Post by : Meena Ariff

Two AI companies have revealed preliminary plans to construct a sizable data centre located south of Winnipeg, partially powered by natural gas turbines, a development that is garnering both interest and scrutiny in Manitoba.

Jet.AI, based in Las Vegas, and Vancouver’s Consensus Core have notified prospective investors of their plan to build an AI-centric data centre on approximately 141 hectares of land just north of Île-des-Chênes, within the Rural Municipality of Ritchot. The companies propose to include an on-site natural gas power facility, potentially featuring up to six turbines to meet the centre's significant energy requirements.

While the project's financial details remain unspecified, representatives emphasize a substantial investment. According to Consensus Core CEO Wayne Lloyd, this initiative could elevate Manitoba to a key player in advanced data infrastructure, yielding local economic advantages.

Lloyd highlighted the intention to create a “made-in-Manitoba” data centre that generates high-paying tech jobs and adds to the provincial grid's electricity generation, which might lessen the dependency on imported energy. He noted that the company plans to collaborate closely with provincial authorities and nearby residents as the project develops.

Consensus Core provides high-performance GPU infrastructure tailored for AI applications, enabling remote access to computing power. Jet.AI, initially focused on aviation software, has recently ventured into the AI realm.

Jet.AI has declared its agreement to secure the Ritchot property, previously designated for a cryptocurrency mining venture that did not come to fruition. The firm considers the location strategically valuable due to its closeness to both hydroelectric resources and natural gas infrastructure.

Despite these announcements, both local and provincial authorities indicate that the project is still informal. Ritchot Mayor Chris Ewen confirmed that the municipality has only received initial inquiries and lacks a formal development proposal. Manitoba Hydro has stated that it has not been formally contacted regarding grid connections for the project.

The timing is significant as Manitoba is increasing its oversight of energy-intensive sectors. The province enforced a moratorium on new cryptocurrency connections to the Hydro grid in 2022 and has recently enacted legislation mandating closer scrutiny for large power users, including data centres.

Simultaneously, Manitoba is transitioning away from natural gas generation, even though new gas turbines have been sanctioned in Brandon to enhance capacity. Provincial leaders have indicated they will evaluate future data centre proposals individually, emphasizing projects that promise substantial job creation and safeguard Canadian data control.

Environmental advocates remain cautious. Climate organizations warn that large data centres require significant electricity and water while offering relatively few permanent jobs. Critics argue that public resources should prioritize industries that deliver clearer benefits to Manitobans.

Currently, the proposed AI campus in Ritchot remains in the conceptual phase. Its progression will hinge on regulatory approvals, energy implications, and the province's overarching strategy for harmonizing economic growth with environmental and energy objectives.

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