In the southeastern mountains of British Columbia, a firm that has been engaged in bitcoin mining since 2018 is looking to convert its operations at Christina Lake into an artificial intelligence data center. DMG Blockchain Solutions disclosed on June 1 that it has entered into a letter of intent to supply processing power for AI data centers from its Christina Lake facility to an undisclosed tenant. According to Grace McGregor, a director with the Regional District of Kootenay Boundary, representing Christina Lake, residents and local authorities are displeased with DMG Blockchain Solutions due to several ongoing violations of local bylaws.
McGregor expressed frustration, stating that attempts to communicate with the company have been unfruitful as they have been unresponsive. DMG Blockchain Solutions intends to equip its bitcoin mining site with the necessary servers and cooling systems to operate an AI data center. The company plans to lease out its servers and bandwidth to an unnamed AI firm, with operations expected to commence by December 31.
Concerns have been raised by McGregor regarding the environmental impact, particularly on the water table and residents of Christina Lake, following the transition of the building from a bitcoin mining facility to an AI data center. Sheldon Bennett, CEO of DMG Blockchain Solutions, mentioned in an interview with CBC’s Radio West that the company is open to participating in a public hearing and has been in contact with the federal Ministry of Artificial Intelligence and Digital Innovation. Bennett addressed environmental worries, stating that modern water-efficient technology will be used in a closed-loop system for cooling purposes at the data center.
McGregor highlighted that since 2018, DMG Blockchain Solutions has been carrying out renovations without the required permits, breaching local zoning regulations. The Regional District of Kootenay Boundary issued stop-work orders and requested the owner to apply for a building permit after notifying them of the lack of a valid permit for the alterations made to the industrial building in Christina Lake. Despite a subsequent incomplete development permit application, no building permit has been issued to date.
Furthermore, McGregor emphasized that the current alterations made to the building and property are non-compliant with the area’s zoning regulations and lack valid permits. Following a resolution by the regional board of directors, a notice has been placed on the property’s title to inform potential buyers of the contravened regulations. DMG Blockchain Solutions has stated that they are collaborating with the regional district to address the outstanding building permit issue.
Residents of Christina Lake have initiated a petition opposing the AI data center plans, calling for an environmental assessment and public hearing before further renovations proceed. The announcement in Christina Lake coincides with the federal government’s push for sovereign AI technology, amid rising opposition from Canadian residents concerned about the rapid growth of data centers nationwide. B.C.’s Minister of Energy and Climate Solutions, Adrian Dix, assured that the provincial government is closely regulating water and electricity usage for AI data centers, emphasizing the importance of managing the impact of AI and data center expansion responsibly.