The rise of artificial intelligence is driving a wave of new data centres that power digital technologies. This coming boom will strain energy and water resources. Governments must be ready with legislation and policy that protects the public interest, not corporate profits.
Data centres are large warehouses that draw enormous amounts of energy to run the servers and networking equipment powering digital technologies.
Ontario is the first province to introduce legislation governing new and bigger data centres connecting to the electricity grid. There are already 112 data centres in the province. Bill 40 opens the door to the provincial government paying data centres’ electricity bills with public funds.
CUPE is concerned this would prioritize corporate interests over public interests. All governments should use these guiding principles to develop legislation or policy governing data centres.
- Do not subsidize data centres
The public sector should only provide subsidies when there is a public gain. Data centres housing AI servers are buildings that occupy a large physical footprint. They require millions of liters of water to function and an undisclosed but enormous amount of energy. These centres also expel tens of thousands of tons of carbon dioxide into the atmosphere and do not create many jobs in the communities that host them. Finally, subsidies could drive up rates for other power users.
- Support municipal water utilities
Data centres need treated water to keep equipment cool. Centres should be required to use water meters so municipalities can monitor and charge the full cost of a centre’s water consumption. If metering is not possible, the provincial government should financially support municipalities with water utilities if they are struggling to meet a data centre’s water demands.
- Divest from American technology
Governments should prioritize digital sovereignty by becoming leaders in public digital infrastructure that is operated in the public interest. This infrastructure, including cloud computing, AI, and digital platforms, could improve the quality of public service delivery and protect sensitive private data. Developing public digital infrastructure promotes greater transparency, accountability, and cost efficiency. It also helps ensure that intellectual property stays in Canada and is used for the public good.
- Consult fully with all affected groups
Governments must fully consult on any new project, not cut so-called “red tape” to fast-track the building of data centres and their connection to the grid. Neighboring communities, including Indigenous nations, should be consulted before construction begins. Any new large-scale infrastructure project requires community consent, transparency and accountability to operate. to operate.