Today's digest covers three key topics: building "sovereign" AI data center clusters in British Columbia, the premier's recognition of AI's dual nature as both threat and opportunity, and Vancouver's ranking as one of Canada's least affordable cities to buy a home.
Plan to create a "sovereign" cluster of AI data centers in Kamloops and Vancouver
The federal government of Canada and telecom giant Telus announced a partnership to establish a network of several data centers in British Columbia for artificial intelligence needs. The project, announced by Minister of AI and Digital Innovation Evan Solomon, is intended to strengthen the country's so-called "sovereign computing capacity." That means data from Canadian companies and researchers will be stored and processed within Canada rather than flowing abroad. As CBC News reports, the plan includes expanding Telus's existing data center in Kamloops and constructing two new facilities in Vancouver. The first will be located in the former Hootsuite headquarters in the Mount Pleasant neighborhood, and the second at 150 West Georgia Street, with the latter scheduled to come online in 2029. A key element of the initiative is a focus on "green" energy. Telus says the facilities will be powered 98% by clean hydroelectricity, and excess heat will be used to heat 150,000 homes. The company also promises a 90% reduction in water use compared with traditional data centers and is exploring using reclaimed water from BC Place stadium. Telus CEO Darren Entwistle emphasizes that the project demonstrates Canada's ability to lead in the AI race without sacrificing the environment.
However, behind the façade of bold promises there is growing public concern. Despite upbeat statements from politicians, including Vancouver Mayor Ken Sim, who called the data centers "world-class facilities," plans to build such infrastructure are already provoking protests in other provincial cities. For example, residents of Nanaimo are opposing a local data center out of fear it will consume tens of thousands of liters of water daily. British Columbia Green Party leader Sonia Furstenau has accused authorities of a "build first, regulate later" approach. She is calling for a moratorium on new data centers until strict environmental standards are put in place. "We are seeing projects bypass and sidestep public concerns, especially around the depletion of fresh water reserves. Local watershed protection groups in Kamloops are sounding the alarm, which is understandable given the region is already suffering from severe droughts and extreme heat," Furstenau said. She also expressed deep skepticism about Telus's environmental claims, noting that fast-tracked approvals without comprehensive environmental impact studies make it impossible to verify those claims. Critics reasonably ask: why can an AI data center avoid environmental assessment and community consultation procedures while building basic public transit takes decades?
The concept of "data sovereignty" is central here, and it's more complex than it seems. The aim is for Canadian startups, universities and government institutions to have access to powerful computing resources within the country without handing sensitive information over to American or Chinese giants. The project will start with power consumption of 85 megawatts, planned to increase to 150 megawatts by 2032. Those are huge numbers, and they explain environmentalists' concerns. For comparison: a 2023 study showed that generating 10 to 50 average responses in an AI chat like ChatGPT requires about half a liter of water. Another study by the International Energy Agency estimated global water consumption by data centers for cooling alone at 140 billion liters in 2023. The British Columbia government has its own response to these risks: starting January 2025, a policy requires companies to compete for a 400-megawatt electricity quota over the next two years. Priority is given to projects that guarantee data sovereignty, environmental benefits and Indigenous participation. Minister of Jobs, Economic Development and Innovation Ravi Kahlon called Telus's initiative "a beacon of hope" for communities that want computing power without harming the environment. Whether this project will become a model or exacerbate the conflict between technological progress and environmental protection remains to be seen. For now it's clear: the race for AI infrastructure in British Columbia is entering a decisive phase, and the stakes are very high.
Premier of British Columbia: AI is both a threat and a huge opportunity for the province
British Columbia Premier David Eby spoke at the Web Summit conference in Vancouver, delivering remarks that conveyed cautious but firm optimism about AI development. Eby acknowledged that the province has already faced the darkest manifestations of the technology, mentioning the tragedy in Tumbler Ridge where, he said, an attacker used ChatGPT to plan a mass shooting that claimed eight lives. Despite this, the provincial leader called himself a "huge optimist" about AI, stressing that the province sees both "opportunities and threats" from the adoption of the technology.
Eby's speech came the day after telecom giant Telus and federal AI minister Evan Solomon announced plans to build a cluster of three AI data centers in the province. The premier underscored that BC Hydro, the provincial public power utility, is the province's trump card. Thanks to BC Hydro, the province has cheap and clean electricity, which gives it a "massive advantage" in the race to host energy-intensive AI projects.
Eby warned that because of low rates, demand for electricity from industry could become "overwhelming" and called for cooperation with the federal government to build sovereign AI capacity. He called this a matter of "national importance." According to the premier, companies are actively seeking the best conditions worldwide, and financial support from both the federal center and the provincial level helps keep these tech businesses in British Columbia.
Telus's plans include building two data centers in Vancouver and one in Kamloops. Their combined power consumption is expected to reach 150 megawatts by 2032. To put that in perspective, this is roughly equivalent to about 12–14 percent of the capacity of the Site C dam currently under construction. In January, the provincial government launched a competitive process for companies that want to implement energy-intensive tech projects. Under this program, 300 megawatts are allocated every two years specifically for AI needs and another 100 megawatts for data centers. These measures aim to balance rapid technological progress with questions of energy security and ethics, especially in light of recent tragic events.
Vancouver named one of Canada's least affordable cities to buy a home
Financial magazine MoneySense and real estate agency Zoocasa conducted a large study of 44 Canadian housing markets, evaluating average home prices, price growth dynamics and local economic indicators. The results were discouraging for British Columbia residents. While the best cities to buy a home were named Fredericton, St. John's and Edmonton, Vancouver ranked only 40th out of 44, receiving a score of 1.93 out of five stars. Notably, the situation varies within the province: Vancouver Island ranked highest at 15th place, Victoria came in 32nd, Chilliwack was 41st, and the Fraser Valley finished dead last at 44th.
The main reason for this standing is the sky-high cost of housing. The average home price in the Greater Vancouver area is CAD 1,155,575, which is nearly CAD 800,000 more than in the top-ranked Fredericton, where the average is CAD 344,467. To appreciate the scale: Fredericton is forecast to see a 10% price increase over the year and 74% over five years, while Vancouver is expected to see a negative three percent change over the next three years and only a 24% increase over five years.
Natasha MacMillan, head of MoneySense, commented: "Notably, Vancouver, one of the most difficult markets to break into, ranks among the lowest on our list for purchase conditions. This reflects persistent housing affordability challenges, with prices that far exceed Canadian averages." Equally telling are the figures for down payments. If the average detached home in Vancouver costs CAD 1,835,900, the minimum 20% down payment would be about CAD 367,180. It is important to clarify: for properties priced at CAD 1.5 million or more, Canadian rules require a full 20% down payment, whereas for lower-priced homes buyers must pay mortgage default insurance, the premium for which is often added to the principal.
As Brittany Kostova of Zoocasa notes, housing affordability remains the main barrier for Canadians entering the market after many years of price increases. "This is changing where people decide to invest. In 2025 more buyers are expanding their searches beyond major urban centers toward markets that offer a strong sense of community and excellent access to nature," she says. This trend is also supported by the ranking data: more affordable cities in the east and central parts of the country attract buyers not only with lower prices but also with higher rates of price growth. In the context of MoneySense's ranking, Vancouver looks like a market where high entry barriers combine with uncertain short-term growth prospects, making it a less attractive investment compared with the rest of Canada.
