German-Canadian billionaire Tobias \u201cTobi\u201d L\u00fctke is once again ruffling feathers with another hot take: Canada needs more AI data centres.<\/p>\n
The founder and CEO of e-commerce platform Shopify, one of the biggest companies in Canada<\/a>, voiced his opinion on X on Wednesday, writing, \u201cWe need a lot more data centers.\u201d<\/p>\n This was in response to a Globe and Mail op-ed describing AI data centres as \u201cthe future\u201d and arguing that \u201cCanada must overcome the backlash.\u201d<\/p>\n We need a lot more data centers, and they uniquely play to Canada\u2019s high tech, and energy strengths.<\/p>\n The backlash is nonsensical. https:\/\/t.co\/ppYEW9IOuE<\/a><\/p>\n \u2014 tobi lutke (@tobi) August 5, 2026<\/a><\/p>\n Data centres have become a national hot topic in recent years as governments and tech companies race to expand AI infrastructure.<\/p>\n There are reportedly<\/a> around 300 AI data centres across Canada, with Meta\u2019s massive $13-billion, one-gigawatt centre in Sturgeon County, about 35 kilometres north of Edmonton, Alta., slated to be the biggest in the country<\/a>. <\/p>\n But contrary to L\u00fctke\u2019s beliefs, many Canadians have been protesting these types of projects due to concerns about how much land, electricity and water these massive AI facilities consume.<\/p>\n In January, Manitoba Premier Wab Kinew rejected a proposal to turn 141-hectare farmland south of Winnipeg into a massive AI data centre, citing a \u201cbig threat to the environment and not much benefit to the economy,\u201d according to the Canadian Press<\/a>. <\/p>\n Just last week, on July 30, the city of Mississauga, Ont., approved a one-year moratorium<\/a>, meaning developments of digital infrastructure projects, such as data centres, have been put on hold for at least one year.\u00a0<\/p>\n Other Ontario cities, such as Hamilton, were not so lucky, having voted against imposing a temporary ban<\/a> on the development of AI data centres.<\/p>\n When L\u00fctke\u2019s recent X post gained traction online, some Canadians took the opportunity to voice their concerns, arguing that AI data centres come with high costs for local communities.<\/p>\n \u201cData centres drive up power bills, suck water, create noise, and leave few permanent jobs while profits flow offshore,\u201d one user wrote.<\/p>\n Data centres drive up power bills, suck water, create noise, and leave few permanent jobs while profits flow offshore. Calling the backlash \u201cnonsensical\u201d ignores the real costs dumped on Canadian communities.<\/p>\n \u2014 \u2076\ud80c\udd53Prince (@Prince_M194) August 5, 2026<\/a><\/p>\n Others who have been debating this exact topic for some time suggested that weighing the pros and cons is imperative before expanding AI infrastructure.\u00a0<\/p>\n The backlash isn\u2019t nonsensical and there is merit in opposition. Like all new technology, we have to weigh the pros and cons. Some pros being short term job creation and tax revenue. Some cons being higher water consumption, higher energy costs for locals and noise pollution. We\u2026<\/p>\n \u2014 Chris MacLean (@ChrisMacVFX) August 5, 2026<\/a><\/p>\n There are some Canadians who back up L\u00fctke\u2019s statement, suggesting certain provinces such as Newfoundland and Labrador are \u201cuniquely positioned\u201d to become the next major hub for AI.\u00a0<\/p>\n @tobi<\/a> Newfoundland and Labrador is uniquely positioned for this with cold weather and high energy potential<\/p>\n \u2014 Jeff (@jeffgouldnl) August 5, 2026<\/a><\/p>\n Currently, massive AI data centre developments are concentrated in Ontario, Quebec, and Alberta. The Government of Alberta<\/a> describes the province as a \u201cglobal leader\u201d in the sector, due to its natural resources, competitive tax rates, and business-friendly regulatory environment. Beyond water consumption, AI data centres also require enormous amounts of electricity to operate.<\/p>\n A single query run through the generative AI chatbot ChatGPT needs nearly 10 times more electricity than a standard Google search, according to a report by the International Energy Agency<\/a>. Given the nine billion searches conducted every day, fully adopting AI-powered search could add nearly 10 terawatt-hours of electricity demand each year, which is enough to power roughly 900,000 Canadian homes for an entire year.\u00a0<\/p>\n
B.C. is entering the race with plans to build a cluster of AI data centres in Vancouver. However, the proposal sparked public outcry in May, with hundreds of residents protesting<\/a> concerns over the facilities\u2019 potential water consumption.<\/p>\n