I have wanted to write a post about the proposed data centre for the Spruce Lake Industrial Park for a few weeks now, since the EIA approval was confirmed.
Perhaps now is a good time to get us off the topic of amalgamation.
Overview
As part of a presentation in favour of the Spruce Lake Industrial Park rezoning, the CEO of Saint John Industrial Parks presented two proposed projects for the industrial park, one of which was a data centre.
This was backed up by a Letter of Intent from
somebody, so it wasn't entirely speculative. Since then, the data centre project has been mentioned again in several other council meetings or committees, specifically highlighting that Saint John is a very competitive location.
What makes Saint John, or specifically the Spruce Lake Industrial Park, a good location for a data centre?
Power Availability & Cost -
While prices have gone up in recent years, New Brunswick still has some of the lowest electricity costs in North America. In Canada, it appears that only Quebec and Manitoba are significantly cheaper.
The industrial park is close to major power generation and transmission infrastructure (Coleson Cove, Point Leapreau, etc.), which is highly advantageous.
Cooling & Climate -
Thanks to the Bay of Fundy, Saint John has a naturally cool climate, especially in the summer when compared to other locations in Canada. We do not get temperatures in the 30s like many inland cities do.
Spruce Lake itself can also offer an abundance of fresh industrial water for cooling when and if required, as it already does for other industrial users.
Connectivity & Latency -
While transatlantic cables to Europe do not pass through Saint John directly, they do so close by in Halifax, which is only a stone's throw away by network standards.
Saint John also has existing high-bandwidth fibre connectivity with the United States, which should minimize latency to high population regions on the East Coast.
Natural Hazard Risk -
Saint John is relatively sheltered from natural disasters such as earthquakes or tsunamis. It also has a relatively low risk of forest fires (at least compared to western Canada and Quebec), and the industrial park's location should shelter it from the worst of any flooding or storm surge.
Severe storms, especially ice storms, could still pose a risk, but some mitigations could be taken to minimize this.
Land & Construction -
Data centres typically require large plots (50-200 acres), which is precisely what the industrial park aims to provide.
Land costs in Saint John are also competitive, especially when compared to other provinces such as Ontario or BC.
Thanks to the city and the province, the industrial park is now zoned correctly, allowing a project to proceed to more advanced planning and applications.
Workforce & Ecosystem -
While I wouldn't say this is Saint John's strength, the city has a large enough industrial and IT workforce to mitigate any concern.
One workforce benefit is that wages for these positions may be lower than elsewhere in Canada, due to the local cost of living, although some may debate this.
Comparable data centre projects
The most comparable example in Canada I could find to the investment described in the presentation is in Calgary, called CAL-3 from eStruxture Data Centers.
This will be the largest data centre in Alberta; however, it is smaller in investment dollars and size. The project is ongoing and set to be completed next year.
https://www.estruxture.com/insights/in-t...t-in-calgary-area-the-largest-in-alberta
I can't find the site plan for this project or more detailed images, but the below render gives you an idea of the size and scale.
Looking to the United States, Meta has a data centre project in Kansas City, Missouri, of roughly $1 billion.
Here are some images/renders of that project.
Another example could be a Google data centre in The Dalles, Oregon, also of a similar size investment.
I believe this image is from when the site was under construction.
Employment & other benefits
The PowerPoint presentation mentioned 750 jobs during construction, which is fairly self-explanatory. However, once operational, it mentions 150 ongoing jobs. What would these jobs be?
Facilities Technicians, Power Engineers, HVAC, Electrical Technicians, NOC operators, Network Engineers, Systems Engineers, Site Security, Health & Safety, Admin, etc.
While the compensation will vary between these roles, these are good-paying jobs, and I would guess many would pay between $70-100K , with senior roles even higher. There would likely also be some spin-off jobs in the local area from business services and other niche services.
As the presentation mentioned, a data centre could add $120-135M to the tax base and generate $3-3.5M annually in property taxes. This would be roughly a 2% increase in overall property tax revenue.
What makes this even more appealing is that the data centre requires few municipal services compared to other properties, such as residential or commercial. While there would likely be some upfront requirements to transport and water infrastructure, once the data centre is operational, it should be a net positive.
NB Power & Saint John Water
One of my biggest concerns with this project is NB Power's ability to service it, at least reliably. However, having another large industrial customer, such as a data centre, would be advantageous for them.
The power requirements are consistent, which allows the utility to justify transmission and generation upgrades. For example, it may aid them in committing to a new generation like a wind farm, as they can guarantee that the wind farm will be profitable at a given price, knowing that the data centre will consume that power.
I tried to estimate the power requirements of a data centre like this, but it's a little challenging without more information. A rough guess could be approximately 100MW.
For reference, NB's peak power requirements in the wintertime are about 3000MW, so this would be about 3%. The Burchill Wind Farm can produce about 42MW, and Coleson Cove about 1000MW.
I am less concerned by Saint John Water, but this could be beneficial to them, too. The water consumption of a data centre depends on its cooling method, but even if it's a highly efficient system, it could use 1000-2000 m³/day.
Currently, Saint John Water distributes about 23,000 m³/day so this would be a 5%+ increase in output. While much of the revenue generated by this consumption would be required to maintain the infrastructure, there could still be a significant margin for profit, which Saint John Water could reinvest into upgrading or maintaining other infrastructure in the city or limit rate rises.