The federal government is getting into AI data centres. It should expect controversies

Prime Minister Mark Carney touches a pigs lungs at Toronto General Hospital, Thursday June 4, 2026. Photo by Peter J Thompson /National Post

Article content

OTTAWA — Prime Minister Mark Carney announced Canada’s artificial intelligence strategy on Thursday, with a plan to for “large-scale AI data centres” and a goal of massively increasing the country’s computing capacity by 2030.

Article content

That means lots of new AI data centres, with the hopes of increasingly keeping Canadian data within the country’s borders.

Article content

Article content

But until recently, developing these facilities has been primarily a matter of local concern for communities where they will be built. As Ottawa ramps up investment in hopes of dramatically scaling up AI compute capability across the country, the federal government is now wading into controversies involving data centres that have primarily played out at the municipal and provincial levels before now.

Article content

Article content

Here’s what you need to know about the concerns and debates involving these facilities.

Article content

Article content

What are AI data centres, and what makes them different from standard data centres?

Article content

An AI data centre is a facility designed to power artificial intelligence systems by storing data and running the massive computations needed to train and operate AI models.

Article content

Unlike traditional data centres, which mainly handle web hosting, cloud storage, email, or business software, AI data centres are built around high-performance processors such as graphics processing units and specialized AI chips. They require far more electricity, advanced cooling systems, and ultra-fast networking to manage the intense workloads created by machine learning.

Article content

AI data centres are optimized for parallel processing and large-scale data movement, making them significantly more energy- and hardware-intensive than conventional facilities.

Article content

There are just over 300 data centres operating throughout Canada, though most are located in or near major metropolitan areas.

Article content

Why is the federal government investing in AI data centres now?

Article content

When the Trudeau government announced the launch of the Canadian Sovereign AI Compute Strategy in December 2024, the intent was to develop “cutting-edge AI solutions across all sectors of our economy helps Canada remain a destination of choice for investment and top talent.”

Article content

Article content

Then in April 2025, the first budget by the Carney government proposed to provide over $925 million during a five-year period to “support a large-scale sovereign public AI infrastructure” throughout Canada. Updated last month, the AI Compute strategy indicates the government plans to “make strategic investments in public and commercial infrastructure.”

Article content

The goal of the “sovereign AI” compute strategy is to develop and maintain technical capabilities within Canada to harness the full potential of emerging digital automation technologies.

Article content

Michel Richer, president of Bell AI, told National Post that “data sovereignty” is primarily about “two pillars.” Those involve “ensuring that no actor outside of the country” either has the ability to access data generated within Canada or to stop Canadian computer systems from operating.

Article content

According to Richer, establishing data sovereignty within the country helps “guarantee that we are in full control over our access to data and full control over which systems are running or are prevented from running.”

Article content

Announcing the sovereign AI compute strategy, the federal government said the plan “will make strategic investments in public and commercial infrastructure to ensure that Canadian innovators, businesses and researchers have access to the compute capacity they need.”