Sask. unveils data centre framework to ensure projects deliver ‘meaningful benefits’

The provincial government says its new data centre framework will ensure new projects deliver “meaningful benefits to Saskatchewan residents and businesses.”

The Government of Saskatchewan unveiled the framework on Thursday, noting that it was developed following feedback from businesses and the public.

The framework lays out principles to guide the assessment of future data centre projects, with a focus on Canadian ownership, support for Canadian data and AI sovereignty, creating jobs and partnerships in the province, industry experience, self-supplied power generation and “a centralized provincial intake process.”

Read more:

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• RM of Sherwood attempts to address concerns around AI data centre project
• AI data centre proposed for Moose Jaw won’t move ahead without power, says MLA

Minister responsible for Crown Investments Corporation Jeremy Harrison said the overarching objective when it came to the guidelines was data sovereignty and security, saying for those things to exist for Canada, the infrastructure needs to be in Canada.

“If it’s not going to be here, it’s going to be somewhere else, and it’s likely going to be in the United States, or it could be in other countries around the world,” said Harrison.

“We’re choosing Canada, (where the data would be) subject to Canadian law, subject to Canadian regulations. This is what makes sense for this province, and I think for the country.”

The top two requirements under the new framework are that any new centres contribute to Canadian data sovereignty and that the proponent be Canadian.

Harrison also put significant emphasis on the requirement that any new data centres would have to generate their own power.

The Bell AI data centre being built just outside Regina will get its electricity from SaskPower. The announcement on Thursday was made at that centre’s construction site, but Harrison said the Bell project was unique because the province was in a position to provide that power, and government wanted to get the project going quickly.

The text of the framework said new data centre will have to provide their own power to avoid taxing Saskatchewan’s power grid or displacing any capacity for interprovincial power exports. The framework also requires developers to determine and complete environmental impact assessments as necessary.

Any new projects will also need to include local partnerships and to provide significant investment and jobs.

When asked what significant would mean when proposals are being evaluated, Harrison pointed to the Bell project. With the projected spin-offs, he said it will create three to five jobs per megawatt hour of power allocation, which Harrison called enormous.

He said that would probably be the benchmark for future proposals, but each would be evaluated on its own merits.

And a central intake and adjudication process would evaluate any applications with the framework as a guideline.

Harrison said the government had taken a look at what other provinces are doing and looking for best practices. Most other provinces that have guidelines have some sort of restriction on power use, and Ontario’s recent framework also puts a priority on data sovereignty considerations.

SaskTel currently owns and operates six data centres for cloud storage, the province noted. There are more than 30 applications for data centre developments currently being evaluated under the new framework, which the province said will help to streamline and co-ordinate the process.

“People have different views on AI, and that is legitimate. I think the reality, though, is AI is here to stay, AI is an important part of our lives today, and it’s going to become increasingly more important,” said Harrison.

He said the government would be very discerning in its evaluations.

Randy Goulden, president of the Saskatchewan Urban Municipalities Association, said data centre development needs to be guided by clear and transparent principles.

“SUMA welcomes the release of Saskatchewan’s Data Centre Framework and looks forward to working with the provincial government to ensure municipal perspectives are reflected in its implementation,” Goulden said, quoted in a government statement.

“Municipalities are on the front lines of future data centre development and must have a seat at the table to help shape decisions and ensure local communities share in the benefits.”

Goulden’s comments were echoed by Bill Huber, president of the Saskatchewan Association of Rural Municipalities.

“The Data Centre Framework released today by the province provides consistency and clarity for future data centre development while respecting local decision-making,” Huber said in a statement.

“Rural municipalities will continue to exercise their established planning and development authorities, ensuring local priorities and community interests remain central to every proposal.”

The topic of data centres has been on the minds of many Saskatchewan residents ever since Bell Canada announced the creation of a 300-megawatt centre in the RM of Sherwood, southeast of Regina, in March.

While the provincial government said the centre is expected to generate as much as $12 billion in economic value for the province, some have raised concerns about water and power usage by data centres, as well as noise. A protest was held outside the RM’s office as councillors voted to move ahead with the project.

Bell has worked to address the concerns, noting that the centre will operate using a closed-loop cooling system and will generate its own power on the site. The centre is expected to be up and running in the first half of 2027.

A proposed data centre in Moose Jaw, meanwhile, is not moving ahead because it was denied the electrical capacity required to operate.

Saskatchewan Justice Minister Tim McLeod, who represents Moose Jaw North in the legislative assembly, said there was “a lot of misunderstanding” around the proposal, arguing that misinformation fuelled the concerns from the community.

The province noted that it considers Indigenous participation to be “key to the development of future data centre projects,” pointing to the agreement Bell signed with the George Gordon First Nation.

–with files from 980 CJME’s Lisa Schick and DiscoverMooseJaw’s TJ England