A Vancouver city councillor is pushing for tougher regulations on artificial intelligence data centres, describing the current oversight as a 'Wild West' environment. The move comes as Telus moves forward with plans to build two new AI data centres in Vancouver and expand an existing facility in Kamloops.
Councillor cites lack of rules
Councillor Rebecca Bligh introduced a motion calling for a moratorium on new AI data centre approvals until the city develops comprehensive zoning, environmental, and community impact regulations. 'We have no clear rules governing these massive facilities,' Bligh said. 'They consume enormous amounts of energy and water, yet we're treating them like any other commercial development.'
The motion, which will be debated at the next council meeting, also requests staff to report back on potential health and safety concerns, including noise, heat, and electromagnetic emissions from the data centres.
Telus expansion plans
Telus announced in June that it would invest $1.3 billion to build two AI-optimized data centres in Vancouver and expand its Kamloops facility. The projects are part of a broader push by telecom companies to meet growing demand for cloud computing and AI services. A Telus spokesperson said the company is committed to working with municipalities and following all existing regulations.
According to city documents, the Vancouver facilities would be located in industrial zones and are expected to create hundreds of construction jobs and dozens of permanent positions. However, critics argue the energy and water consumption could strain local resources.
Environmental and community concerns
Data centres are known to be energy-intensive, with some studies estimating they could account for up to 4% of global electricity consumption by 2030. In Vancouver, where the city aims to be carbon neutral by 2050, the new centres could complicate climate goals. 'We can't afford to let these facilities operate without oversight,' said Bligh. 'We need to ensure they use renewable energy and minimize their environmental footprint.'
Residents in nearby neighbourhoods have also raised concerns about noise from backup generators and cooling systems, as well as potential impacts on property values. A public hearing on the matter is scheduled for August.
Council divided
The motion has divided city council. Some councillors support stricter rules, while others worry about stifling economic development. Councillor Sarah Kirby-Yung said she is 'cautiously supportive' of the moratorium but emphasized the need to balance innovation with regulation. 'We don't want to chase away investment, but we also need to protect our communities,' she said.
Mayor Ken Sim has not yet taken a public position but has previously expressed support for Vancouver becoming a hub for technology and innovation. The debate comes as other Canadian cities, including Calgary and Montreal, also grapple with how to regulate the rapidly growing data centre industry.
