A metal head made of gears symbolizes artificial intelligence, or AI, at the Essen Motor Show in Essen, Germany on Nov. 29, 2019.Martin Meissner/The Associated Press
Yung Wu is a former chief executive officer of MaRS Discovery District; Prashant Pathak is the CEO of Ekagrata; and Thomas Park is an alumnus of BDC Capital.
Imagine a future where Canada lags behind every advanced economy – a stark reality we may face by 2030 if we don’t act now. The OECD predicts that within the next decade, Canada will rank last among developed countries in productivity growth. Without immediate action, our young people and future Canadians may inherit a future of dwindling prosperity and limited opportunities.
Here’s the solution: By embracing the transformative power of artificial intelligence and investing in the critical infrastructure that supports it, Canada can reverse this trajectory and secure a prosperous future.
Yes, there’s been much talk about how AI is a force capable of revolutionizing industries. In Canada, the accelerated adoption of generative AI could boost GDP by nearly 2 per cent, some estimates show. But this isn’t what we’re talking about.
Rather, to fully capitalize on this opportunity, we must address a critical bottleneck: inadequate data centre infrastructure and reliable energy capacity to support the burgeoning AI ecosystem. The energy demands of big tech companies and AI giants are skyrocketing. Data centres are projected to increase their global energy consumption by 160 per cent by 2030. The energy demand for AI infrastructure specifically is expected to soar from approximately 10 gigawatts in 2023 to more than 50 gigawatts by 2030 – the equivalent of five times the energy needed to power New York City today.
While the United States, the countries of the European Union, Japan, South Korea and Singapore grapple with space limitations and energy constraints, Canada stands uniquely advantaged. Our abundant low-emission energy sources – hydroelectric and nuclear power – can provide a sustainable foundation for AI infrastructure. Our cooler climate naturally reduces the need for energy-intensive cooling systems in data centres.
Moreover, Canada boasts world-leading AI research institutions and a robust concentration of innovative talent. Institutions such as Mila in Montreal and the Vector Institute in Toronto are at the forefront of AI advancements. Our advanced telecommunications infrastructure and strong legal protections for intellectual property create an attractive ecosystem for AI development.
By leveraging these strengths, Canada can meet its own AI infrastructure needs and offer solutions to global partners. This strategic advantage positions us as a potential leader in the global AI supply chain, capable of attracting international investments and fostering long-term economic growth.
Ontario and Quebec are particularly well-positioned to spearhead the creation of an AI digital infrastructure corridor. With the significant low-carbon energy resources of Hydro-Québec, Hydro One, Ontario Power Generation and Bruce Power, these provinces can power the next generation of AI advancements. Ottawa’s telecommunications research hubs further bolster our capabilities, creating a nexus of innovation and infrastructure.
By developing the necessary data centre infrastructure, Canada can partner with countries within the Five Eyes alliance, the EU and the Indo-Pacific region to support their data and algorithmic needs. Just as Taiwan leads in semi-conductor manufacturing, Canada can become the backbone of global digital infrastructure, offering reliability and trust through our legal system and proximity to the U.S., the world’s largest hub of AI companies.
To turn this vision into reality, we propose forming a coalition of technology businesses, sovereign investment funds, provincial power utilities and philanthropically minded individuals and institutions. This coalition would develop a comprehensive implementation plan for a portfolio of AI infrastructure projects. Policy-makers can facilitate this effort by streamlining regulatory processes for new energy sources and providing support through project financing and guaranteed loans for data centre construction.
We must also address potential concerns. While the environmental impact of increased energy consumption is significant, Canada’s commitment to net-zero energy sources ensures that our growth in AI infrastructure aligns with global sustainability goals. The financial costs of these projects are substantial, but the long-term economic benefits far outweigh the initial investments.
Canada’s productivity outlook is alarming – but does not have to define our future. By embracing AI and building enabling infrastructure, we can transform this challenge into a sustainable opportunity for growth and leadership on the world stage. The world presents an immense opportunity for Canada – a chance to lead in the AI revolution, secure our economic future and enhance our standing globally. We must seize this opportunity now to ensure that Canada not only keeps up with global advancements but sets the pace for others to follow.