{"id":843605,"date":"2026-08-03T03:15:09","date_gmt":"2026-08-03T03:15:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/843605\/"},"modified":"2026-08-03T03:15:09","modified_gmt":"2026-08-03T03:15:09","slug":"nanaimo-councillor-raises-concerns-about-data-centres","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/843605\/","title":{"rendered":"Nanaimo councillor raises concerns about data centres"},"content":{"rendered":"<p>Three years ago, council approved a rezoning for a data storage centre, but Coun. Hilary Eastmure says there was inadequate information at the time about water use.<\/p>\n<p>Detailed information on water and power usage should be provided before any future data centre rezonings are approved in the city, says a Nanaimo councillor.<\/p>\n<p>In 2022 and 2023, council approved the rezoning of two lots on East Wellington Road for a data storage centre.<\/p>\n<p>But Coun. Hilary Eastmure said she felt \u201ccompletely in the dark\u201d at the time about what the project actually entailed.<\/p>\n<p>Eastmure was elected to council in 2022, when the project was between third and fourth readings. She said none of her questions at the time \u2014 particularly about the data centre\u2019s water use \u2014 could be answered because council was no longer allowed to receive new information. Instead, councillors had to rely on material provided to the previous council.<\/p>\n<p>She made the comments in an interview this past week, after council approved her motion calling for more information to be provided for future data centre rezoning applications.<\/p>\n<p>\u201cI felt like I was being asked to have blind trust in a development that I had no real understanding around,\u201d she said of the 2022-2023 rezonings.<\/p>\n<p>\u201cGiven the degree of concern around the preservation of our water resources in general, let alone the amount of water used by the data centre industry more broadly, I think it\u2019s a really central question.\u201d<\/p>\n<p>A data storage centre would use less water and power than an AI data centre, which has been subject to calls for stricter regulations across Canada.<\/p>\n<p>IBM\u2019s website defines a data centre as a facility that houses IT infrastructure for building, running and delivering applications and services, and that stores and manages the data associated with those applications and services.<\/p>\n<p>The motion passed at the July 20 meeting directs city staff to amend the city\u2019s Official Community Plan to require that future rezoning applications for data centres include detailed information on daily and yearly water use, energy consumption and energy- and water-conservation plans.<\/p>\n<p>Coun. Ben Geselbracht said at the meeting that he was concerned at the time of the 2022-2023 rezonings about the lack of clear information on the data centre\u2019s water usage, prompting him to vote against it three times.<\/p>\n<p>The city released a <a data-mce-href=\"www.nanaimo.ca\/NewsReleases\/NR251106CityStatementOnTheProposedDataCentreAndWaterUsage.html\" href=\"https:\/\/gvic.newsengin.com\/gps2\/www.nanaimo.ca\/NewsReleases\/NR251106CityStatementOnTheProposedDataCentreAndWaterUsage.html\" target=\"_blank\" rel=\"nofollow noopener\">statement<\/a> last November that estimated the data centre\u2019s water usage to be between 55,000 and 69,000 litres per day. That\u2019s roughly equivalent to what is used by a car wash, or a bit more than half of what a shopping mall uses in a day, according to the city.<\/p>\n<p>That information was provided by the numbered company behind the project and came out of water modelling that occurred during the development permit stage, according to Jeremy Holm, the city\u2019s director of planning and development. Detailed plans were prepared by the applicant and reviewed by city staff.<\/p>\n<p>A water-use <a data-mce-href=\"www.nanaimo.ca\/whatsbuilding\/Files\/DP001376\/Water%20Usage%20Covenant.pdf\" href=\"https:\/\/gvic.newsengin.com\/gps2\/www.nanaimo.ca\/whatsbuilding\/Files\/DP001376\/Water%20Usage%20Covenant.pdf\" target=\"_blank\" rel=\"nofollow noopener\">covenant<\/a> signed in February between the city and the numbered company references an annual \u201crent charge\u201d of $60,000, payable to the city.<\/p>\n<p>Holm said via email that that rent charge is effectively a penalty, payable if consumption exceeds the maximum permitted water usage. Under the covenant, that maximum is 6.5 litres per second over any one-minute period. Holm said the owner is exempt from paying the rent charge if the maximum water usage is not exceeded.<\/p>\n<p>The charge, which would be imposed once annually for exceeding the limit, is just one lever the city has to enforce water-use restrictions, Holm said.<\/p>\n<p>The covenant also allows the city to withhold building permits and occupancy permits to ensure compliance, he wrote, adding the city can also get an injunction through the courts for breach of the covenant.<\/p>\n<p>But Eastmure said it\u2019s still not clear how much the company could exceed its maximum.<\/p>\n<p>\u201cI think $60,000, to a large corporation, is perhaps just the cost of doing business,\u201d she said. \u201cAnd it\u2019s not clear to me if that\u2019s a one-time fine or really, how that gets enforced if there\u2019s a consistent overuse of water.\u201d<\/p>\n<p>Asked how much the company could exceed its limit, Holm said there is no maximum amount of water consumption for any water user in the city. At least in the case of the proposed data centre, the city has the rent-charge option, which it doesn\u2019t have for other water users, he said.<\/p>\n<p>Water use is billed by the city at a per-unit rate, which is used to pay for the cost of providing water and to encourage conservation, he said.<\/p>\n<p>B.C. Green Party leader Emily Lowan said she views the $60,000 rent charge as effectively \u201cgiving a parking ticket to a billionaire.\u201d<\/p>\n<p>Lowan visited Nanaimo in May to call for a moratorium on all AI data centre construction until their risks are better understood and regulated.<\/p>\n<p>That call for a moratorium was specifically for AI data centres, but Lowan said in an interview that she is \u201cvery concerned\u201d about the Nanaimo data centre, and others that are cropping up. \u201cThey have a lot of the same water and electricity usages, from what I know.\u201d<\/p>\n<p>Nanaimo is a \u201cguinea pig\u201d when it comes to data-centre construction, said Lowan.<\/p>\n<p>She said the centre wasn\u2019t given much scrutiny before approval, and city council seemed to be operating with limited power and resources to effectively regulate the numbered company.<\/p>\n<p>The City of Nanaimo has not yet received a building-permit application for the proposed data centre, Holm said.<\/p>\n<p>The development permit for the centre, issued in March of this year, will expire if construction does not begin within two years.<\/p>\n<p>\u201cWhether or not the data centre is built and the timing of development are at the discretion of the proponent,\u201d Holm said.<\/p>\n<p><a href=\"http:\/\/mailto: jchadwick@timescolonist.com\" rel=\"nofollow noopener\" target=\"_blank\">[email\u00a0protected]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Three years ago, council approved a rezoning for a data storage centre, but Coun. Hilary Eastmure says there&hellip;\n","protected":false},"author":2,"featured_media":843606,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48],"class_list":["post-843605","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ca","tag-canada"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/843605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=843605"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/843605\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/843606"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=843605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=843605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=843605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}