Ottawa proposed $15-billion incentive plan to get pension fund investment in AI green data centres, sources say

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The federal government suggested the idea to pension funds as part of a suite of potential measures in consideration for Ottawa’s fall economic statement

The federal government has considered making up to $15-billion of federal money available as an incentive to encourage major Canadian pension funds to invest in data centres for artificial intelligence that are powered by green energy, sources said.

The Globe and Mail is not identifying the sources because they were not authorized to discuss confidential government proposals that have not been released. That could add up to total investments of as much as $45-billion, should the government move forward with the proposal, and if pension funds choose to take full advantage of the government’s incentives, the two sources said. Ottawa has considered designating the development of green-powered AI data centres as a national priority, asking government offices and working groups to find ways to help speed up permitting and approval processes, one of the sources said.

Ms. Freeland and Mr. Poloz have briefed some pension funds in recent weeks on the government’s tentative ideas, which have changed over time, and discussions have been constructive, with pension fund leaders feeling comfortable with the government’s approach, the sources said.

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