Canada’s AI strategy falls short on protecting communities

TORONTO | Traditional Territory of the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat Peoples – Canada’s new artificial intelligence strategy announced today fails to address the harm to communities and local environmental impacts associated with rapid data centre expansion.

The announcement comes while communities across the country are strongly resisting local data centre proposals, calling for more public input, and demanding accountability from all levels of government and tech companies. From Kamloops to Red Deer to Hamilton, people are increasingly concerned about data centres driving up residential energy bills, increasing air pollution in their neighbourhoods, and wasting fresh water.

In a news release, Prime Minister Mark Carney said, “AI is here. The question is whether it will improve the lives of all Canadians or benefit only a few.” 

Data centres, which are fundamental to AI infrastructure, are known to drive up energy costs in the neighbourhoods closest to them and beyond, as developers shift infrastructure costs onto rate-payers and spike local demand. Data centres that rely on fossil fuels for power are linked to increased air pollution. Worldwide, the U.N. has warned that data centre water needs are expected to equal that of 1.3 billion people by 2030.

“This strategy does not answer the Prime Minister’s own question about whether a huge AI ramp up will benefit all Canadians. Not only are there very real environmental impacts for people living near large data centres, the increase in energy demand is poised to put a massive strain on our electricity grid,” said Stand.earth Senior Campaigns Director Liz McDowell. “The government has the opportunity to align new AI data centres with the goals of its Clean Electricity Strategy and help keep electricity bills affordable at the same time, but they need to require the tech companies to bring their own energy – and make sure it’s renewable – so that Canadians don’t end up footing the bill.”

An Angus Reid Institute survey of Canadians found that “68% would oppose a large AI data centre near their home.”

“The federal AI Strategy fails to address the burning question of how this proposed quadrupling of AI uptake will impact communities’ health, homes, and livelihoods. In the U.S., Europe, and in communities worldwide, tech giants are taking the quickest possible route to AI dominance with drastic growth in gas, diesel, and even coal power generation, while trampling over community concerns,” said Stand.earth Senior Corporate Climate Campaigner Rachel Kitchin. “The only way new data centres should be built is with genuine community consultation and a requirement for tech giants like Microsoft to be good neighbours – pay its taxes, pay its bills, and not pollute the land and water. Otherwise today’s AI strategy will create far more harm than good.”

The announcement also comes the day after sixteen of Canada’s largest environmental and conservation organizations denounced the Carney government’s broader climate and nature policy rollbacks.

Earlier this year, Canada’s National Observer reported that Artificial Intelligence Minister Evan Solomon did not meet with environmental groups while developing the AI strategy, but met with energy and mining company representatives on the matter.

Meanwhile, in the United States, at least one major tech company, Microsoft, has signalled it is walking back it’s own climate commitments to facilitate its rapid data centre expansion in that country, while building city-sized behind-the-meter gas power generation to power its data centres as fast as possible.

“It’s clear that we can’t rely on big tech to choose an AI rollout that puts people first,” Kitchin said. “This is a critical moment in how Canada chooses to grow and adopt new technologies. Canada can show true international leadership and a real AI for all by prioritizing community consent, mandating clean energy, protecting water, and ensuring that Canadians don’t end up paying tech billionaires’ energy bills.”

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Media Contacts

Rachel Kitchin, Senior Corporate Climate Campaigner: rachel@stand.earth

Liz McDowell, Senior Campaigns Director:  liz@stand.earth

Stand.earth Communications Department: media@stand.earth