Major AI Data Centre Planned for Île-des-Chênes, Manitoba

Plans are underway for Manitoba’s first major AI data centre, proposed by the corporate tech collaborative of Jet.AI and Consensus Core Technologies Inc. The formal announcement was made on December 4, 2023, with the new facility expected to be located in Île-des-Chênes (IDC). This project, known as the Midwestern Project, is set to be built on a substantial 350 acres of land on the north side of IDC, and aims to address the increasing demand for AI and high-density computing resources across North America.

Jet.AI, a Nevada-based provider specializing in GPU infrastructure and AI cloud services, has partnered with Vancouver’s Consensus Core Technologies to form Convergence Compute. Together, they plan to open at least two AI data centres in Canada, with the Midwestern Project already attracting interest from various hyperscale tenants eager for the necessary infrastructure to support AI services at scale.

The project benefits from favorable local energy resources and governmental support. As noted by Mike Winston, founder and CEO of Jet.AI, “The energy and natural resources we need are already present in abundance at our sites.” He emphasized the importance of not only having locations for data centres but also ensuring energy commitments to operate them effectively. The provincial government’s recent endorsement of local data storage initiatives aligns with this vision, aiming to reduce dependency on U.S.-based tech giants and enhance privacy protections under Canadian law.

In a speech to the Manitoba Chamber of Commerce, Premier Kinew expressed the need for increased domestic capacity, stating, “How do we keep your privacy so that our kids and grandkids will be able to develop as individuals?” He underscored that reducing the transmission of data to the U.S. is essential for maintaining that privacy.

The Rural Municipality (RM) of Ritchot has taken a cautious approach, with a communications coordinator indicating that no formal proposals have been presented to the council yet. “Until something is presented, it would be premature for us to provide a comment,” they stated.

Strategic Location and Energy Accessibility

Jet.AI’s promotional materials describe IDC as a “Goldilocks site” for data centre development, highlighting the rarity of finding a large tract of land near critical energy infrastructure. The designated area is bordered by Arnould Road and Highway 59, with Mondor Road and Highway 405 defining its northern and southern boundaries. This strategic location is complemented by the proximity to a Manitoba Hydro substation and one of Canada’s main natural gas transmission stations, TC Energy, ensuring reliable energy sources for the data centre.

Data centres are notorious for their high energy demands, particularly for cooling systems necessary to manage heat generated by advanced computing equipment. The Midwestern Project is expected to require six operational turbines to function effectively. “As AI compute demand accelerates, energy-advantaged sites like this are becoming increasingly difficult to secure,” Winston added, emphasizing the unique advantages of the IDC location.

Adding to the site’s appeal is the availability of high-speed fibre internet, which is crucial for handling the significant bandwidth demands of large-scale computing operations. Wayne Lloyd, CEO of Consensus Core, stated, “This site aligns with the long-term compute and energy profile the industry is moving toward.”

Progress and Future Prospects

Convergence Compute has achieved significant milestones, including securing the land for the Midwestern Project. According to a press release from Jet.AI on November 14, 2023, they are nearing completion of the Transmission Power Load Study application and are in discussions with natural gas utility suppliers to ensure adequate energy flow for the proposed turbines. Meanwhile, plans for a second facility, referred to as the Maritime Project, are also underway, anticipated to be situated along the east coast.

A report by Norton Rose Fulbright highlights Canada’s potential as an attractive location for AI data centre development due to its robust energy infrastructure and favorable policy environment. With AI and cloud services on the rise, the report indicates that data transmission alone accounted for between 1 percent and 1.4 percent of global electricity consumption in 2024, a figure expected to more than double in the coming years. This surge in demand has prompted tech companies to seek long-term contracts with local energy providers, often at more competitive rates than those available in other developed nations.

Moreover, the Canadian federal government’s Canadian AI Compute Strategy, launched late last year, aims to allocate $2 billion over the next five years to stimulate private sector investment and enhance public supercomputing infrastructure, further solidifying Canada’s position in the global AI landscape.

While the prospects for AI data centres in Canada appear promising, concerns about environmental impacts persist. Water consumption for cooling is a significant issue, with AI data centres often using vast quantities of drinking water. According to Water Security News Wire, the industry is poised to surpass other water-intensive sectors, raising alarms over potential water scarcity in affected regions.

The urgency to address these challenges is growing, as seen in the increased scrutiny of data centres’ water usage in various jurisdictions. In the European Union, new regulations mandate reporting on water and energy consumption for data centres. This regulatory shift reflects a broader recognition of the environmental implications associated with the rapid expansion of data centre infrastructure.

As the Midwestern Project moves forward, the conversation around sustainable practices and energy efficiency will be vital in shaping the future of AI data centres in Canada and beyond.