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A controversial data centre proposal near Regina has sparked questions about power, infrastructure and public benefit, but Saskatoon’s chamber of commerce says the city should not close the door on the industry.
Greater Saskatoon Chamber of Commerce CEO Jason Aebig said future data centre proposals should be judged individually, rather than treated the same as large-scale projects facing pushback elsewhere.
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“I think there’s an adage somewhere that says, if you’ve seen one data centre, you’ve seen one data centre,” Aebig said on The Evan Bray Show. “They come in all shapes and sizes.”
The comments come after Bell Canada is building a 300-megawatt artificial intelligence data centre in the Rural Municipality of Sherwood, just outside Regina. Bell has said the project is part of its AI Fabric network and is expected to be built in stages, with the first phase expected to come online in the first half of 2027.
The Regina-area project has drawn criticism from some people concerned about power use, environmental impacts and whether the public has been given enough information.
Aebig said those concerns should be taken seriously, but he said that does not mean Saskatoon should avoid the sector altogether.
“Notwithstanding some of the controversy that we’ve seen, certainly in the U.S., in the southern U.S. in particular, on these hyperscale mega data centres, and then most recently the one announced in Sherwood, just south of Regina, we have to keep an open mind on this,” he said.
Aebig said Saskatoon already has experience with smaller facilities.
“Some listeners would be surprised to know that we already have two operating right within the city limits operated by SaskTel,” he said.
According to website DataCenterMap, SaskTel operates a Tier III on 66th Street and a 4,900 square foot centre on 2nd Avenue North.
The website also says Colliers International is considering converting a former cannabis farm in Corman Park to a data centre. It also says MSP Corp Prairies operates a centre on Research Drive and Krakken IT Services operates another on 21st Street E.
Aebig said he is not calling for a project that would strain the city’s power supply.
“I don’t think anyone is advocating for any kind of hyperscale project that would rob local businesses and residents of the power they need to operate their homes and businesses,” Aebig said.
Instead, he said data centres should be viewed as infrastructure that can support other parts of the economy.
“It is a critical piece of infrastructure. It is being seen as such. It’s very critical to economic development,” he said.
Aebig said the jobs inside a data centre are only part of the equation.
“Not the centre itself, which generally employs a handful of people, but it’s the downstream effect on employment and industry development that makes everything else possible,” he said.
When asked whether there are any possible Saskatoon projects close to being announced, Aebig said there is plenty of speculation, but nothing firm.
“Lots of talk,” he said. “Everybody’s got speculation about projects that may or may not come on stream.”
“I’ve been in this job long enough to know that you don’t really know anything until the money is on the table, the partners are assembled, and there’s a project to announce.”
An artist’s rendering of what a building housing a small nuclear reactor in Saskatchewan could look like. (SaskPower/Submitted)
Energy future a consideration
Power has been one of the major questions surrounding large AI data centres, with some projects requiring major electricity capacity. Aebig said Saskatchewan’s energy future could help determine what is possible.
“In Saskatchewan, I think the future looks nuclear,” he said.
“I think there is any number of opportunities to integrate small SMR onto sites where we have data centre infrastructure, which means it’s drawing power from that source. It’s not necessarily plugging into the wider grid that a lot of businesses and households rely on.”
Aebig said the debate around artificial intelligence often focuses on social media and online content, but he said the technology has uses in sectors that matter to Saskatchewan.
“AI isn’t about memes and social media,” he said.
“When you look at what AI technology can do for potential partners and end users, like Crown corporations, hospitals, universities, municipalities, all of which are trying to find ways to get smarter in the way that they operate and work more cost effectively.”
He also pointed to research, Indigenous governments and businesses, agriculture, energy, manufacturing and mining as sectors that could use AI tools.
“All of them are looking to either develop their own AI tools or leverage what’s out there,” he said.
Aebig said Saskatoon should look at any future proposal based on its own merits.
“This is not something that is going to go away, but it’s also not something that we need to be afraid of,” he said.
“There are a lot of social good and private good that comes with the development of this technology and infrastructure.”
He said the decision should come down to whether a project makes sense for the community.
“If it’s not a good fit for our community or economy, we just don’t do it,” Aebig said. “But if it is a good fit, why would we pass up the opportunity to leverage it and get stronger overall?”
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