11/05/2025
Living on the doorstep of Nanaimo’s Millstone River Valley, neighbour Kathryn Barnwell is relieved to see the arrival of fall rains refilling the Millstone River that was down to a trickle during summer’s drought.
“The snowmelt is down, we’re not getting the snowpack we used to get,” said Barnwell.
But now she’s worried about a new threat facing Nanaimo’s water supply.
A new data centre warehouse that would require large amounts of water to cool the data down is proposed for the lot across from Barnwell’s East Wellington Road home.
At 200,000 square feet, it would be the largest data centre built on Vancouver Island. Its construction is part of the $400 billion that the tech industry is forecast to spend in 2025 alone on building infrastructure to support the demand of AI products.
But Barnwell is concerned the data centre’s water needs would put strain on local water supply — especially in times of drought.
“And to see that that water would just be thrown away, we’re talking here, hundreds of thousands of litres of water, per year,” said Barnwell.
“This is not a high-tech, sexy industry coming to town. This is a very scary, large development that will use tremendous amounts of water and energy,” said Meg Rintoul, who also lives on East Wellington Road.
The rural lot has been rezoned by Nanaimo council to support the project’s construction for the jobs and revenue it is projected to bring. According to Nanaimo’s mayor, data centres are a critical piece of Vancouver Island’s future economy.
“Everybody I’m aware of is using data and electronic devices constantly, and data centres are part, integral to the world we have created,” said Nanaimo Mayor Leonard Krog.
Despite Nanaimo council’s approval, power restrictions in B.C. may still put an end to the project, according to Krog.
In 2026, B.C. will begin prioritizing power use for new resource and manufacturing projects, and make AI and data centres bid for power — measures that will restrict the industry’s power use and potential growth.
“If Hydro cannot supply the power, it won’t proceed,” said Krog.
“That is our sincere hope, that this can still be turned around,” said Barnwell.
The Vancouver Island Water Watch Coalition plans to speak out against the data centre at the next Nanaimo City Council meeting on Nov. 3 as city staff decide whether to grant the data centre a building permit.
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