' $10-billion AI data centre in Cape Breton, Nova Scotia, where Anthropic, a U.S. AI company, has signed a 20-year lease for a 18,600-square meter data centre. This data centre will draw 95 megawatts of electricity in its first phase and is expected to expand to 420 megawatts by mid-2028.

Nova Scotia Premier Tim Houston sees the project as a vote of confidence in the rural area, highlighting the need for secure data infrastructure to meet the requirements of businesses, governments, and healthcare institutions.