The development could transform the region, but its impacts remain uncertain
On Oct. 16, EverWind Fuels, a Canadian energy and infrastructure company, announced that it is constructing an 18,600-square-metre artificial intelligence (AI) data centre in Point Tupper, N.S. EverWind also announced that Anthropic, an American AI company, had signed a 20-year lease for the facility. These announcements have received significant public pushback, with one petition on Change.org reaching more than 24,000 signatures.
The petition’s main concerns about the data centre relate to the impact it may have on the environment, the power grid, and the community at large. In an email to The Argosy, Chris Benjamin, the associate director of energy programs at the Ecology Action Centre (EAC), said he is most concerned about “increasing energy rates, strain on the power grid, emissions (from our grid and from diesel), [and] significant freshwater waste.” Benjamin said there is “no demonstrable social benefit, just promises from dubious sources.”
In a statement released on Oct. 22, EAC cited possible instances of data centres hiking energy prices in Canada, saying, “Meta’s new data centre [in Alberta] is projected to increase power bills by as much as 25 per cent.” EAC continued, saying the proposed data centre has “an energy use equal to nearly one-sixth of our current electricity generating capacity.” According to Bioenergy Business, the proposed data centre is set to increase its energy usage to 420 megawatts, about a quarter of Nova Scotia’s current usage. Benjamin said this is “an incredible increase for one project that gives no benefits to Nova Scotia’s ratepayers.”
Facing criticism for its predicted energy usage, EverWind maintains it is “advancing with commitments to protect existing electricity ratepayers, safeguard local water resources, and deliver lasting community benefits.” Part of EverWind’s plan to protect electricity ratepayers involves a commitment where “EverWind will fund the electricity infrastructure costs attributable to the project.”
Benjamin also focused his concerns on possible power rate increases for Nova Scotians, saying increased rates could be especially dangerous given the elevated energy poverty rates in Nova Scotia. “Nova Scotia already has an energy poverty rate (where people are paying more than six per cent of income on energy costs) of 40 per cent, the highest in Canada. In Cape Breton, that rate is an astounding 54 per cent. We can’t afford to have rates go up a further 25 per cent due to one giant energy pig.”
Brenda Chisholm-Beaton, mayor of Port Hawkesbury, a town near Point Tupper in Richmond County, has a more optimistic view. In an email to The Argosy, Chisholm-Beaton said, “It is a potentially significant economic opportunity for the Strait area, and I believe it deserves serious consideration to fully understand the pros and cons.” However, while Chisholm-Beaton is willing to support the development, she emphasizes the need to understand the project’s implications. “An announcement of this magnitude is the beginning of a conversation, not the end of one,” Chisholm-Beaton said.
Chisholm-Beaton said the Town Council’s main concern is securing water supply for the data centre from Landrie Lake. “The Town has a responsibility with Richmond County – as joint owners and operators of Landrie Lake Water Utility – to protect the long-term security and sustainability of our water resource, and any significant new demand needs to be assessed in that context,” Chisholm-Beaton said. “The assessments and monitoring of wastewater, stormwater, noise, emissions, land disturbance, and other environmental impacts are also important. I’m not suggesting these issues are insurmountable. However, they must be demonstrated to be manageable, with enforceable safeguards in place.”
Chisholm-Beaton said the proposed data centre has the potential to benefit local businesses, saying “restaurants, hotels, retailers, service providers, transportation companies, tradespeople, and professional firms could all experience increased demand.” While this potential exists, Chisholm-Beaton said whether the benefits materialize depends on how transparent and cooperative EverWind is with local businesses. “There should be a commitment to local employment, skills development, apprenticeships, and opportunities for local and Indigenous businesses.” Chisholm-Beaton said EverWind’s commitments need to be “measurable, transparent, and enforceable.”
On the other hand, Benjamin has a different view on the proposed data centre’s effects on the local economy. “[EverWind] promise[s] 215 permanent jobs (at a cost of $10 billion, which is $46.5 million per job – seems like we should aim higher than 1 job per $46.5 million invested),” Benjamin said. Benjamin compared this impact to how EAC has determined a greenhouse gas reduction project would contribute to the economy, saying that its project “would create 15,000 jobs annually, most of them unionized jobs in the trades.”
Chisholm-Beaton said, “the question isn’t simply whether a $10 billion project can be built in our region. The real question is can this proposed data centre be built here to operate responsibly, and sustainably in accordance with Canada’s established principles for responsible data centre development, and ultimately, bring lasting benefits to the people of this region?”