Data centre proponents step forward in K’atl’odeeche, Yellowknife

Some NWT voices are championing the idea of building data centres in the territory, but the scale of the projects differs.

Kátł’odeeche First Nation’s Lyle Fabian, CEO of KatloTech Communications, wants to construct a “traditional” data centre on the First Nation’s lands near Hay River.

Fabian emphasized that his proposed data centres, roughly the size of a shipping container, would be much different than newer “hyperscale,” AI data centres.

The KatloTech website says IceFox Data Center is a planned hydro-powered modular data centre campus, built to deliver sovereign cloud, co-location, and secure connectivity “while keeping Canadian data in Canada.”

“Designed for Northern conditions and long-term national resilience, IceFox combines modular data centre units, low-carbon hydroelectric power, Arctic cooling, and a dedicated high-capacity fibre backbone to create a new digital foundation for government, enterprises, telecom operators, and Indigenous nations.”

Kátł’odeeche First Nation Chief Elaine Auger was not available for comment by deadline.

However, a statement was publicly released on behalf of KFN leadership on July 30th that stated:

“Any proposed development — including the consideration of an AI data centre — must be approached with care, responsibility and due diligence. Environmental protection, water resources, potential impacts on our lands, regulatory requirements, and the interests and concerns of our members must all be carefully considered before any decisions are made.”

Fabian said the concept of a massive AI data centre powered by a dammed Mackenzie River is a terrible idea.

“I’d never allow a hyper scaler to come into the Northwest Territories, ever,” he said, citing environmental impacts of water consumption, building footprint and potential negative impacts from a hypothetical dam as just some of the reasons why.

However, in Yellowknife, prospecting geologist Lou Covello contends that the NWT should construct a hydro dam on the Mackenzie to power Alberta, Saskatchewan, and an NWT-based AI data centre.

He recently sent NNSL Media an essay titled, Canada’s Trillion-Dollar Opportunity: The Mackenzie River Hydroelectric Complex and the AI Data Centre Revolution.

Covello, who admits that his article was written in part by AI using Microsoft’s Copilot, was motivated to compose his piece after reading a similar article by political commentator Spencer Fernando.

That was called: Why Supporting Data Centre Construction is a Test of Whether Canada Really Wants to be a Prosperous Nation.

Covello stated that he believes such a project would strengthen Arctic sovereignty, and that the surplus electricity produced by the project could be exported to Alberta and Saskatchewan, assisting in those provinces’ transition away from fossil fuels.

He noted that the idea for a hydro dam comes from F. Pierre Gingras, a retired Hydro-Quebec engineer who wrote about the idea in a document called, The Mackenzie River Hydroelectric Complex – Concept Study.

Covello compared the concept of resisting technological advancement to the fears that surrounded the industrial revolution.

Fort Liard’s Acho Dene Koe First Nation is one the NWT’s communities that has already signalled its concern for developing NWT data centres.

The community sits on the Liard River, near the border of the NWT, BC, and Yukon, and connects to the Mackenzie River further downstream.

While the First Nation says it plans to take advantage of opportunities that enable long-term growth and development, its support for such projects will hinge on how responsibly they are planned and carried out, Boyd Clark, band general manager, stated on behalf of Chief Eugene Hope.

“We recognize that new technologies and infrastructure can bring economic benefits, training opportunities and sustained prosperity — if they are planned responsibly and in partnership with Indigenous governments,” the statement reads.

“Our nation has always been forward-looking, but never at the expense of our lands, waters or future generations,” said Hope.

“We welcome innovation and new opportunities, but they must be built on respect, responsibility and long-term benefits for our people.”

The letter also emphasizes the risks associated with AI data centres, including their massive energy consumption, emissions impacts on the environment, large structural footprint and significant usage of fresh water.

“Our territory already carries the burden of projects that were not properly closed, remediated or reclaimed,” reads the letter.

“Acho Dene Koe First Nation will not accept a future where we are again left with environmental damage — whether from a mine, a hydro station or an AI data centre.”

Kody Ferron/Local Journalism Initiative Reporter/Yellowknifer

A petition for IceFox Data Center at change.org:

Building K’atl’odeeche’s Future, Together

“My name is Lyle Fabian. I’m from K’atl’odeeche First Nation, and I’m asking for your support on something that matters deeply to our community.

“There’s an old radar site on our reserve lands — the former Nav Canada MOT (Ministry of Transport) radar facility, located 17.5 kilometres from our community. For years, it’s sat unused.

“We can change that. KatloTech is ready to build the IceFox Data Center there: a 20,500 sq.-ft. facility powered by clean hydro energy, owned and governed by us, creating real jobs and real wealth for our people.

“This isn’t a distant dream. The site is already prepared — a 400 metre x 400 metre gravel pad, existing road access, aerial power poles already in place, and surrounded by boreal forest.

“We’re using what’s already there. We’re not asking for massive environmental disruption. We’re asking to activate what’s already ours, on Treaty 8-protected reserve land.”