Why does M3 matter?
To ensure our country’s relevance and security in a technologically advancing world, Canada must create capacity quickly. This requires domestic AI infrastructure. Technology is the fastest growing sector in BC and Ontario and technology hubs are the economic drivers for major Canadian cities. Data Centres are part of the infrastructure required to support this critical economic engine, similar to how we need roads and highways, electrical grids and water reservoirs. As in all our economic sectors, we need thoughtful solutions to create this infrastructure.
In 2018, the United States enacted the Clarifying Lawful Overseas Use of Data Act (CLOUD Act) which explicitly requires U.S.-based technology and cloud service companies to disclose data requested by U.S. law enforcement, regardless of whether that data belongs to non-U.S. citizens or is stored physically on servers outside the U.S. This began a global shift towards digital sovereignty — countries around the world began racing to develop the internal capacity to ensure their data remains protected and within their own jurisdictions.
Through the leadership of Prime Minister Mark Carney, Canada has determined that we must develop our own autonomous sovereign AI infrastructure. As Federal AI Minister Solomon’s office stated:
“AI compute is becoming core national infrastructure. Canadian researchers, companies and innovators need access to secure, high-performance compute to develop AI in Canada rather than relying on infrastructure outside the country.”
M3 is powered by 98% clean hydroelectricity rather than typical natural gas-fueled power source.
Preliminary engineering shows that this data centre will use approximately 90% less water than a traditional data centre.
The data centre is repurposing an existing building and upgrading to avoid demolition, reducing embodied carbon.
The project directly supports the Mount Pleasant tech hub where most of Greater Vancouver’s technology companies are converging, who will be utilizing the compute power from this strategically positioned data centre.
In terms of scale — at 26MW, this project is approximately 2% of the mega data centres in Alberta which are 1 Gigawatt (1000 MW).
This project is of vital national interest. Canada’s data — whether that be government, healthcare, academic, defense, personal or related to our intellectual capital — must have its own infrastructure to protect Canadian privacy and security. Where better to do that than one of the only net positive data centres in the world?
The Facts of M3
M3 is a low carbon 26 MW data centre and one of the first projects advancing under the federal Enabling Large-Scale Sovereign AI Data Centres initiative. It is relatively small in scale and will be powered by clean hydroelectricity from BC Hydro, via the Mount Pleasant substation. M3 is connected to the False Creek Neighbourhood Energy Utility, allowing for its waste heat to be recaptured to provide low carbon heat and hot water to as many as 26,000 homes. Located within the Main Alley Campus at 5th and Main in Mount Pleasant, it will repurpose an existing commercial structure built to post-disaster standards that has already been operating as a data centre for decades.
Canada’s AI sovereignty requires domestic infrastructure. Without it, citizens, businesses and governments must rely on foreign-controlled servers. In 2018, the United States enacted the Clarifying Lawful Overseas Use of Data Act (CLOUD Act) which explicitly requires U.S.-based technology and cloud service companies to disclose data requested by U.S. law enforcement, regardless of whether that data belongs to non-U.S. citizens or is stored physically on servers outside the U.S. This has begun a global shift towards sovereign digital infrastructure - countries are racing to develop internal capacity to ensure their data remains protected and within their own jurisdiction.AI is already embedded in daily life — through our phones, apps, social media, search engines… Governments, businesses, universities and hospitals all rely on AI computing. Yet much of that capacity resides outside our borders. To protect the privacy and security of their citizen’s data and ensure our country stays relevant in a technologically advancing world, Canada needs sovereign AI infrastructure.The question is whether we build and govern it here, on our terms.As Federal AI Minister Solomon’s office stated:“Data sovereignty is about control — Canadians should have meaningful control over where sensitive data is stored, who can access it, and what laws apply.”
Contrary to conventional data centres, the M3 data centre is designed to be highly sustainable, with zero operational carbon emissions. Traditional data centres are known for consuming massive amounts of power, water and emitting significant carbon emissions. M3 will draw on BC Hydro’s 98% clean hydroelectricity for power and recycle its waste heat by connecting to Vancouver’s False Creek Neighbourhood Energy Utility to provide heating and hot water for thousands of homes. As the district energy system expands, M3 will be able to serve upwards of 26,000 homes with low carbon heat.
Previous generations of data centres cool their servers through evaporation, consuming large volumes of water. The proposed M3 facility uses a closed-loop system that circulates coolant directly around chips and processors — absorbing heat without evaporation — dramatically reducing water use. Vancouver’s mild climate also provides free ambient cooling for most of the year, eliminating evaporative cooling on all but the hottest days, resulting in a 90% reduction in water use versus a conventional data centre. The captured heat will feed into a district energy system, which act as a natural ‘heat sink’, further reducing water needs and improving overall energy efficiency. M3’s design will allow it to use approximately the same amount of water as a typical commercial building.
As BC Hydro spokesperson Susie Rieder stated on record: "The short answer is no." BC has the second-lowest electricity costs in North America, with a regulated structure that keeps industrial and residential pricing separate. Power for these projects was allocated through a formal BC Hydro application and approval process.
No. Legislated limits on high-demand users mean this is not open-ended grid access. BC Hydro further plans to grow its power supply by nearly 30% through Site C, new procurement, and Power Smart 2.0 — with safeguards to keep electricity reliable and affordable for all ratepayers. Waste heat will further displace natural gas in Creative Energy’s system, reducing heating costs across 45M+ sq. ft. of downtown real estate.
District energy systems generate thermal energy at a central plant and distribute it through a network of underground pipes to heat and cool multiple buildings. This removes the need for individual boilers or air conditioners in every building and allows for efficiencies that reduce overall energy consumption. By connecting to the False Creek Neighbourhood Energy Utility, a City-owned system heating 47 buildings and 10,000+ residents, M3’s waste heat will help the city reduce its reliance on natural gas, helping meet its decarbonization goals and providing low carbon heat for thousands of homes.There are precedents for data centre integration to District Energy in Germany, Sweden and Finland - in fact, Germany’s recently passed legislation that new data centres must connect to district energy systems.As part of the rezoning for 111 E 5th Av, the proposal has been required by the City of Vancouver to connect to the False Creek Neighbourhood Energy Utility, this plan will be tested and verified as part of rezoning conditions for approval by the City.
The downtown location is the entire reason this facility can achieve its low carbon outcome. Recycling waste heat requires physical connection to Creative Energy’s and the City’s district energy piping network. A remote data centre would typically rely on fossil-fuel energy sources and vent that heat into the atmosphere — making it a conventional, high-emission facility. M3 (111 E 5th Ave) is an existing office building that has been operating with data centre uses for decades. It is now being repurposed — no change in use, no new footprint, no demolition. It is already connected to the Mount Pleasant district energy network, enabling the waste heat to be funneled directly into the district energy system to heat thousands of homes. There is no displacement of housing or community services.Urban locations also increase connectivity critical for advanced computing. Real-time AI inference requires facilities to be physically close to users. Remote locations introduce latency that makes AI services less practical for a broad population and many applications. Locations in or close to downtown Vancouver provides the lowest-latency point for a broad population, with direct fibre to the Vancouver Internet Exchange and 70+ carriers and networks.In the future, most if not all major cities will require downtown data centres for the ability to integrate with district energy as well as for the connectivity advantages.
You might be surprised to learn that the M3 data centre is being located in an existing concrete structure designed to post-disaster standards that has operated as a data centre already for decades without any noise complaints. The building on site has operated with data centre uses since 1977. In terms of exterior mechanical noise, it will operate much like a modern office building - near silent. All mechanical systems will be acoustically treated to comply with municipal noise bylaws and industry standards, with detailed mitigation measures incorporated into the design and compliance verified before operations begin. Downtown data centres are also not unusual — there are several facilities operating in Downtown Vancouver, at 1050 W Pender, 555 W Hastings and 175 W Cordova St, none of which generate noise of any significance. Nearly every major North American city has a large data centre in its downtown core, whether it’s 1 Wilshire in LA, 350 E Cermak in Chicago, the Westin Exchange in Seattle, or 151 Front in Toronto, they are unobtrusive and have remained largely in the background. At 26 MW, this data centre is a fraction of the size of a typical suburban hyperscale data centre.