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AI Today: The Data Centre Boom

AI Today: The Data Centre Boom Is Becoming the Next Big AI Story

September 17, 2026

Artificial intelligence continues to move at remarkable speed, but the biggest AI story may increasingly be happening behind the scenes.

It is the enormous expansion of the data centres, electricity systems, computer chips and infrastructure required to run AI.

From Silicon Valley to Ontario and Saskatchewan, governments and technology companies are trying to answer a basic question:

Where will all the power and computing capacity needed for AI come from?

AI Data Centres Become a Major Infrastructure Story

The latest developments show just how quickly the AI infrastructure industry is growing.

AI infrastructure company Crusoe announced September 17 that it had raised US$3.9 billion, giving the company a reported valuation of approximately US$30.9 billion.

Crusoe has shifted from its early cryptocurrency focus toward building specialized infrastructure and data-centre capacity for artificial intelligence.

The investment demonstrates how investors increasingly view AI computing infrastructure as an industry in its own right.

Google, Nvidia and Anthropic Look for More Electricity

One of the most important developments involves the electricity grid.

Google, Nvidia and Anthropic, together with Emerald AI and other organizations, are working on an initiative intended to identify as much as 100 gigawatts of grid capacity that could eventually be used for additional AI data centres.

The challenge is becoming clear.

Building a data centre is no longer simply a matter of finding land and constructing a large building. Developers also need enormous amounts of reliable electricity and access to transmission infrastructure.

AI companies are therefore becoming increasingly interested in how data centres can adjust their electricity consumption when demand on the grid is high.

Data Centres Meet Resistance

The rapid expansion is also creating controversy.

In San Jose, California, residents and environmental groups are questioning the impact of proposed AI data centres on electricity demand, water use, pollution and backup generators.

City officials point to potential economic benefits, including tax revenue and employment.

The debate illustrates a much larger issue facing communities around the world:

Who pays for the infrastructure required to support the AI boom?

The question is particularly important where large data centres require major upgrades to electrical grids.

Canada Enters a New AI Infrastructure Era

Canada is also becoming a major participant in the data-centre race.

The federal government recently introduced Canada’s Responsible Data Centre Development Principles, with major technology and infrastructure companies among the signatories.

The principles emphasize responsible development, protection of electricity ratepayers, responsible use of water and energy, transparency and benefits for communities.

This comes as Canada’s demand for AI computing infrastructure increases.

Saskatchewan Announces Huge AI Expansion

One of Canada’s biggest recent AI infrastructure announcements came from Saskatchewan.

Bell Canada and the Saskatchewan government announced an expansion of the Bell AI Fabric that would create a 1.2-gigawatt AI infrastructure hub in the Regina area.

The companies and governments involved say the project represents more than $50 billion in capital investment and could create thousands of jobs.

The project is intended to strengthen Canadian computing capacity and data sovereignty while taking advantage of Saskatchewan’s energy resources.

It is an example of how AI is beginning to connect technology policy with energy policy, economic development and national security.

Ontario Faces Its Own Data-Centre Debate

Ontario municipalities are also dealing with proposals for large AI data centres.

Several municipalities have introduced or considered temporary pauses while they examine issues including:

  • Electricity demand
  • Water consumption
  • Noise
  • Land use
  • Backup generators
  • Environmental impacts
  • Infrastructure costs
  • Community benefits

Oakville has approved a temporary moratorium while it studies the issue.

Sault Ste. Marie is considering restrictions on data centres requiring more than 50 megawatts of electricity.

Toronto, Ottawa and other municipalities are also examining how their planning policies should deal with the rapidly changing industry.

A proposed 400-megawatt AI data centre project in Sault Ste. Marie involving Algoma Steel and Red Jar Energy Partners illustrates the enormous scale of some of the projects now being considered.

Why Electricity Matters So Much

Modern AI systems require enormous computing resources.

Those computers require electricity.

They also generate heat, meaning sophisticated cooling systems are required.

That creates a chain reaction:

More AI → more computing → more data centres → more electricity → more generation and transmission capacity.

The result is that the AI race is increasingly becoming an energy race.

Countries with abundant, reliable and relatively clean electricity could find themselves in an advantageous position as AI infrastructure expands.

Canada’s hydroelectric resources, nuclear generation, natural gas, renewable energy potential and large land base therefore become important parts of the country’s AI strategy.

The AI Infrastructure Supply Chain

The AI economy now stretches far beyond companies developing chatbots and AI models.

It includes:

Computer chips

Companies need increasingly powerful processors and accelerators to train and operate AI systems.

Data centres

Large facilities house the computers that perform AI calculations.

Electricity generation

Data centres require enormous amounts of reliable power.

Transmission

Electricity must be transported from generating stations to large computing facilities.

Cooling

AI processors generate substantial heat and require advanced cooling systems.

Backup power

Data centres need reliable backup systems to maintain operations during electrical interruptions.

Fibre and communications

Huge amounts of information must move rapidly between computers, data centres and users.

Construction

Billions of dollars are being invested in buildings, electrical equipment and supporting infrastructure.

AI Safety Remains Another Major Story

Infrastructure is not the only major AI development.

OpenAI has disclosed several incidents involving unexpected or concerning behaviour by AI models and has introduced a framework intended to improve the tracking and investigation of such incidents.

The developments underline another important part of the AI debate: as AI systems become more capable and autonomous, companies are also under increasing pressure to understand and control their behaviour.

What Should We Watch Next?

For the remainder of 2026 and into 2027, several areas will be worth watching closely.

1. Electricity demand

How much additional electricity will AI data centres require?

2. Data-centre construction

Which Canadian provinces and American states will attract the largest projects?

3. Nuclear and renewable energy

Will new nuclear, hydroelectric, wind and solar projects become increasingly connected to AI development?

4. AI chips

The competition between chip manufacturers remains central to the AI industry.

5. Canadian AI infrastructure

Canada’s efforts to build domestic computing capacity could become increasingly important.

6. Local community reaction

Residents and municipalities will continue debating how much infrastructure a community should accept and who should pay for it.

7. AI safety

As AI agents become increasingly capable of performing tasks independently, safety and oversight will remain major issues.

The Bottom Line

The AI revolution is changing.

It is no longer simply a competition to build the smartest chatbot or the most advanced AI model.

It is becoming a competition involving chips, electricity, data centres, fibre networks, cooling systems, land, investment and energy generation.

For Canada, that creates both opportunities and challenges.

The country has significant energy resources, a highly developed telecommunications sector, major technology companies and an increasingly ambitious AI strategy.

But building the infrastructure required for AI will require careful decisions about electricity, communities, environmental impacts and investment.

The next phase of the AI revolution may therefore be happening somewhere most people never see:

inside the enormous data centres powering the machines behind artificial intelligence.

BevNice.ca — keeping an eye on the technology shaping tomorrow.

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Could Saint John Become a Data Centre Hub?

Could Saint John Become a Data Centre Hub? The Pros and Cons for New Brunswick

As Canada’s demand for artificial intelligence, cloud computing, and digital services continues to grow, communities across the country are competing to attract data centres. With its deep-water port, strong telecommunications connections, industrial land, and access to reliable electricity, Saint John is often mentioned as a city with potential for future digital infrastructure investments.

But would a data centre be a good fit for Saint John?

The Potential Benefits

Major private investment

A large data centre can represent hundreds of millions—or even billions—of dollars in private investment. That spending benefits local contractors, electricians, engineers, suppliers, and construction workers.

Jobs and economic growth

Construction could employ hundreds of workers over several years. Once operational, data centres provide high-paying careers in information technology, electrical systems, security, maintenance, and facility management. While permanent staffing levels are relatively small, these facilities can also attract related technology businesses.

New tax revenue

A major development could increase Saint John’s commercial tax base, providing additional revenue for municipal services, infrastructure, and future economic development.

Building a digital economy

Saint John has been working to diversify its economy beyond traditional industries. Data centres could complement the city’s growing technology sector and help position southern New Brunswick as part of Canada’s expanding digital economy.

Canadian data sovereignty

Keeping more digital infrastructure within Canada helps support Canadian businesses and governments by storing and processing data domestically.

The Challenges

Electricity demand

Modern data centres operate 24 hours a day and consume enormous amounts of electricity. Residents may ask whether New Brunswick’s electrical system can support new facilities without affecting reliability or increasing power rates.

Water and cooling

Some data centres require significant amounts of water for cooling, although newer designs increasingly use more efficient cooling technologies. Water use would need careful review before any project proceeds.

Limited permanent employment

Despite large construction projects, most modern data centres operate with relatively few full-time employees because many systems are automated.

Public incentives

If governments provide tax incentives or infrastructure funding to attract a data centre, taxpayers will want assurance that the long-term economic benefits outweigh the public investment.

Environmental and community impacts

Large industrial buildings, additional power infrastructure, and construction activity can affect nearby neighbourhoods. Careful planning and public consultation are essential.

What It Could Mean for Saint John

Saint John has long been known as an energy, transportation, and industrial centre. A data centre could represent the next chapter in the city’s economic evolution, helping attract new technology investment while complementing existing industries.

However, any proposal should be evaluated carefully. Residents deserve clear answers about electricity demand, environmental impacts, public incentives, long-term employment, and the overall economic return for the community.

The Bottom Line

Data centres are becoming as important to the modern economy as railways, ports, and highways were in previous generations. They can bring investment and help build Canada’s digital future—but only if projects are planned responsibly and deliver real benefits to local communities.

For Saint John, the question isn’t simply whether to welcome a data centre. It’s whether any proposed project provides lasting value for residents, businesses, and taxpayers.