Prince George Council eyes rules for future data Centres

Councillor Cori Ramsay said discussions have already begun at higher levels of government about how municipalities should approach data centre development.

“The Federation of Canadian Municipalities had been consulted and the federal government seems to have done some engagement around the question of data centres and what municipalities and local governments want to see as we consider these zoning permits,” Ramsay told council. “To have some sort of consistency across the board.”

The timing is significant as data centres increasingly sit at the centre of global efforts to expand computing capacity needed to support artificial intelligence technologies. Across North America, communities are weighing the promise of investment and job creation against concerns surrounding energy consumption and environmental impacts.

Councillor Garth Frizzell, who brought forward the resolution alongside Councillor Brian Skakun, said local governments are still trying to determine what authority they have when such projects are proposed within their boundaries.

“There’s a lot of uncertainty about what data centres mean when they come into your community,” Frizzell said. “We see a lot of the negatives. We see a lot of the challenges. What we don’t know is what a municipality can do to regulate them.”

That uncertainty is one of the key reasons council wants a detailed review before facing any major development applications.

Prince George already hosts one data centre and Frizzell noted there are indications another company may be interested in establishing operations in the city.

He said a combination of infrastructure improvements and geographic advantages has significantly changed Prince George’s attractiveness to the industry over the last several years.

“Prince George is only four or five years into having full redundancy for our high-speed internet access,” Frizzell said.

Prior to a connection through Chetwynd being established, he said the city was not considered an attractive location for large-scale data facilities because reliability is a critical requirement for operators.

“Up to the time the connection to Chetwynd came in, we weren’t really attractive to data centres,” he said. “So now we’re in the new world and now we’re seeing it’s quite an attractive place.”

Frizzell pointed to comparatively lower land costs and the region’s cooler climate as additional factors that could make Prince George competitive when companies look for locations to build and operate large computing facilities.

However, council also signalled that it does not intend to approach the issue solely from an economic development perspective.

The resolution specifically calls on administration to examine how data centres affect electricity demand, water use and municipal infrastructure. Council wants to understand what measures can be taken to mitigate those impacts and ensure local taxpayers are protected from potential cost increases tied to utility or infrastructure upgrades.

Another focus of the study will be determining how communities can secure meaningful economic returns from data centre developments.

Council members want to explore ways agreements can be structured so benefits such as tax revenue, partnerships and local participation are clearly defined and measurable.

That concern reflects a broader debate taking place in many jurisdictions, where some data centres have been criticized for placing heavy demands on utility systems while creating fewer long-term jobs than traditional industrial developments.

Ramsay successfully introduced an amendment to the resolution that would add public consultation to the list of considerations being examined.

She argued that community engagement should be part of the conversation as council develops policies and evaluates future proposals.

“I think the notice of motion from Councillor Frizzell and Councillor Skakun was ‘if we are to consider these, what policies have other jurisdictions developed?’” Ramsay said.

“I think my addition was, if we are considering other policies and tools we should also consider engagement with the public because there’s been quite a bit of negative sentiment around it.”

Public concern about data centres has become increasingly visible in national discussions, particularly around resource consumption and the rapid expansion of facilities needed to support AI technologies.

By adding consultation requirements to the review, council is signalling it wants residents to have opportunities to provide input before decisions are made on future developments.

The final resolution received council’s support and administration is now expected to prepare a report examining available regulatory options and limitations.

That report will help define the municipality’s role in shaping future projects and establish what measures are available to protect community interests while encouraging responsible economic development.

For Prince George, the discussion marks a recognition that the city’s growing digital infrastructure and strategic advantages may attract increased interest from data centre operators in the years ahead.

Rather than waiting until major proposals arrive, council has chosen to begin developing a framework now, aiming to better understand both the opportunities and challenges associated with an industry that is rapidly expanding across North America.

The forthcoming report is expected to provide council with a clearer picture of what authority local governments have over data centre development and what policies may be needed to balance economic growth, environmental concerns and public expectations.

by Cheryl Jahn

Prince George Council eyes rules for future data Centres

What's Trending