As interest in data centre development continues to grow across northwest B.C., Terrace is taking a closer look at how the facilities could fit into the community.
Terrace council has directed staff to examine whether data centres should be regulated differently from other industrial developments, including whether future projects should require site-specific council approval before being permitted in urban industrial areas.
The move comes amid growing discussion about the possibility of data centre development in the region. Earlier this year, reports emerged suggesting a developer was exploring northwest B.C. as a potential location for an artificial intelligence focused data centre, prompting questions about how communities would manage projects that can require significant amounts of power, water and supporting infrastructure.
Councillor James Cordeiro, who brought forward the motion, said the review is not intended to determine whether any specific proposal is acceptable, but rather whether data centres have characteristics that warrant additional public oversight.
“As it stands now, if a data centre fits within the industrial zoning, it could be put there without the need for council approval or triggering a public hearing,” Cordeiro said.
“The purpose of this is to require a data centre use to go through a process that would provide public input and allow council to ask questions about impacts, mitigations and whether those mitigations are sufficient.”
In a memo accompanying the motion, Cordeiro wrote that data centres have characteristics that “may have impacts materially different from any conventional light industrial uses” and that it may be in the public interest for council to require a case by case review before permitting them within the city’s urban boundaries.
The memo outlines several potential considerations unique to data centres, including noise, water demand, electrical demand, lighting, security and visual impacts.
According to the memo, data centres can generate “continuous noise from routine operations related to cooling, equipment, pumps, transformers, backup systems and related mechanical infrastructure” and operate 24 hours a day. It notes those impacts may be more noticeable during the evening and overnight hours when ambient urban noise is reduced.
Cordeiro also pointed to electrical demand as a key consideration, writing that data centres require “substantial and continuous electrical power.” The memo states additional power supply infrastructure could create further land use impacts including noise, visual impacts, backup generation emissions and emergency response considerations.
The review will examine whether Terrace’s zoning bylaw should define data centres as a separate land use category rather than treating them like other industrial developments.
Councillor Inder Dhillon said he has heard concerns from residents about the potential impacts such facilities could have on the community.
“I have heard concerns from residents regarding the potential impact of data centres, including power consumption, noise, water use and compatibility with surrounding areas,” Dhillon said.
“I believe it is important that consultations address those concerns.”
Mayor Sean Bujtas said the review is ultimately about ensuring residents and council have an opportunity to weigh in on future proposals should they arise.
“We don’t have much of an ability to give residents input and sometimes ourselves,” Bujtas said.
Several councillors noted that data centres were not contemplated when the city’s zoning bylaws were originally developed and that the review would allow council to better understand its options moving forward.
Council unanimously supported the motion and staff will now prepare a report outlining potential options for regulating data centres within the city.
