Federal Government's Ambitious Proposal

Canada's federal government is reportedly considering a $15 billion incentive to encourage major domestic pension funds to invest in AI data centers powered by green energy, according to the Globe and Mail.

The proposal was part of private consultations with pension funds and is reportedly under consideration for inclusion in the fall economic statement. This move aims to address the growing demand for energy-efficient AI infrastructure.

AI's Energy Demands and Global Constraints

The rapid development of AI tools like OpenAI's ChatGPT necessitates significant energy and chip resources. However, the global push to build data centers faces challenges in planning and power supply.

Recent reports indicate that utilities, power regulators, and researchers in several countries are turning to fossil fuels like natural gas and coal to meet the near-term energy demands driven by AI and cloud computing, as clean energy deployments are progressing too slowly.