Plans for Gas-Driven AI Data Centre Near Winnipeg

Two artificial intelligence firms have announced preliminary plans for a large-scale data centre in the vicinity of Winnipeg, featuring natural gas turbines as part of its energy strategy, which is generating both interest and concerns across Manitoba.

The companies involved, Las Vegas-based Jet.AI and Vancouver's Consensus Core, have revealed to potential investors their intentions to establish an AI-focused data centre on approximately 141 hectares of land located north of Île-des-Chênes, within the Rural Municipality of Ritchot. In conjunction with the data facility, they are proposing an on-site natural gas power plant, which could incorporate up to six turbines to meet the centre's significant energy needs.

While there is currently no official cost associated with the project, company representatives describe the investment as considerable. Consensus Core's CEO, Wayne Lloyd, mentioned that the initiative has the potential to position Manitoba as a key player in advanced data infrastructure while offering local economic benefits.

According to Lloyd, the plan seeks to create a “made-in-Manitoba” data centre that would generate high-paying tech jobs and contribute additional electricity to the provincial grid, thereby lessening the reliance on imported power. He emphasized the company's intention to collaborate closely with provincial authorities and nearby communities as the plans progress.

Consensus Core specializes in providing performance-heavy graphics processing unit (GPU) infrastructure tailored for AI applications, enabling clients to access powerful computing resources remotely. Jet.AI, which initially focused on aviation software, has recently ventured into the AI domain.

Jet.AI confirmed it has secured an agreement for the Ritchot land, which was previously designated for a cryptocurrency mining venture that did not come to fruition. The company cites the site’s strategic advantages, particularly its closeness to hydroelectric resources and natural gas lines.

Nonetheless, local and provincial governing bodies have indicated that the project remains at an informal stage. Ritchot Mayor Chris Ewen noted that the municipality has only received preliminary inquiries and has yet to see a formal development proposal. Furthermore, Manitoba Hydro stated it has not been contacted regarding grid connections associated with the initiative.

The timing of this proposal is significant, as Manitoba is enhancing its oversight over energy-intensive sectors. In 2022, the province implemented a moratorium on new cryptocurrency-related grid connections and has recently enacted laws to scrutinize large power users, including data centres, more rigorously.

Simultaneously, Manitoba is striving to gradually decrease its reliance on natural gas energy generation; however, new gas turbines have been sanctioned in Brandon to enhance capacity. Provincial leaders have conveyed their intention to analyze future data centre proposals on an individual basis, prioritizing initiatives that promise substantial job creation while ensuring Canadian control over data management.

Environmental activists express skepticism regarding the project. Climate organizations caution that extensive data centres utilize enormous quantities of electricity and water, resulting in relatively few long-term employment opportunities. Critics advocate that public resources should be directed toward industries yielding clearer advantages for Manitobans.

At present, the envisioned Ritchot AI campus remains conceptual. Its advancement hinges on regulatory green lights, energy assessments, and the province's overall strategy to achieve a balance between economic growth and its environmental and energy objectives.