City of Kamloops to form draft legislation meant to regulate data centres

“We have more coming,” noted Councillor Katie Neustaeter. “There have been announcements that we have been identified as a unique community where there are plans to put more of these centres in place. If we sit back and wait for the powers that be to form some kind of regulation after they run 1,000 studies and it comes back to us – and it probably won’t be unique to our city, anyway – then I would say we would be doing a disservice to our residents.”

Data centre construction has attracted criticism across North America, with environmentalists saying the facilities use large quantities of electricity and water for cooling, while providing little benefit to their local communities. Beyond the construction phase, data centres provide minimal employment opportunities.

Tech companies do typically purchase large pieces of land for the facilities, meaning the municipality will receive property tax revenue.

“It’s not only regular taxation,” argued Councillor Kelly Hall. “To me, it’s also the guiding principles of community benefit. What do we benefit, as a community, that comes from data centres – and not just AI centres, but data centres – coming to the community?”

“It’s going to be a utility-based industry. Can we set a utility rate or is there an opportunity we can talk to the province and say, ‘Hey look, this is going to take a lot of our energy,’ added Councillor Bill Sarai. “Yes, the water loop they’re using is not going to draw a lot of water. That’s a win for us. But again, what is in it for us? I would gladly see amenities charged to them. They could put in a park for us or a fire hall or something like that.”

Development, Engineering and Sustainability Director Marvin Kwiatkowski noted the city already has some levers to impose restrictions on data centres through restrictive covenants.

“We do regulate data centres. We are regulating the latest data centres with a maximum volume of water per day that is going to be required in a covenant,” said Kwiatkowski. “Taxation – that would be generally based upon the classification as per BC Assessment.”

As for the future FCM motion, Bass noted the lobbying body wants to begin looking into the issue, but needs a city to formally ask it to.

“Somebody has to start the whole process and it will take a while for FCM to put this through and get it to the government,” said Bass. “By then, hopefully there will be municipalities that have at least looked at it and can say, ‘Here are our concerns. Here are our issues. Here are our problems. This is what you need to look at, federal government.'”

Bass and Bepple’s motion is set to be debated at council’s next regular meeting on June 9.

by James Peters

City of Kamloops to form draft legislation meant to regulate data centres

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