Demands for data centers are exploding around the world mainly due to advances in artificial intelligence.
The Quebec company is currently well positioned with its campus in Lévis, but it will reach the end of its project sooner rather than later.
“Artificial intelligence is becoming more and more energy intensive. At the beginning, we rented one megawatt, now customers are asking for between 10 and 20 megawatts and it will increase. In Lévis we have a capacity of 140 megawatts supplied by Hydro-Québec,” explains Qscale CEO Martin Bouchard.
The first two phases of the Qscale campus in Lévis with in the foreground, the vacant land where modules 5, 6, 7 and 8 will be erected. Phases 3 and 4 will be located behind the first two buildings already constructed. (Frédéric Matte/Le Soleil)
“We had to erect the buildings over eight years. We wanted to make sure we filled the spaces before starting construction, but we had to speed up. The demand is very strong,” he adds.
Of the eight phases, two have already been completed. Mr. Bouchard estimates that all of the buildings will be rented in 6 to 18 months and built by the end of 2026.
Refusal from Hydro-Québec
To meet demand, Qscale will therefore have to expand if the company wants to continue its growth.
The problem? Hydro-Québec and the Ministry of the Economy, Innovation and Energy (MEIE) have considerably reduced the allocation of electricity blocks. Indeed, with the energy challenges facing Quebec, a more rigorous process for selecting industrial projects of more than five megawatts was put in place in 2023.
“Four years ago, we were told: “no problem, we will give you electricity”. Hydro-Québec sold the surplus outside. Overnight, we were told it’s over.”
— Martin Bouchard, CEO of Qscale
The state corporation rejected the expansion in Lévis for four additional modules. However, according to Martin Bouchard, Qscale can increase its station to 250 megawatts.
A 50 megawatt project was also refused in Saint-Bruno-de-Montarville, in Montérégie, in February 2024.
“We offered our heat free of charge to Saint-Bruno and Énergir to heat upcoming real estate projects in the area. In summary, Hydro’s megawatts would be used twice and there would be almost no energy loss,” he argues.
A dialog instead of a form
Mr. Bouchard does not understand the position of the government, which does not hesitate to inject millions of dollars to bring Northvolt to Quebec.
“The hardest part was that at the beginning, people didn’t believe in us. But look, the requests are exploding. We won the North America Data Center of the Year award. We have reached another level,” sighs Mr. Bouchard.
The CEO of Qscale says he is open to all scenarios, except that of buying land then making a request to Hydro-Québec through a form.
“I would like a discussion with the government to find out their expectations. We are able to settle almost anywhere. One of the largest wind farms in North America will be built in Saguenay. We raise our hands. We can even add optical fiber to connect everything,” he suggests.
Especially since Qscale has set itself the mission of being as ecological as possible.
Martin Bouchard, CEO of Qscale (The Sun)
“Computers work like radiators. They heat up and we capture 98% of the heat to redistribute it. But even better, since our customers ask us to be operational 24 hours a day, we have generators. We can disconnect from the Hydro-Québec network during peak hours. And it’s not winter that we consume the most. It’s summer with air conditioning,” he says.
“Microsoft will restart the Three Mile Island nuclear power plant in Pennsylvania to produce 850 megawatts just for their data center. A power plant where the most serious nuclear accident in the United States occurred,” he continues.
Courted by other provinces and countries
Martin Bouchard insists. He needs energy now, “not in five years”.
“We hold $1.5 billion. We can invest without any subsidies. Americans and Europeans come to see us. They require a place in our data center to develop their artificial intelligence,” he says.
“Can Quebec really afford to miss out? If I don’t have the energy blocks, I’ll have to look at other alternatives. We are Quebecois. We want to expand here, create wealth and jobs, but Canadian provinces and several countries are interested in us.”
— Martin Bouchard
“I have just returned from a conference in the United States. Companies invest between 5 and 20 billion in data centers. We are talking about 1000 megawatt projects and here we were told that 140 megawatts was a lot,” he quips.
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