Federal government planning to build data centre in National Capital Region

Federal government planning to build data centre in National Capital Region

Advance notice on contracting site estimates cost of 60 megawatt facility at up to $1.8B

The federal government has issued advance notice that it's planning to design and construct a data centre facility within the National Capital Region.

The notice posted on the MERX contracting site said the data centre comes with a price tag of $1.5 billion to $1.8 billion, and would support the government's "mid to long-term objectives related to operations, security, and technology modernization."

The project would use 60 megawatts, enough energy to power at least 30,000 homes.

The advance procurement notice is not a request for proposals, but allows interested parties time to obtain the necessary clearances, the notice said. The actual contract is expected to be posted early next year.

"There is no guarantee that this contract will proceed or that security clearances will be granted within the anticipated timelines or at all," the notice reads.

Notice of the new project comes over a month after Ottawa city council passed a motion to have city staff study and develop a framework for assessing data centres based on their size and impact. Staff are expected to report back to council early next year.

Other cities in Ontario including Oakville and Mississauga have imposed one-year moratoriums on new data centres as they study the issue.

Meanwhile, Ontario unveiled its new data centre framework in August. It bases approvals on three pillars: economic development, data protection and sovereignty, and community investment and public confidence.

Oakville becomes first Ontario municipality to enact 1-year moratorium on data centres

Mississauga city council votes to block data centre projects for 1 year

Ontario unveils new data centre framework amid calls for moratoriums

What mayoral candidates have said

The issue of data centres has arisen during the current municipal election campaign.

Incumbent mayor Mark Sutcliffe called it a complex issue that requires a responsible approach. He also raised the issue of data sovereignty, suggesting it might be preferable to store data within Canada as opposed to the U.S.

"Do we want our data being stored in the United States of America, especially right now with Donald Trump as president? I don't think anybody wants that," he said during a mayoral candidates' debate on Sept. 17.

"We need to move forward in a responsible way and make sure that we are finding solutions, technological solutions, that do not have an impact on neighborhoods and communities."

Candidates Neil Saravanamuttoo and Jeff Leiper said they would impose a moratorium on such projects

"I supported the council motion to study the issue further, but I don't think it goes far enough," Leiper said at the same debate. "We have mechanisms to put a pause while we study it properly, and I'll use those tools."

"The worry is that all of us would pay for it. We would be effectively subsidizing these AI companies, and that's totally unacceptable," Saravanamuttoo said, also on Sept. 17.

Alex Lawson criticized the idea of a moratorium at a Sept. 24 debate.

"[Leiper and Saravanamuttoo] say that no data centres are being built here, but you want to use AI and and data for everything. But you would restrict our ability to grow our tax base by not letting them in here," he said.

Nathan Fung is a reporter with CBC Ottawa, with a strong interest in covering municipal issues. He has previously worked as a reporter in Hamilton and Edmonton. You can reach him at nathan.fung@cbc.ca