A majority of Canadians are opposed to government incentives for AI data centre construction, according to a new poll.

A Nanos Research survey conducted for The Globe and Mail found that 38 per cent of respondents said they are against financial incentives for data centre development, while another 26 per cent said they somewhat oppose such measures.

Six per cent were in favour of incentives, while another 22 per cent somewhat supported the idea.

Some regions in Canada have seen an influx of data centre proposals to meet the intense demand for training and running artificial intelligence models. Opposition is growing, too. Projects from British Columbia to Alberta to Ontario have been the subject of protests, with locals concerned about the energy consumption and environmental impacts associated with data centres. Some also have questions about the economic benefits.

The federal government is encouraging AI data centre development. In 2024, the Liberals announced a spending package that allotted $700-million to build and expand AI data centres and up to $1-billion for new public sector computing infrastructure. Ottawa has a separate program to help build large-scale data centres, defined as those requiring at least 100 megawatts of electricity, though the form and level of support will vary by project. The government could provide financing, for example, or sign agreements to purchase compute capacity.

“Our approach is not to subsidize data centre development indiscriminately. Any federal participation must deliver a clear public benefit that the market would not necessarily provide on its own,” said Leela Polushin, press secretary for federal AI Minister Evan Solomon. “Canada needs strategic AI infrastructure, but projects seeking federal participation must meet a much higher standard of public benefit and responsible development.”

Nanos, which polled 1,104 Canadians in late July, found that opposition to incentivizing data centre construction was strongest among people aged 18 to 34, with 43.1 per cent against it. Another 24 per cent somewhat opposed the idea.

“If you’re a 20-something Canadian, and you’re hearing that the government wants to promote AI data centres, you might be wondering whether the government is investing in something that will put you out of a job,” said Nanos founder Nik Nanos.

Survey respondents cited high electricity demand, environmental harm and heavy water use as their top concerns. (Some data centre designs can use large amounts of water for cooling, while other methods consume considerably less. New energy infrastructure to power data centres, such as natural gas plants, will also consume water.)

Despite these concerns, 15 per cent of respondents said AI data centres would have a positive impact on the economy, while another 29 per cent said the effects would be somewhat positive. Another 32 per cent said the impact would be fully or somewhat negative.

Asked about the potential benefits, 22 per cent of respondents cited job creation and 8 per cent referenced economic growth. About 13 per cent of respondents said there are no benefits.

One of the federal government’s reasons for supporting a data centre build-out is to boost digital sovereignty and ensure that Canada has more control over the crucial infrastructure that powers cloud computing and AI, along with the data that is housed and processed at these facilities.

The Nanos survey shows respondents are not sold on the concept. Only 8.2 per cent of respondents listed data sovereignty as a top benefit, while 6.5 per cent cited national control over infrastructure.

Slightly under half of the respondents believe that Canada should equally prioritize investing in AI data centres and protecting energy, water and land resources from industrial developments. “For anyone who wants to advance government support of AI data centres, they need to add some messaging about the environment,” Mr. Nanos said.

So far, the federal government has allotted up to $240-million to Toronto-based AI company Cohere Inc., funding that is tied to an expanded data centre in Cambridge, Ont. It has also distributed money to the Digital Research Alliance of Canada (DRAC), a non-profit that oversees public sector computing infrastructure and whose members include universities and colleges. A DRAC proposal for a data centre in Hamilton, Ont. has drawn considerable opposition from some residents.

In May, Ottawa signed a memorandum of understanding with Telus Corp. through its large-scale data centre program. Telus is building two AI facilities in Vancouver and expanding an existing facility in Kamloops. The terms of the agreement have not been finalized, however. (Telus did not respond to requests for comment.)

Bell Canada, meanwhile, is building a 300-megawatt data centre complex outside of Regina and last year announced plans for facilities in British Columbia. The company does not have an MOU with the federal government and declined to comment on the specifics of any talks.

“Bell regularly engages with representatives from all levels of government to explore how we can work together to expand Canada’s sovereign AI infrastructure and ensure the economic and social benefits generated by AI are retained in Canada,” said spokesperson Adam Austen.

Some provincial and municipal governments are taking an increasingly skeptical approach to data centres. City council in Mississauga, Ont., is moving to pause new developments for up to a year, while the provincial government in Manitoba nixed a proposed development in June.

While Alberta has been heavily courting developers, it is not providing direct funding. Companies are expected to build new electrical generation facilities using natural gas to avoid straining the provincial grid and raising prices.

The $13-billion data centre under construction by Meta Platforms Inc. in Sturgeon County, Alta., for example, is not receiving provincial investment, and the social media company will pay $60-million for local infrastructure upgrades.