The Upper Nicola Band could become a leader in British Columbia’s growing artificial intelligence (AI) industry.
First Nations communities are already leading the way with major projects, such as the Haisla or Nisga’a led LNG projects along the coast. The Upper Nicola have an opportunity to become innovators in the growth of BC’s AI infrastructure.
On July 7, Upper Nicola Band members will vote on a plan to build a $500 million AI data centre on Lot 87 near Nicola Lake, just outside of Merritt. Bell Canada and Kamloops-based iTel Networks partnered on this project, one of six data centres that Bell plans to build in BC. The Upper Nicola facility will need up to 150 acres of land and about 300 megawatts (MW) of power per year.
The Upper Nicola data centre will create a host of economic benefits. Chief Daniel Manuel says the build alone could create about 200 permanent jobs and 2,000 construction jobs during the two-year construction period. The facility will be modern, quiet, and non-polluting, and will generate a windfall of local revenue, more than any other source of revenue for the band in the past.
The project will still have challenges, especially when it comes to energy.
BC Hydro is dealing with a long-term power shortage that’s getting worse due to worsening stretches of drought.
BC Hydro imported 13,600 gigawatt-hours of electricity from fossil fuel sources in Alberta and the US for the 2024 fiscal year. That was a record and cost almost $1.4 billion. Even with Site C Dam being built, BC Hydro can’t meet these vast new energy demands on its own.
The proposed Upper Nicola AI facility, along with other AI-driven economic projects, shows how important it is to upgrade BC’s capacity for domestic energy supply.
Barry Penner, chair of the Energy Futures Institute, recently pointed out that BC needs to look at all energy options, including natural gas, to keep things running and growing. Alberta’s approach, using its deregulated electricity market and abundant natural gas to power data centres, is something BC could emulate to stay ahead of the curve.
Major business and industry groups in BC support expanding the use of AI to increase productivity and improve economic growth.
The Greater Vancouver Board of Trade’s report titled, “Accelerating AI Adoption in B.C.”, reports that AI could increase productivity in the province and help ensure that the province enjoys an outsized share of Canada’s expected $180 billion productivity boost.
Likewise, the BC Chamber of Commerce has noted the importance of AI for keeping the province competitive. They say government funding and clear rules and roadmaps are needed to make it easier for businesses to make the best use of AI.
The BC provincial government has already been using AI in public services, and it’s made them more efficient and competent when analyzing data.
This upcoming vote by the Upper Nicola isn’t just about local development; it’s about putting the community at the forefront of an AI-driven economy. This project shows how First Nations can once again be at the forefront of major shifts in the economy, just like they were with LNG.
The Upper Nicola Band’s work on AI infrastructure could be a model for other communities and speed up BC’s larger plan to use new technology to make the province a more prosperous place. This is a crucial step forward, and it will require similar investments in energy infrastructure so BC can stay competitive in the rapidly changing global economy.
