Canada’s AI buildout left out the water bill

Canada wants a lot more AI compute on home soil, but it hasn’t decided how to account for the water that keeps it running.

The federal “AI for All” strategy, released June 4, projects the country will need 5.5 gigawatts of commercial compute over the next four years, and commits to 850 megawatts of domestic capacity by 2030. But there isn’t much detail on how water and land use will be measured or managed. 

On power, Canada has a real edge. According to The Conversation, more than 83% of the grid runs on low-emission sources, which can cut a data centre’s operating emissions by up to 90%. 

Water doesn’t get the same answer.

Wafr Technologies announced on July 2 that it raised $100 million toward a $300-million goal to build an AI research lab in Canada. This lab would be anchored on a proprietary cooling technology the company says cuts data centre water use by up to 95% and cooling power draw by up to 80%.

According to their press release, a typical data centre uses up to 10 million litres of water per megawatt annually, with cooling consuming 30 to 45% of total electricity load. As workloads grow, more the real cost and the compliance questions come from the data centre underneath, instead of the model itself. 

So far, Wafr’s technology has been demonstrated in India and Dubai, but not yet at Canadian scale. The lab is planned, not built, and the raise is a third of the way there. 

“Our vision is to build a globally recognized AI research lab in Canada and be a leader in how we can reduce the impact to water and energy,” says Bikram Singh, Wafr Technologies Co-founder and CEO.

When CIOs or CISOs sign a cloud or data centre contract, asking what the provider does on cooling and water is a fair question. It might even be one your board or CFO will get to before you do.

Final Shots

• Canada’s AI strategy leans on the clean grid to handle emissions but leaves water use largely unaddressed, so the resource question falls to whoever runs the compute.
• Cooling can eat 30 to 45% of a data centre’s electricity load and millions of litres of water per megawatt, which puts efficiency in the operating budget, not the sustainability report.
• Cooling and water use are now fair questions on any compute contract, and the answer is the kind of thing a board or CFO might reach before the technology leader does.