B.C. cities brace for AI data centres as Terrace plots regulatory guardrails

Northern B.C. cities are moving quickly to regulate data centres before developers arrive with projects that could reshape local infrastructure.

Terrace is one of several communities targeted for large-scale data centre campuses, with a proposed facility called Skeena Data Centers potentially covering an area equivalent to nearly half of Stanley Park. The city's advantages are familiar: long cold winters, room to expand, and abundant renewable power. But the proposed campus would consume up to 10 times the electricity of all of Terrace's households—raising questions about where that power comes from and how the industry will change local life.

No firm proposals have yet been submitted, but founder Christopher Chong signed a memorandum of understanding with Hanwha Energy USA Holdings in late May to develop energy infrastructure supporting data centres. Chong told The Tyee he sees efficiency gains and higher returns on Canadian energy supply: "If we can create a direct fibre link to Japan and Korea, why don't we actually process their data? Not only will we use the same natural resources, but we'll create more jobs, we'll create more revenue, and we will be helping these trade partners."

The proposed facility would sit on 173 hectares in an industrial park near the Terrace airport and could generate hundreds of long-term jobs for building maintenance and cooling system management. Chong suggested renewable energy could power the campus, though a connection to the forthcoming Prince Rupert Gas Transmission line remains possible.

Local residents worry about noise, visual impact, strain on electricity and water, and tax implications. These concerns mirror those in Kamloops and Merritt, where data centre projects are already underway. The challenge: current zoning bylaws give local governments limited tools to regulate or scrutinize these incoming industries.