22/05/2026
AI data centre in Terrace but they claim it will be environmentally friendly 😬
Proposed Skeena Data Center Project Sparks Heated Debate Across Terrace and Kitimat
By Danny Nunes - Northern BC BUZZ
A proposed large scale AI-focused data center development in Terrace is generating intense discussion across northwest British Columbia, with residents in both Terrace and Kitimat divided on the potential economic opportunities and environmental consequences tied to the project.
The proposed development, known as Skeena Data Centers, is being promoted as a utility-style digital infrastructure campus designed to support enterprise, cloud, hyperscale, and artificial intelligence workloads.
According to information published by the company, the project would provide powered industrial land and infrastructure capable of supporting private data centers ranging from 5 MW to 50 MW, with an overall long-term buildout capacity of up to 300 MW.
The company says the project would combine hydroelectric power, onsite natural gas generation, geothermal sources, wind farms, and near shore river turbines to support the energy needs of the campus.
Skeena Data Centers also highlights Terrace’s access to industrial land, cooler temperatures, transportation infrastructure, and proximity to Prince Rupert as reasons the region is well positioned for large scale digital infrastructure development.
As public concern surrounding the proposal continued to grow online, Northern BC BUZZ submitted a lengthy list of questions directly to Skeena Data Centers Founder and CEO Christopher Chong regarding environmental concerns, water usage, Indigenous consultation, foreign investment, economic benefits, AI fears, and criticism from local residents.
In his responses, Chong acknowledged the growing backlash and skepticism surrounding the proposal.
“I am not surprised that there is resistance,” Chong stated in his written response to Northern BC BUZZ. “People in northwest BC have seen major industrial projects before. They have seen promises made, impacts debated and benefits unevenly distributed.”
At the same time, Chong argued many assumptions about the project are being formed before detailed plans, engineering studies, and environmental assessments have been completed.
“We are also asking for people to be fair and understand the real facts, not speculation, not social media posts about mega data center projects in Utah or Texas,” Chong wrote.
One of the largest concerns raised by residents involves water usage and the possibility of local waterways being impacted by cooling systems.
In response, Chong stated the project is still in early planning stages and emphasized that environmental reviews would ultimately determine whether the project proceeds in its current form.
“If credible environmental studies determine that the project would create unacceptable risks to local water systems, fish habitat, groundwater, wildlife, wetlands, or surrounding ecosystems, then the project would need to be redesigned, reduced, or not proceed,” Chong stated.
Chong also said Skeena Data Centers would support independent environmental studies and public consultation before any major approvals move forward.
“A project of this scale needs more than private discussions and technical documents,” Chong stated. “Residents should have access to clear information about the proposed site, power strategy, water use, cooling systems, emissions, noise, traffic, jobs, ownership, Indigenous participation, environmental impacts, and long-term community benefits.”
The company also addressed growing public fears surrounding artificial intelligence, surveillance, and data privacy.
“Skeena Data Centers is not a surveillance facility nor an AI only data center,” Chong wrote in his response.
According to Chong, the proposed facility would support broader digital infrastructure including enterprise systems, healthcare applications, cybersecurity, scientific research, cloud services, and Canadian data sovereignty.
“The broader need is for BC and Canada to have secure, sovereign, well regulated digital infrastructure located here,” Chong stated.
Chong also pushed back against criticism that the project would primarily benefit foreign corporations.
“My view is that we have a choice,” he wrote. “We can either build that infrastructure here, with Canadian control, local participation, Indigenous participation, environmental standards, and long-term regional benefit, or we can depend more heavily on foreign owned infrastructure located elsewhere.”
On the topic of employment, Chong acknowledged that large data centers do not create massive permanent staffing levels inside the server halls themselves, but argued the long-term economic impact could still be substantial.
“We do not want to overstate the number before the operating plan is finalized,” Chong wrote. “The objective is to build a long-term operating platform that supports local jobs, training, procurement, Indigenous participation, and regional business opportunities over the life of the project.”
He also stated that Skeena would prioritize local hiring, apprenticeships, Indigenous partnerships, and northern BC contractors if the project proceeds.
“Flying in or using temporary labour is expensive, not sustainable and hard to predict,” Chong stated. “We want people to live and work in Terrace – Kitimat related to the project.”
The responses also confirmed that early stage discussions have already taken place with the City of Terrace, BC Hydro, and Kitselas Development Corporation regarding the project.
According to Chong, Skeena has proposed the possibility of founder-level equity participation involving the City of Terrace and participating First Nations as part of the project structure.
Chong also addressed criticism regarding power usage and emissions tied to the proposal.
While Skeena’s Data Centers website references a potential 300 MW buildout, Chong stated the company is not currently assuming all of that electricity would come from BC Hydro.
“The current planning scenario contemplates dedicated behind the fence generation, geothermal, storage, supplemental renewables, and up to approximately 100 MW of grid hydro,” Chong explained.
Despite those responses, concerns from residents across Terrace and Kitimat continue to intensify online.
Many residents have expressed fears regarding water rights, fish habitat, industrial noise, power demand, AI expansion, emissions, foreign ownership, and long term environmental impacts on northwest BC ecosystems.
One commenter questioned whether corporations should ever receive priority access to regional water systems.
“Corporations should never have priority over Canadian water flow,” the resident wrote online.
Others raised concerns about the cumulative industrial pressure already facing northwest BC due to LNG, mining, forestry, transmission infrastructure, and climate change.
Some residents described the proposal as “disastrous,” while others called for Indigenous governments and environmental organizations to oppose the development entirely.
However, the project also has supporters.
Some residents argue the region should not automatically reject investment opportunities before full details are publicly reviewed.
“Bring it on! More jobs!” one supporter commented online.
Others argued the project could diversify the regional economy and create long term technical and construction employment opportunities in northwest BC.
Chong himself argued that projects like Skeena could help Canada move beyond simply exporting raw resources.
“If northwest BC is only asked to host LNG, mining, forestry, ports, and energy extraction, then much of the higher value will continue to be captured elsewhere,” Chong wrote.
With municipal elections taking place this October across British Columbia, the debate surrounding the proposed Skeena Data Centers project could very well become a major political issue locally in both Terrace and Kitimat.
For elected officials seeking re-election, and for candidates hoping to enter municipal politics for the first time, this issue may become a deciding factor for many voters.
Questions surrounding water usage, environmental protection, economic development, AI infrastructure, industrial growth, foreign investment, energy demand, and long term regional planning are clearly resonating with residents throughout northwest BC.
Whether politicians choose to support, oppose, or remain cautious on the proposal, voters are paying attention.
This is rapidly becoming far bigger than simply a discussion about a data center. It is evolving into a broader debate about what kind of future residents want for northwest British Columbia, what industries communities are willing to accept, and how local governments should balance economic opportunity against environmental and community concerns.
For now, the project remains in its early planning and feasibility stages, with major questions surrounding environmental reviews, permitting, infrastructure requirements, Indigenous consultation, public engagement, and regulatory approvals still unresolved.
As debate continues to escalate online and throughout the region, the proposed Skeena Data Centers development has rapidly become one of the most controversial industrial proposals currently being discussed in northwest British Columbia.
Northern BC BUZZ wants to hear directly from local residents.
Do you support the proposed Skeena Data Centers project in Terrace? Do you oppose it? Are you undecided and waiting for more information?
What are your biggest concerns, or what opportunities do you see for the region if the project moves forward?
Comment below and join the conversation.
*Northern BC BUZZ will also be posting the full interview questions and complete written responses from Skeena Data Centers Founder and CEO Christopher Chong as a separate standalone story in an upcoming post so residents can read his comments in full and draw their own conclusions about the proposed project.
