Grand Falls Shares Lessons as New Brunswick’s First Data-Centre Town Seeks Provincial Guidelines

Grand Falls Takes Lead in the Data Centre Debate

Grand Falls has become a focal point in New Brunswick’s debate over data centres. With two operational data centres, the town now finds itself navigating concerns over noise, resource consumption, and regulation, prompting a call for provincial guidelines before any further expansion.

Residents Voice Noise Concerns

Gus Rioux, a Grand Falls resident, was one of the first to sound the alarm about the impacts of data centres. Living near an industrial park housing the town’s data centres, Rioux described the persistent noise as “like a lawn mower, constantly.” The issue became pronounced after the once-rural community of Saint-André was amalgamated into Grand Falls in 2023, placing both data centres under the town’s jurisdiction.

Municipal Council Urges Provincial Moratorium

Last month, the Grand Falls municipal council requested the province impose a moratorium on new data centres and expansions until adequate regulations are introduced. Mayor Bertrand Beaulieu explained, “We’re not against the presence, or the expansion, of new data centres, but we want the province to set up guidelines before we go any further, because right now there are no guidelines.”

The initiative comes as New Brunswick’s government considers a data centre policy framework, acknowledging both economic opportunities and the concerns raised by municipalities and residents.

Operators, Ownership, and Expansions

The data centres in Grand Falls have seen changes in ownership and purpose. The first two centres, constructed by GPU One in 2019 and 2020 for cryptocurrency mining, were purchased by Vancouver-based Hive Digital in 2021, which added two more buildings. Meanwhile, Chief Fuels, acquired by Taal Distributed Information Technologies Inc., operates another centre in the same industrial park.

Hive Digital expanded its holdings in 2022, acquiring 13 more hectares for potential expansion. Its artificial intelligence subsidiary, Buzz HPC, announced plans to convert a crypto mining centre to an AI data centre. According to Buzz president Craig Tavares, Canadian data centres are important for national data sovereignty.

Community Impacts: Noise, Water, and Jobs

The key issue for Grand Falls residents has been noise. “It’s 24 hours a day, 365 days a year and it gets on people’s nerves,” said Mayor Beaulieu. In response, meetings were held with data centre owners, resulting in weekly noise monitoring and reporting. Residents like Rioux noticed some improvement over the summer, although the concern persists.

Water consumption, often cited as a concern with data centres, has not been problematic for Grand Falls, with Buzz HPC using a closed-loop water system. However, the larger question remains about the economic benefit: data centres increase the tax base but may make communities reliant on a single industry. Construction jobs exist, but few permanent positions are created, and workers often come from outside the area.

Energy Use and Renewable Claims

Data centre operators Hive and Buzz claim on their website to run on “entirely” renewable energy, specifically N.B. Power’s hydroelectric dam in Grand Falls. In reality, electricity is drawn from the provincial grid, which includes a mix of hydroelectric, wind, solar, nuclear, and some gas power. Critics warn that growing electricity demand could prompt utilities to turn to more carbon-intensive sources. In 2022, the combined electricity use of Grand Falls’ centres (96 megawatts) led the previous provincial government to exempt N.B. Power from servicing future crypto mines, with the utility warning of potential supply shortfalls by 2028.

Calls for Provincial Oversight and Next Steps

The Grand Falls council’s submission to the province recommended using independent experts, establishing detailed economic agreements, and ongoing monitoring. It also urged prioritizing sites already zoned for industry and assessing local power and water capacity before approving new centres.

Mayor Beaulieu addressed residents at an October council meeting by confirming their concerns had been heard. A provincial spokesperson says a new policy is expected in the coming weeks. Rioux emphasized the importance of meaningful public engagement, stating, “The people should have a voice…Supposedly, we're in a democracy, so let's use that.”

Source: cbc.ca.