Podcast Summary: Front Burner

Episode: "The True Cost of AI Data Centres"

Host: Jayme Poisson (CBC)
Guest: Ellen Thomas (Business Insider investigative reporter)
Date: March 24, 2026

Overview

This episode of Front Burner explores the rapidly expanding footprint and complex impacts of AI data centres in Canada and the US, with a particular focus on a massive new development outside Regina, Saskatchewan. Host Jayme Poisson interviews Ellen Thomas, who has extensively reported on the AI data centre boom, to examine the promises, environmental and economic costs, and growing community pushback associated with these facilities. The discussion broadly questions what is gained and lost in the race to power the world’s artificial intelligence—and at what environmental and social cost.

Key Discussion Points & Insights

1. The Scale of AI Data Centres ([02:37]–[03:30])

• The upcoming Saskatchewan facility:
  • Set on 150–160 acres (roughly 120 football fields)
  • 300 MW capacity—enough to power 200,000–300,000 homes, or all of Detroit.
• US data centres can be three or four times larger, but 300 MW is still “very big.”

"300 megawatts is a very big data center. Roughly speaking, 300 megawatts is enough electricity to power 2 to 300,000 homes." — Ellen Thomas [03:02]

2. Economic Benefits & Job Creation ([03:30]–[05:01])

• Initial jobs boom during construction (approx. 800 temporary jobs).
• Only about 80 long-term, higher-paid positions post-construction—mostly technicians and security.
• US experience: job growth is transient as workers move from project to project.

3. Environmental Costs: Water and Power ([05:01]–[08:59])

• Data centres require enormous amounts of electricity (running 24/7) and water for cooling.
• In the US, 40% of data centres operate in water-stressed regions, consuming “millions of gallons” per day.
• Community resources are stretched:
  • Who pays for electricity and grid improvements?
  • Water supply concerns, especially critical in already-stressed regions.

"Data centers are guzzling millions of gallons of fresh water a day. 40% of US data centers are in water-stressed areas of the country." — Ellen Thomas [05:56]

4. Community Pushback and Organizing ([08:59]–[12:12])

• Widespread grassroots opposition:
  • Citing water, air, and noise pollution; land use; and impact on quality of life.
• Notable Canadian disputes: Alberta (water scarcity concerns), Lorneville, New Brunswick (drinking water and forests).
• US examples:
  • Memphis, Tennessee organized against Elon Musk’s “super cluster” as a health hazard.
  • Local opposition has delayed or cancelled $98 billion worth of data centre projects in just three months (March–June 2025).

"Local communities delayed or canceled $98 billion worth of projects between March to June 2025 alone." — Jayme Poisson [11:47]

5. Electricity Prices & Infrastructure ([12:45]–[14:51])

• Surging electricity demand from data centres is driving up costs for everyone by basic supply & demand.
• Utilities often pass the costs of new infrastructure onto all ratepayers, not just data centres.
• Example: Dominion Energy in Virginia spreads costs across state ratepayers, even when centres are clustered in one area.

"Just the fact that data centers are driving so much demand is making the cost of electricity go up for everyone." — Ellen Thomas [13:02]

6. Policy Responses: Ratepayer Protection & Power Plants ([15:55]–[17:25])

• US political response: Mandating tech companies to build their own power plants, aiming to relieve public grids.
• Companies are already building “behind the meter” natural gas plants and experimenting with alternative power sources (e.g., jet engine turbines).
• Nuclear (modular reactors) is being researched but is years from scaled deployment; most centres still run on natural gas.

"We're seeing jet engine turbines being installed to power data centers." — Ellen Thomas [17:11]

7. Environmental Impacts Beyond Water and Power ([18:42]–[20:48])

• Data centres affect wetlands (example: 6 acres impacted by Amazon campus in Virginia).
• Potential increase in “forever chemicals” (PFOAs) in water due to runoff.
• Rising air pollution from increased reliance on diesel backup generators, which some operators want to use more often as grid reliability declines.

8. Big Tech’s Response ([20:48]–[21:41])

• Companies like Microsoft are pledging to be “better neighbours”:
  • Promising transparency, ending use of NDAs, and covering their own infrastructure costs.
• Competing firms (Anthropic, OpenAI) issue similar promises to address negative perceptions and community concerns.

9. The Debate Over Data Sovereignty ([21:41]–[24:07])

• In Canada, advocacy for data sovereignty is framed as a patriotic issue: Canadians should control their own infrastructure/data, not rely on US companies.
• Some argue sovereignty is a legal/compliance matter, solvable by regulation, not location.
• Economic trade-off: building “walled-off” systems may undermine competitiveness because US-based global cloud platforms dominate the industry.

"The more separated you are from the global cloud computing system, the more resources you have to pour into it and ultimately it will make your business model much less competitive." — Jayme Poisson paraphrasing IBM Canada CTO [24:43]

10. Long-Term Necessity and Uncertainty ([24:07]–[26:43])

• Uncertainty over longevity/necessity:
  • Data centres may only be useful “for the next 25 years,” according to Amazon’s CEO.
  • Once AI systems are trained, some experts say the current scale of infrastructure may become obsolete.

"The useful life of a Data center is 25 years. There are experts out there who say that...once the AI is trained, we won’t need these big data centers anymore." — Ellen Thomas quoting Andy Jassy [25:53]

Notable Quotes & Memorable Moments

• On scale:
  "300 megawatts is a very big data center. Roughly speaking, 300 megawatts is enough electricity to power 2 to 300,000 homes." — Ellen Thomas [03:02]
• On public pushback:
  "Local communities delayed or cancelled $98 billion worth of projects between March to June 2025 alone." — Jayme Poisson [11:47]
• On tech company response:
  "Microsoft...promises to be a better neighbor. It's going to ensure that it pays its own way for its electricity. It's going to...stop using NDAs when they first come to town." — Ellen Thomas [21:00]
• On environmental uncertainty:
  "There was a higher than normal concentration of forever chemicals or PFOAs in the water...that to me was one thing that I think we should continue to watch." — Ellen Thomas [19:18]
• On long-term need:
  "The useful life of a Data center is 25 years...once the AI is trained, we won’t need these big data centers anymore." — Ellen Thomas referencing Andy Jassy [25:53]

Timestamps for Key Segments

| Time | Segment | |----------|--------------------------------------------------------| | 02:37 | Scope of the Saskatchewan data centre | | 03:30 | Breakdown of job numbers and types | | 05:01 | Environmental costs: water and electricity | | 08:59 | Community pushback in US, Canada, grassroots organizing | | 11:47 | Data Center Watch stats: $98B of projects delayed/cancelled| | 12:45 | Electricity pricing and infrastructure costs | | 15:55 | US policy—requirement for power self-sufficiency | | 17:47 | Exploring nuclear and alternative power sources | | 18:42 | Other environmental impacts (forever chemicals, diesel) | | 20:48 | Tech companies’ new PR and transparency strategies | | 21:41 | The argument for/against data sovereignty in Canada | | 25:44 | Long-term uncertainty about data centre necessity |

Conclusion

This episode delivers a comprehensive look at the “true cost” of AI data centres—far beyond economic headlines or promises of tech-driven prosperity. The conversation, rich with reporting and community voices, exposes the deep trade-offs between economic development, environmental stewardship, and national sovereignty. Listeners are left with a clearer sense of both the scale of this new infrastructure cycle and the public debate only now beginning to unfold in Canada as it has in the US.