Canadians Need Dependable Infrastructure to Support AI Computational Resources

In an era of geopolitical instability and shifting world orders, Canada's economy faces numerous challenges. To stay ahead, it needs dependable infrastructure to support artificial intelligence (AI) computational resources. The hardware supporting AI is becoming a general-purpose input into science, business, national defense, and healthcare.

AI productivity gains are already visible in more accurate health-risk detection, faster software development, and lower barriers to solving complex research problems. However, Canadians need reliable access to computing power, jurisdiction over data, and stronger domestic capabilities in data center development and operation.

Data centers impose real costs, including higher energy prices for local residents, noise pollution, and limited permanent job creation. Proposed projects have faced backlash across Canada due to these concerns. The Trump administration's decision to restrict access to Anthropic's frontier AI models highlights the strategic importance of computational resources.

To address this misalignment of incentives, policymakers need to ensure Canadians receive strategic and innovative benefits from data center construction. This can be achieved by implementing a more active industrial policy, favoring projects with Canadian-headquartered ownership stakes or joint ventures with Canadian firms.