Upper Nicola Band gauging feedback on proposed $500-million AI data centre

Upper Nicola Band members will head to the polls next month to vote on a proposal to build a new $500-million AI data centre on their reserve, near the City of Merritt.

The proposed data centre is one of six that Bell Canada is working on – three of which be in Kamloops, one in Merritt, and two more at locations that have yet to be announced publicly.

A seven-megawatt (MW) facility was due to open in Kamloops this month, with the Merritt facility coming online by the end of this year. Another two 26 MW facilities at Thompson Rivers University are expected to be open by 2027.

In a video posted by the Upper Nicola Band, Chief Daniel Manuel said the proponents – which include Kamloops-based i-Tel Networks – want to use up to 150 acres of land on what’s called Lot 87 near the north end of Nicola Lake, to build this new facility, which is expected to require 300 MW of power each year.

“Really what the community members would be supporting is the advancement into the next stage of dialogue and discussions,” Manuel said. “That gives us the opportunity to assure that we are putting the designated lands to the proper use as defined by the designation document.”

The Upper Nicola Band says the AI data centre will occupy a section of land that will not be used by a 15 MW solar project that is also being developed. The band is also working on a medical cannabis production facility on its territory.

According to a disclosure statement released by the band, construction will take about two years, though its unclear when it may begin. The facility is expected to create about 200 permanent jobs, plus another estimated 2,000 construction jobs.

“There would be no unusual environmental effects from the operation of the data centre,” the disclosure statement said. “The data centre will be a highly designed and modern warehouse complex. It will be quiet and non-polluting.”

The Upper Nicola Band also said that the facility is expected to generate significant revenue, though an exact figure was not provided. The disclosure statement noted that the current tax rate for light industrial set by Chief and Council is $11.01291 per $1,000 of assessed value.

“If this project is developed, it will generate tax revenues that will rival all revenue sources to which the Band has had access to up to this time,” the disclosure statement added.

“At the present time, it is not possible to determine, exactly, what the tax base may be. Taxation is based upon assessed values. The Band contracts with BC Assessment to determine the assessed value of the project.”

The Upper Nicola Band will be hosting a pair of information sessions for its members on June 25 and June 30, with voting day scheduled for July 7.

Online voting gets underway on Monday (June 23), and it will run until July 7.

For more information on the project, including the question that Upper Nicola Band members will be voting on, go here.