Data Centers in Nanaimo — What’s at Stake?

October 2025
As Nanaimo considers a proposed data center near East Wellington Road and
Cavallotti Lodge, Nature Nanaimo is taking a closer look at the potential economic,
ecological, and cultural impacts of this development. Here’s what our community should
know.

Potential Benefits
-Infrastructure Upgrades
The project could bring improvements to roads, broadband, and power
infrastructure—benefiting nearby residents and businesses.
-Tax Revenue
Data centers in other regions have contributed millions in local and regional taxes.
Nanaimo could see some gains; however, those remain undefined and uncertain.
-Green Innovation
With access to BC Hydro’s clean energy, the facility could support renewable energy
goals and invest in sustainable technologies.
-Digital Growth
A local data center could enhance Nanaimo’s digital infrastructure, supporting cloud
services, AI, and remote work.

Economic Concerns
-Temporary Jobs Outsourced Gains
Construction jobs are short-term and often filled by outside contractors and international
engineering firms. Long-term operations require few staff, and many roles may be
outsourced—limiting local employment benefits.
-Boom-and-Bust Risk
A surge in demand for labor and materials may inflate costs for local projects, increased
electrical demand will put pressure on other utility costs such as electricity and water,
followed by a sharp drop in activity post-construction.
Public Subsidies-

Tax incentives may reduce public revenue without guaranteed community returns.

Ecological Impacts
-Water Use
The facility could consume up to 70,000 litres of potable water daily—raising concerns
considering current seasonal regional drought conditions. This does not even consider
the recent trend showing reduced snowpacks and lower water retention capacity of our
Nanaimo River watershed due to logging.
-Habitat Loss
Clearing land for modular buildings and roads may disrupt local ecosystems and wildlife
corridors. This project will intrude on our local wetlands. Wetlands destruction carries
another cost in flooding, destruction of animal habitat and the loss of ecological
diversity.
-Noise and Emissions
Cooling systems and backup generators may contribute to noise and air pollution,
affecting nearby residents and wildlife.
-Nanaimo River Watershed Stress
Water extraction for cooling could reduce flow into the Nanaimo River, impacting salmon
habitat, water quality, and community access. Land clearing may increase erosion and
runoff, degrading the watershed’s ecological integrity. Thermal discharge and industrial
noise could disrupt sensitive aquatic and riparian species.

Cultural Considerations
-Rural Character at Risk
Residents worry the project will industrialize a quiet, rural area and alter the
community’s identity.
-Community Division
The proposal has sparked strong opposition and raised concerns about transparency
and consultation.

-Indigenous Stewardship

Any development near Indigenous land must respect cultural ties and involve
meaningful consultation.

What We Recommend
• Engage the Community Ensure transparent dialogue with residents, local resource
stakeholders and Indigenous partners and demand priority rights to those preexisting
claims.
• Demand Local Benefits Push for local hiring, procurement, and community amenity
contributions. Demand stability to utility rates impacted by this newly created demand
on water and electricity usage. Costing for additional infrastructure development created
by this data center.
• Protect the Watershed. Require water conservation, erosion controls, and ecological
safeguards for the Nanaimo River.
• Set Sustainability Standards Advocate for water recycling, renewable energy, and low-
impact design.
Make your voices, Yes or No, be heard on this development. Look at the facts and don’t
be misled by vague, unanswered or deceptive promises. The depletion of our natural
resources are never costed by the politicians and business interests who stand to
benefit from this development .

Get Involved
Nature Nanaimo encourages members to stay informed, attend public hearings, and
share your voice with local decision-makers. For more information or to join our
advocacy efforts, contact us at info@naturenanaimo.ca