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AI Data Center Boom Sparks Backlash Across Canada

Published: July 17, 2026
AI Data Center Boom
The image shows the logo of the first Global Dialogue on Artificial Intelligence Governance held in Geneva, Switzerland on July 6, 2026. The UN Secretary-General called for the establishment of a global governance system to shape artificial intelligence in a way that benefits humanity and warned against allowing the technology itself to "control" our future. (Image: Fabrice COFFRINI/AFP via Getty Images)

In June, Canadian Prime Minister Mark Carney unveiled the country’s artificial intelligence strategy. However, as the government moves aggressively to promote the development of the AI industry, controversy surrounding the sector is rapidly intensifying across the country.

Large AI data centers typically contain vast numbers of servers. To meet the computing demands of artificial intelligence models, they consume enormous amounts of electricity and rely on large cooling systems that operate around the clock.

According to available data, Canada currently has 143 announced or under-construction AI data center projects. On average, the new projects are 10 times larger than existing facilities.

Meta, for example, recently announced that it would invest C$13 billion to build a large AI data center in Sturgeon County, Alberta. Meta said the project is expected to create 3,000 construction jobs and 300 permanent operational positions, while generating approximately C$250 million in annual economic benefits.

However, data centers consume staggering amounts of electricity and water, create noise and light pollution, and may even drive up local electricity prices. As a result, growing numbers of people are not only voicing opposition on social media but also organizing to prevent large AI data centers from being built near their homes.

Drone view of a 49.5 megawatt data center under construction in Vernon, CA on Tuesday, July 14, 2026. (Image: Myung J. Chun / Los Angeles Times via Getty Images)

Significant opposition

From rural communities in Manitoba to Hamilton, Ontario, and the Greater Toronto Area, an increasing number of residents are opposing plans to establish large AI data centers in their neighbourhoods.

According to the The Globe and Mail, Christie Little, a resident of Île-des-Chênes, a small town outside Winnipeg, Manitoba, saw a social media post last winter saying that a company planned to build a massive AI data center near her home. The news immediately raised concerns.

In her view, the project could expose the community to constant fan noise, bright security lighting, and increased pressure on local electricity and water supplies. Little subsequently joined with her neighbors to launch a large petition aimed at preventing the project from being built in the area.

On June 4, Manitoba Premier Wab Kinew announced that the provincial government would lower the project’s priority for connection to the provincial electricity grid, effectively bringing the development to a halt.

Mary Brown, a resident of Milton, Ontario, said the community has large areas of developable land and is located near electricity transmission lines, making her concerned that it could also become a target for large data center projects.

“No one is telling the public how many [data centres] should be built, where they should be built, or where the electricity will come from,” she said. “It feels as though developers are treating this place like an all-you-can-eat buffet with an unlimited supply.”

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Government emphasizes opportunities as public calls for regulation

Despite the growing controversy, the federal government remains committed to advancing its AI strategy. Carney said artificial intelligence could create 250,000 new jobs in Canada over the next five years.

Carney noted that Canadians rank relatively low internationally in their knowledge of artificial intelligence, access to relevant training, and level of trust in AI. Therefore, he said, the government must not only promote technological development but also help the public build greater understanding and confidence.

In other words, he wants Canada to avoid remaining on the sidelines of the AI wave and instead actively embrace the technological revolution.

To meet the rapidly growing electricity demands of the artificial intelligence industry, the federal government plans to double the capacity of Canada’s electricity grid. At the same time, it has promised to establish stronger safeguards and regulatory mechanisms to address public concerns.

However, the prime minister did not specifically address the significant negative effects that AI data centers could have on residential communities or explain how those effects would be mitigated.

Protesters gather ahead of a Box Elder County County Commission meeting to decide whether to approve the construction of a large data center on May 4, 2026 in Tremonton, Utah. (Image: Natalie Behring/Getty Images)

AI anxiety spreads across Canada

Artificial intelligence is rapidly becoming integrated into Canadians’ daily lives. Nevertheless, Canadians remain far from optimistic about the technology’s overall impact, with many concerned that it will worsen inequality.

The latest data from the nonprofit Angus Reid Institute shows that Canadians are more skeptical than enthusiastic about artificial intelligence. The proportion of Canadians who use AI technology several times a day increased from 10 percent last November to 16 percent, but concerns remain widespread.

The data shows that 56 percent of respondents believe AI is more likely to increase social inequality, while only 7 percent believe it will promote greater equality. More notably, 68 percent disagree that everyone has an equal opportunity to benefit from artificial intelligence.

The survey further indicates that familiarity with AI does not necessarily eliminate concerns. Most respondents said they had at least some understanding of AI and its applications, suggesting that their skepticism does not simply result from unfamiliarity.

Regarding AI’s potential benefits, 43 percent of respondents said its greatest advantage is the ability to learn about or research subjects quickly, while 37 percent said it could make information more accessible.

However, 41 percent expressed concern that people would become less reliant on critical thinking and problem-solving skills, while 36 percent worried that it would become increasingly difficult to distinguish authentic information from AI-generated content.

By Li Xin, Vision Times