Canada Considers $15 Billion Incentive to Build Green-Powered AI Infrastructure

The Canadian federal government is weighing a $15 billion initiative to encourage pension fund investments in AI data centers powered by clean energy. The proposal, reported by the Globe and Mail, reflects Canada’s ambitions to lead in sustainable technology infrastructure amid growing global competition.

AI’s rapid expansion has led to soaring energy demands, with data centers serving as critical hubs for artificial intelligence tools like ChatGPT. However, clean energy supplies worldwide have struggled to keep up, often resulting in reliance on fossil fuels, such as natural gas and coal, to meet demand. The proposed Canadian incentive aims to address these energy challenges by aligning AI development with the country’s climate goals.

An insider familiar with the plan described the investment as a signal of Canada’s intent to lead in sustainable AI infrastructure. If enacted, the initiative could prioritize clean energy solutions to support AI growth while reducing reliance on high-emission power sources.

The proposal comes as nations across the globe compete for AI dominance. With an estimated $1 trillion surge in AI-related data center investments, Canada’s approach seeks to position itself as a leader in merging technological innovation with sustainability. “This measure could serve as a blueprint for integrating AI expansion with green energy goals,” noted a government official.

Beyond supporting AI development, the plan aligns with Canada’s broader climate commitments. By incentivizing investments in green-powered infrastructure, the initiative could bolster the country’s clean energy transition while creating a model for other nations seeking sustainable approaches to tech growth.