Tag Archives: David Eby

Vancouver (Canada), AI data centres, and the Mayor’s 11 AI agents (3 of 3)

The first two parts of this three-part series on AI data centres focused on environmental issues (Environmental impact of AI data center(re) boom: a roadmap [1 of 3]} a May 20, 2026 posting and (AI climate impact much smaller than many feared? So says a study from University of Waterloo, Canada [2 of 3]) a May 21, 2026 posting. This last part brings it home.

Featured in my May 8, 2026 posting, the 2026 Web Summit has provided an unexpected bonanza of fodder for local gossip about technology (AI data centres), local real estate problems, a glimpse into federal/provincial/municipal politics, and the Mayor.

AI data centres in Vancouver

One more AI data centre is being planned for Vancouver but first a little history. There was an AI data centre announcement in January 2026, from my February 6, 2026 posting, Note: My February 6 posting was a deepish dive into energy and water vis-à-vis data centres, which included some local nnews,

… as data centres become more important in their real estate markets as this January 31, 2026 article by Kenneth Chan for the Daily Hive could be said to hint at, Note: Links have been removed,

One of downtown Vancouver’s largest office development projects, first planned during the pre-pandemic office market boom, will not proceed as originally approved [emphasis mine], given the prevailing weak office market conditions.

Westbank’s major downtown Vancouver office tower project at steam plant site pivots to hotel, residential, and data centre uses

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Westbank, a real estate developer, also features in the latest announcement about two more AI data centres (a second one at another Westbank property in Vancouver and a third in Kamloops at an unnamed property), from a May 11, 2026 article by Kenneth Chan for the Daily Hive, Note 1: NVDIA “is an American multinational technology company headquartered in Santa Clara, California” according to its Wikipedia entry; Note 2: A link has been removed from the following excerpt,.

Telus to build massive AI data centres at two Westbank properties in Vancouver

Canadian telecommunications giant Telus is moving ahead with plans to build a major sovereign artificial intelligence (AI) infrastructure network in British Columbia, following overwhelming demand for its first AI supercomputing facility in Quebec.

The Vancouver-based company announced today that it is working with the Government of Canada and local developer Westbank on a proposed cluster of AI-focused data centres designed to keep Canadian AI computing power and sensitive data within the country. The project forms part of the federal government’s Enabling Large-Scale Sovereign AI Data Centres initiative, aimed at strengthening Canada’s domestic AI infrastructure.

Telus notes the three-site B.C. network will eventually scale to more than 60,000 graphics processing units (GPUs) and 150 megawatts of computing capacity by 2032. The facilities are planned for Kamloops, which is expected to launch later this year, and two locations in Vancouver, which will be fully operational before the end of this decade.

The infrastructure will be powered by advanced computing systems from NVIDIA [emphasis mine], including the company’s latest AI hardware and networking technologies. Telus emphasized that Canadian businesses, post-secondary institutions, governments, and other organizations will be able to train and deploy AI models domestically instead of relying on foreign cloud infrastructure.

The announcement comes less than a year after Telus opened its first Sovereign AI Factory in Rimouski, Quebec. According to the company, the facility is already fully booked by customers and has been recognized on the TOP500 list of the world’s fastest supercomputers.

The company’s Sovereign AI Factory platform is designed to support the full AI development process — from training large-scale models to deploying AI applications — entirely within Canadian-owned and operated infrastructure.

“We are incredibly proud to be working with the Government of Canada to help build Canada’s sovereign AI infrastructure [emphasis mine],” said Darren Entwistle, the outgoing president and CEO of Telus, in a statement. Entwistle will retire at the end of June 2026.

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Both facilities in Vancouver are being pursued as a direct partnership with Westbank.

The first new Vancouver AI data centre facility will be achieved at the 1977-built, six-storey M3 office building at 111 East 5th Ave. — home to a portion of Hootsuite’s headquarters office for more than a decade. It will see an initial launch in late 2026, with a gradual expansion through 2028 to reach its ultimate on-site size of 77,000 sq. ft. data centre — achieved from the full conversion of the building’s office levels and two underground parking levels, plus the creation of a ground-level restaurant to better serve the area’s office workers.

As part of Westbank’s cluster of buildings in this Mount Pleasant area that form the developer’s Main Alley tech campus of mixed-use office and residential buildings, M3 was originally slated for an eventual renovation for its continued and expanded office uses, including the vertical construction of three additional office floors above the 1970s-built structure. But this pre-pandemic plan is no longer being pursued, with the building’s long-term use pivoting to the Telus AI utility strategy.

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“People toss around the word innovation lightly, but this is a story of true Canadian innovation,” said Ian Gillespie, founder and CEO, Westbank.

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Canada’s sovereign AI infrastructure, eh? Well, the first AI data centre in Vancouver (announced in January 2026) is expected to come online in 2029 at 150 West Georgia St., formerly 720 Beatty St.

Pushback (and some context)

A May 12, 2026 article by Amir Ali in the Daily Hive provides some context both pro and con (resistance to the Vancouver AI data centres is in the following excerpt), Note: Links have been removed,

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Telus suggests the project could generate $9 billion in economic activity in the province [emphasis mine], and create over 1,000 construction jobs, with hundreds more in long-term tech and operation roles.

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In 2024, the Harvard Business Review compiled some data on the environmental costs of AI [emphasis mine].

“The training process for a single AI model, such as a large language model, can consume thousands of megawatt hours of electricity and emit hundreds of tons of carbon [emphasis mine],” the report said.

“All these environmental impacts are expected to escalate considerably, with the global AI energy demand projected to exponentially increase to at least 10 times the current level and exceed the annual electricity consumption of a small country like Belgium by 2026.[emphasis mine]”

The review concluded that AI’s environmental impacts have to resonate with the priorities and interests of local regions.

EarthJustice, a reputable non-profit public interest environmental law organization, also shared some insights on data centres late last month.

“Unchecked electricity demand from data centers threatens to increase health and climate-harming pollution, deplete water supplies [emphasis mine], and undermine our transition to clean energy,” it said.

EarthJustice says that nearby communities suffer from an increase in local air and water pollution, electronic waste, and noise pollution. It also said that data centres require around one to five million gallons of water per day.

“Although less water-intensive technologies are available, most data centers still rely on inefficient evaporative cooling.”

“Data center companies often negotiate secretive, special contracts for discounted power rates with utilities that shift costs onto regular household utility bills,” EarthJustice suggests, and we’ve reached out to BC Hydro for more information relating to local rates.

According to Telus, the Vancouver AI data centres, which work differently from traditional data centres, would be powered by 98 per cent renewable energy. [emphasis mine]

“A closed-loop liquid cooling system will reduce cooling energy consumption by 80 per cent [emphasis mine] compared to traditional data centres.”

“Importantly, in the age of AI, these data centres address Canada’s growing need for security and a Sovereign AI Solution – by providing 100% Canadian controlled infrastructure, data protection, domestic oversight and zero foreign dependency,” Telus said in its media release.

Westbank told Daily Hive that the M3 data centre’s site in Mount Pleasant currently hosts an existing data centre.

“There is no change in use, this is a case of adaptive reuse to support upgraded infrastructure. The urban locations of both data centres allow for the connection to district energy, which is what allows the projects to achieve low carbon outcomes,” Westbank added.

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Ali’s May 12, 2026 article does a good job of noting the advantages and disadvantages; he also presents some reaction/pushback from politicians and from the community, Note: Links have been removed,

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Many have weighed in on the development, including new federal NDP Leader Avi Lewis, who said we should be building affordable homes, a network of public grocery stores, electric buses and an east-west clean energy grid.

“Not massive corporate AI data centres unleashed without any democratic debate,” Lewis said in a post on X.

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Lewis wasn’t the only political leader weighing in.

At the provincial level, Emily Lowan, the leader of the B.C. Greens said while data sovereignty is important, handouts for big AI isn’t the way to get there.

Others responded with shock at the proposed Mount Pleasant location.

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Some brought up water restrictions, making points about how much water will be needed for these centres. Vancouver City Councillor Peter Meiszner responded to that concern.

Peter Meiszner @PeterMeiszner

Water consumption will be 90% lower than traditional data centres, with plans to incorporate recycled water from BC Place. (source @TELUS)

3,308 Views

Lowan responded to the environmental claims in a statement to Daily Hive Urbanized.

“TELUS’s claim that their centres will be powered by 98% clean energy is dubious at best. We’re already importing American coal-powered electricity to deal with our energy crisis. This energy crisis is caused by drought conditions, which will only be made worse by the extensive water usage of data centres,” she said.

Lowan said, “We need a moratorium on AI data centres.”

“Our government should not be celebrating a handout to TELUS to build AI data centres in the heart of Vancouver. Billionaires are hoarding our wealth, and now, our government is letting them hoard even more of our resources.”

Daily Hive Urbanized heard from Councillor Sean Orr about the development, too.

He said, “If we were to ask the people of Vancouver how we should use our infrastructure, our energy, and our space, would they pick data centres or would they pick something else?”

Orr wondered what the impact would be on the Vancouver electrical grid, and whether the corporations and private companies would be paying for additional infrastructure or whether that cost would fall on residents. 

“Currently, my understanding is that data centers have a short shelf life before being out of date with newer chips, and the chips themselves don’t last five years. We are building something that will require billions in assets but may become outdated three years after its built,” Orr said.

“Say what you will about pipelines, but they don’t become irrelevant after three years. Is it sovereign infrastructure to keep building something that is extremely expensive, and becomes outdated a year or two after construction completes?”

“Is it sovereign infrastructure to build something that may become a stranded asset very soon? I believe a bunch of data center construction projects are being paused for these very concerns right now,” Orr said. 

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On the Vancouver subreddit, most of the opposition seems to be in regard to the chosen locations.

“It seems absolutely nutso to use this sort of transit accessible downtown real estate for something that would mostly house computers and generate relatively few jobs,” a Redditor said, adding, “Next to BC Place, that should be a hotel or office tower. You could put a data centre anywhere else in Metro Vancouver. Baffling.”

Someone else asked, “Doesn’t Vancouver already have water problems?”

What BC Hydro is saying

According to BC Hydro, the utility and the Province are taking a “managed and phased approach to serving these large new loads to protect affordability and reliability for residential customers.”

When it comes to high-demand projects like data centres, BC Hydro says there’s a structured and “competitive” process with capped power allocations, rather than unlimited first-come access.

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[Comments]

AliasCapricious 2 days ago

People complain we have an economy overly reliant on real estate, then turn around and complains about frontier economic infrastructure. The job part isn’t the main thing, but rather Canadian tech companies have the infrastructure needed to be not dependent on US data infra. It keeps our start ups here and thus grow our high-margin tech sector.

The location is somewhat dubious, but these are the sort of thing we need in the next decades. If we are short on water and power we should be doubling down on renewables (wind/solar/hydro) and water infrastructure, since both will be required anyways. Energy demand is what drive further investments in those sectors.

Tin Man 2 days ago

A few years back, the news outlets warned (prepared?) the citizens of the Divided States of America, that there would be “rolling blackouts” due to the high energy demands of local AI data centers.

Is this what B.C. has to look forward to?

Refrigerators, ovens, heating, air conditioners and all the other devices that families depend on will be powered down so that the wealthy owners of these data centers can continue reaping massive wealth?

Jim Bob 2 days ago

No.

We are already looking at water shortages this year. BC Hydro is also under strain. Allowing these data centers to be built here in Vancouver is only going to cause skyrocketing bills for everyone living here.

They should be building these in remote areas, where they don’t need additional cooling and they can build out their own power. Alberta should have plenty of suitable locations. Why not go there?

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cccccc 2 days ago

Residents are split on this? I’ve yet to see someone supporting it. Bad idea, bad locations, bad use of tax payer money.

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Steven Zur 2 days ago

In the news this month – Westbank lawsuits and court documents indicating close to insolvent, Westbank towner nearly complete on Joyce Street goes into receivership, and then out of the blue the Federal government is support Telus’s building datacenters on two Westbank properties. Nothing more than a government handout to a poorly managed property development company.

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Owen 3 days ago

I’d rather see entertainment uses at both locations

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Sovereign data centres in Canada and a real estate developer in trouble

How can a data centre be made sovereign? That is a tricky question; something I’ve already hinted at. Kyle Bakx’s May 14, 2026 article for the Canadian Broadcasting Corporation’s (CBC) news online website details more of the issues,

Canada wants to build data centres that are not just physically located here, but controlled here — a distinction experts say could determine whether the country can reduce its dependence on U.S. tech giants and keep Canadian data subject to Canadian rules.

But as Ottawa reviews more than 160 data-centre proposals to support the growing demands of artificial intelligence, the promise of “sovereign” infrastructure is already running into a harder question: how much control Canada can really have over data centres [emphasis mine] that may still rely on foreign hardware, foreign customers and digital networks that do not always respect national borders.

“This is probably going to be one of the single biggest tech issues that we are going to deal with as a country,” said Ritesh Kotak, a Toronto-based lawyer and technology advisor.

Many countries, including Canada, are heavily dependent on U.S. firms for digital and cloud services [emphasis mine] — the remote computing and data storage offered by technology giants such as Amazon and Microsoft.

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There are other problems too. For example, data centres are considered energy and water hogs (see my February 6, 2026 posting “AI is an energy/water hog. Where is all the power coming from? plus UN defines new ‘era of global water bankruptcy’, ” which also mentions the January 2026 announcement of the first data centre in one of Vancouver’s downtown buildings being developed by Westbank.

Before moving onto the Westbank issues, you might be interested in this 8 mins. interview (aired May 19, 2026) with Chris Madan, Telus (former) Vice-President of Digital Sales & Service; (current) Vice–President Digital Product and Head of AI Factories..Here’s how the segment is described on the CBC Radio’s Early Edition with Stephen Quinn webspace.

Chris Madan, the Telus head of AI factories, responds to concerns over health and environmental impacts surrounding the three-site AI data centre cluster set for construction in B.C.

Madan is a salesman determined to minimize any concerns and promote the company’s interests. Consequently, the value is in hearing how he deflects all the criticisms. (I don’t have a lot of patience with puffery but it can be useful.)

For a contrasting view, there’s Simon Enoch, Andrew Longhurst, and Rachel Pettigrew’s May 18, 2026 article “Vancouver Is Getting AI Data Centres. That’s Not Good” for The Tyee. While I am more sympathetic to their approach, it is unrelentingly negative and fails to mention any possible benefits.

Noise as a problem with data centres was news to me and is mentioned both in the CBC interview and in The Tyee article.

Now, onto the real estate developer.

Westbank towers in receivership

Both Vancouver properties being rezoned to allow the data centres are being developed by Westbank, which is currently experiencing money difficulties, from a May 12, 2026 posting on cityhallwatch.wordpress.org, Note: Links have been removed,

Westbank tower in receivership (5055-5083 Joyce St)

Westbank’s rental tower at 5055-5083 Joyce Street is now under receivership. KSV Advisory Inc. is the receiver and a number of documents and court filings are available on their website. OPTrust was owed approximately $109,211,965. Secured and unsecured creditors have claims of $292,993,043. We’ll include additional links and details as this story unfolds. Included below are several photos of the rental tower at 5083 Joyce Street and the surrounding context.

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This May 11, 2026 article by Liezel Once for CMP magazine dives deeper into the developer’s money woes, Note: A link has been removed,

Westbank’s Joyce tower placed in receivership

Court oversight, $274 million in debt, and a former executive’s sworn claims paint a troubling portrait of a once-iconic developer

A 35-storey rental tower in east Vancouver associated with one of Canada’s most prominent development firms has been placed under court-supervised receivership, adding fresh urgency to a deepening cycle of real estate insolvencies.

The B.C. Supreme Court granted a receivership order on April 27, 2026, over two corporate entities — 5055 Joyce Holdings Inc. and 5055 Joyce Property Inc. — tied to a near-complete mixed-use rental development at 5083 Joyce Street in Vancouver, known informally as “Joyce 2.”

The application was brought by OPTrust [Ontario Public Service Employees Union and Government of Ontario pension fund] Joyce Financing Corp., which is owed approximately $109.2 million on a loan that matured without repayment on December 31, 2025.

The project, developed by Vancouver-based Westbank Holdings Ltd. — a firm founded in 1992 by CEO Ian Gillespie that built some of the city’s most architecturally ambitious buildings over three decades, including the Shangri-La hotels in Vancouver and Toronto — consists of 360 residential rental units, roughly 4,500 square feet of retail space, and 87 underground parking stalls.

Leases have already been executed with commercial and residential tenants, and certain units are occupied.

Court filings show OPTrust’s loan originated in May 2021, initially advanced at $40 million and later increased to $85 million.

The financing carried an interest rate that escalated to 11% after September 2024 and was secured by mortgages, personal property security, share pledges, and guarantees from related parties, including Westbank Holdings Ltd. and founder Ian Gillespie personally.

OPTrust issued a demand for repayment on January 13, 2026.

OPTrust, officially the OPSEU Pension Trust, is one of Canada’s largest defined-benefit pension funds, managing over $27.2 billion in net assets as of year-end 2025 and administering retirement benefits for 118,000 members, primarily Ontario public service employees.

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The receivership is not the only legal matter Westbank is managing.

In a sworn affidavit filed April 29 [2026] in B.C. Supreme Court as part of a continuing breach-of-contract action, former employee Rhiannon Mabberley alleged that Westbank is in a “financially precarious position” and has laid off nearly half of its workforce, and that multiple real estate holdings have been liquidated to cover accumulated debts.

None of these claims have been proven in court [emphasis mine]. Westbank declined to confirm the layoff allegation.

“We cannot comment on matters before the courts, but we would note that none of these claims have been proven,” Westbank spokesperson Ariele Peterson told media.

Mabberley is suing Westbank for $1.2 million she alleges is owed under an employment agreement. Westbank has countered in court that the payment was conditional on project profits that were not achieved.

Her lawyers sought pretrial garnishing orders against Westbank’s corporate bank accounts; an affidavit states that a $1.2 million order ultimately yielded just $32,025.37, which Mabberley says she believes suggests the company has moved funds to protect assets from creditors.

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For anyone unfamiliar with Vancouver and its relationship to real estate developer’s, it’s an important, some might say vital, one, which may explain why Justin McElroy, the CBC’s local municipal affairs reporter wrote this February 24, 2026 article (CBC news online) about Westbank’s legal fracas with one of its former VPs, Note: Links have been removed,

A lawsuit by a former vice-president of a prominent Vancouver development company appears to be revealing more details of many of its biggest projects taking a turn for the worse.

In December [2025?], Rhiannon Mabberley filed a civil claim against Westbank Project Corp., suing for a breach of contract when she left her role as vice-president of development in the first half of 2025.

Mabberley argued Westbank owed her $1.2 million, based on a previous employment agreement, in her claim.

In its response, Westbank says those payments were “dependent on the profits received by Westbank” on projects she was a part of, and those profits were not met.

The response by Westbank does not go into details as to why those profits were not met.

But an affidavit filed by Mabberley, which was first reported by Bloomberg News, reveals what she says is a text message to her from Westbank founder Ian Gillespie — and provides an intimate and stark commentary on the state of his company.

The allegations laid out in the affidavit and wider statement of claim have not been proven in court.

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The alleged text was sent by Gillespie to Mabberley in September, four months after Mabberley left Westbank and three months before she took legal action.

In it, Gillespie references several high-profile development projects in Vancouver that are or formerly were under Westbank’s responsibility, and says that they are not profitable, including:

  • The Sen̓áḵw complex [emphasis mine] at the foot of the Burrard Bridge, which was originally a 50/50 partnership with the Squamish Nation before Westbank sold its share to Ontario Pension Trust [emphasis mine]. Gillespie texts that “the last minute negotiations resulted in me having to accept a 30% haircut from the original price … which itself was 50% less than we had agreed to last year.”
  • The recently opened Alberni and Butterfly buildings in downtown Vancouver. Gillespie texts that “Alberni still has many unsold units and … Butterfly is well over budget and closings are slow and uncertain.”
  • The massive Oakridge Park complex, which began in 2019 and has yet to open. Gillespie texts that “Oakridge is way behind schedule.”

The text ends with Gillespie saying he would offer Mabberley $200,000 “and then we can both go our separate ways,” adding that “it’s unfortunate but it’s the reality of the industry these days.”

In a statement, Westbank would not comment on the veracity of the text messages, saying it has not been proven in court.

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The politics: Westbank, the federal/provincial/municipal governments, and AI data centres

Purely speculation on my part but I wonder if there’s hope that the AI data centres will help Westbank with its current financial woes. Westbank isn’t the only real estate developer experiencing problems as this May 19, 2026 posting on City Hall Watch makes clear,

City Council Preview May 19-20, 2026: Electronic billboards, Developer bailouts (CAC deferrals), 3 Broadway Plan rezonings, Italian Day grant and more

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Staff are asking Council to again extend CAC payment [Community Amenity Contributions (CACs) are in-kind or cash contributions provided by property developers when Vancouver City Council grants development rights through rezoning.] deadline for 4 downtown tower sites (1450 West Georgia St $8,900,000, 1157 Burrard St $10,600,000, 1640-1650 Alberni St $32,700,000 & 1668-1684 Alberni St $37,041,000). This is the third time the request to extend the timeline for CAC payments has gone to Council, with the last extension set to lapse on May 31, 2026. The new target is suggested as May 31, 2028, which is well into the next term of a future Council. Should Council be allowing agreed-upon CAC payments slide again? Is this another developer bailout? [emphasis mine]

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Vancouver’s city hall is not the only government lending assistance to developers. Way back in time there was this September 7, 2022 posting on Bob Mackin’s The Breaker pointing to a cozy relationship between Westbank’s Ian Gillespie and the federal Liberal government then lead by Prime Minister Justin Trudeau, Note: Links have been removed,

Ian Gillespie, the Westbank Corporation CEO, accepted a token 50 cent payment from members of the Squamish Nation during a ceremony under the Burrard Bridge on Sept. 6 [2022], where Prime Minister Justin Trudeau broke ground to begin the four-phase, 11-tower Senakw condo project. [emphases mine]

Squamish Nation members agreed to a 50-50 partnership in 2019 with Westbank to build 6,000 units on 4.7 hectares of Kitsilano Indian Reserve 6 regained through court settlements. Since then, Westbank’s share was reduced to 30% and OP Trust [emphasis mine], the Ontario Public Service Employees Union and Government of Ontario pension fund, now holds 20%. 

By 2029, up to 10,000 people could be living in the rental towers on either side of the bridge. A consultant’s estimate from 2019 suggested the deal could generate as much as $12.7 billion in cashflow for the band and developer [emphasis mine]. 

Trudeau was accompanied by four cabinet ministers, Patty Hajdu (Indigenous services), Ahmed Hussen (housing), Marc Miller (Crown-Indigenous relations) and Jonathan Wilkinson (natural resources). Before the start of their three-day cabinet retreat in Vancouver, Trudeau announced a $1.4 billion loan through Canada Mortgage and Housing Corporation to finance half the units, touting it as the largest loan in the Crown corporation’s history [emphasis mine]. CMHC spokesman Leonard Catling said the Rental Construction Financing Initiative is providing $668 million for phase one and $745 million for phase two. The loan is on a 10-year term, fixed interest rate and 50-year amortization. 

“While we cannot comment on the interest rate for any specific RCF loan, our interest rate generally is lower than alternative financing available in the market,” Catling said.

Gillespie, a Liberal Party supporter and proprietor of Trudeau’s preferred luxury hotel [emphasis mine], the Fairmont Pacific Rim, sat beside NDP Vancouver-Point Grey MLA David Eby [emphasis mine]. Though the construction site is in the Vancouver-False Creek provincial riding, Eby is the frontrunner to replace John Horgan as Premier this fall [Eby is now Premier of BC]. The Squamish Nation is a partner in the MST Development company with the Musqueam and Tsleil-Waututh nations in the Jericho lands project in Eby’s riding. Some of that land is proposed for an Olympic Village, if the NDP government backs the Canadian Olympic Committee bid for the 2030 Games and the International Olympic Committee chooses Vancouver next May. 

Seated nearby were directors of the Squamish Nation’s economic development company, Nch’kay, including Mike Magee, former Mayor Gregor Robertson’s chief of staff [emphasis mine], and NDP insider Joy MacPhail.

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To sum up, Gillespie/Westbank gets a huge loan at low cost from the federal liberal government and runs into financial trouble a few years later. A former partner agency, OP Trust, forces one of Westbank’s housing projects (not the 11-tower Senakw condo project) into receivership. Meanwhile, Vancouver city hall rezones a couple of Westbank projects so the projects can now house AI data centres. Rather timely, given that there’s a federal Liberal government push for ‘sovereign data centres’ in Canada.

It’s almost like a fairy tale where magical characters pop in and out of the story and wondrous coincidences occur. The Justin Trudeau character transforms into Mark Carney who now leads the federal Liberal government. Gregor Robertson (former Vancouver mayor) transforms into a federal Liberal Minister of Housing [emphasis mine] and Infrastructure and Minister responsible for Pacific Economic Development Canada [emphasis mine]. And of course, there’s the previously mentioned transformation of development projects into housing for data centres at a time when a shortage of housing for people has become a national issue.

The magic doesn’t stop. My May 8, 2026 posting about the 2026 summit notes the presence of Robertson, Eby (current BC Premier), and Ken Sim, current Vancouver mayor at the 2026 Web Summit along with Canada’s federal Liberal Minister of Artificial Intelligence and Digital Innovation, Evan Solomon in what has been touted a great opportunity for local business and startups. Not surprisingly, AI became a major topic of conversation (more about Sim and AI coming in the next subsection).

I have expressed some doubt about the claims made by boosters and politicians about business opportunities and innovation being good for the local economy. It seems I’m not the only one. Dan Burgar, CEO of Frontier Collective.wrote this “Opinion: Vancouver is hosting the future, but we’re not keeping any of it” in a May 19, 2026 posting on the Daily Hive, Note: A link has been removed,

Last week, the second annual Web Summit conference in Vancouver brought over 20,000 people from around the world to the city. They came for our talent, our companies, and our setting. They’ll leave with deals signed, partnerships formed, and ideas that will turn into businesses somewhere else.

That last part is the problem we keep refusing to talk about.

Vancouver is great at hosting innovation. We’re terrible at keeping it.

Slack was built here. It was scaled in San Francisco. Hootsuite, AbCellera, General Fusion, and Clio: every one of them globally significant, and every one of them has had to look outside this city, this province, and often this country for the capital, the customers, and the conditions to grow. The pattern is so consistent it’s stopped being a pattern and started being the model.

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Burger’s point is well taken (although he doesn’t mention D-Wave Systems). He goes on to suggest this,

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The Mayor of Vancouver’s office, the Government of British Columbia, and the Government of Canada all have a role to play, and none of them should wait for the others.

Vancouver should treat innovation infrastructure the same way it treats public transit infrastructure: as a non-negotiable public good that catalyzes everything around it.

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Mayor Sim took another approach at the 2026 Web Summit.

Sim and his AI minions (all 11 of them)

Sim’s missteps at the 2026 Web Summit are in keeping with his current policy of achieving an unbreakable streak (I exaggerate … a little bit) of own goals (even I’m affected by the sports fever of living in a 2026 World Cup city).

For anyone who might like to see a listing for the five months of this year, there’s the Ken SIm webpage on Global News. which as of May 22, 2026 includes these gems, “Report finds Vancouver Mayor Ken Sim misused influence, harassed councillor Sean Orr,” “Vancouver recovery advocate returning honour to city over mayor, council’s actions,” “Vancouver Mayor Ken Sim says comments about councillor Sean Orr [accusing Orr of openly selling drugs on Christmas Day 2026] came from an unverified photo,” “Vancouver Mayor Ken Sim files defamation lawsuit against 2 men,” and more.

I have never really recovered from reading Matt O’Grady’s October 4, 2023 article for Vancouver Magazine “A Year In, How’s Mayor Ken Sim Actually Doing?” It provides an unexpected view of our current mayor,

I’m sitting on a couch in the mayor’s third-floor offices, and Ken Sim is walking over to his turntable to put on another record. “How about the Police? I love this album.”

With the opening strains of  “Every Breath You Take” crackling to life, Sim is explaining his approach to conflict resolution, and how he takes inspiration from the classic management tome Getting to Yes: Negotiating Agreement Without Giving In.

“The way they approach things is, instead of having an adversarial relationship in every decision we look at, imagine you’re two judges on the same side of the table, trying to opine on a very difficult case and get to the best answer,” he says. “We’re just looking for the best answer.”

Suddenly, the office door swings open and Sim’s chief of staff, Trevor Ford, pokes his head in (for the third time in the past 10 minutes). “We have to go. Now.”

“Okay, okay,” says Sim, turning back to address me. “Do you mind if I change while we’re talking?” And so the door closes again—and, without further ado, the Mayor of Vancouver drops trou and goes in search of a pair of shorts, continuing with a story about how some of his west-side friends are vocally against the massive Jericho Lands development promising to reshape their 4th and Alma neighbourhood.

“And I’m like, ‘Let me be very clear: I 100-percent support it, this is why—and we’ll have to agree to disagree,’” he says, trading his baby-blue polo for a fitted charcoal grey T-shirt. Meanwhile, as Sim does his wardrobe change, I’m doing everything I can to keep my eyes on my keyboard—and hoping the mayor finds his missing shorts.

It’s fair to assume that previous mayors weren’t in the habit of getting naked in front of journalists. At least, I can’t quite picture Kennedy Stewart doing so, or Larry or Gordon Campbell either. 

But it also fits a pattern that’s developing with Ken Sim as a leader entirely comfortable in his own skin. He’s in a hurry to accomplish big things—no matter who’s watching and what they might say (or write). And he eagerly embraces the idea of bringing Vancouver’s “swagger” back—outlined in his inaugural State of the City address, and underlined when he shotgunned a beer [later reporting indicated a vodka cream soda was shotguneed] at July’s [2023] Khatsahlano Street Party.

…

Flying free to the wind, eh?

Moving onto Sim’s latest gaffe in what appears to be an ill advised attempt at impressing an audience of tech innovators, this happened (you can find the story in the headlines),

For anyone who’d like to hear the story, there’s an 11 mins. interview (aired May 14, 2026) with Justin McElroy, CBC’s municipal affairs reporter for BC..Here’s how the segment is described on the CBC Radio’s Early Edition with Stephen Quinn webspace

Vancouver Mayor Ken Sim is clarifying his comments about having 11 different AI agents doing work for him — but it’s just one of many stories about artificial intelligence that have come this week in Vancouver.

Sim is up for re-election on October 17, 2026. There are seven candidates currently vying to be mayor (Wikipedia entry for 2026 Vancouver municipal election). It should be interesting.

Final thoughts

AI data centres are, generally speaking, not popular. The exception being the folks making money from them or, at least in Vancouver, hoping that their businesses (e.g., Westbank) can be saved by them. There’s been a lot of concern over electricity and water use.

The University of Waterloo’s claim that AI’s climate impact is much smaller than many feared is based on some data from 2016 and earlier. This April 16, 2026 International Energy Agency (IEA) press release about a new report notes this about AI energy use,

…

According to the report – Key Questions on Energy and AI – power consumption per AI task is declining rapidly, with efficiency improving at a rate unprecedented in energy history. However, more people are using AI, and energy-intensive uses – such as AI agents – are on the rise [emphasis mine]. As a result, electricity consumption from data centres is set to double by 2030, and power use from those focused on AI is poised to triple.

…

Sim and his 11 AI agents (personal use only) not withstanding, it would be interesting to know how much AI is being deployed in city departments, including the police, and plans for AI deployment. (Just an idle thought)

While I have been critical of Simon Enoch, Andrew Longhurst, and Rachel Pettigrew’s May 18, 2026 article “Vancouver Is Getting AI Data Centres. That’s Not Good” for The Tyee, they make some useful points about noise (an issue when these centres are in urban areas) and environmental standards.

I expect unfettered enthusiasm and boosterism from the technology community at something like the Web Summit; it’s disconcerting when found in the city’s mayor. But much more disquieting was this, “Far-Right Speakers Given a Perch at Vancouver’s Web Summit,” May 18, 2026 article by Jen St. Denis for The Tyee. (I’ve added a link and an excerpt from the article at the end of my May 8, 2026 posting about the summit.) There were a lot of politicians at the 2026 summit, maybe next time they’ll check with the organizers about who’s being invited to speak.

AI data centres aren’t just a technology story, they’re also an energy story, a water story, a political story, and, in some cases, a neighbourhood story.

ETA May 22, 2026 at 1530 hours: Massive protest march against Vancouver AI data centres tomorrow (May 23, 2026)

I don’t usually write about issues that are this dynamic but Daniel Chai’s May 22, 2026 article for the Daily Hive features news of a protest. Interestingly, there were no protests when the first AI data centre was announced in January 2026. It seems the Web Summit stimulated an opposition movement, Note: Links have been removed,

A huge demonstration against the proposed cluster of AI data centres in Vancouver will take place on Saturday, May 23, and traffic may be impacted throughout downtown.

A group behind the Instagram page @no.ai.vancouver was formed shortly after news broke that Telus was moving ahead with plans to build a major sovereign artificial intelligence (AI) infrastructure network in British Columbia.

This includes new AI data centres at two Westbank properties in Vancouver that could become fully operational before the end of this decade.

“No.ai.vancouver is trying to spread awareness about the impact of AI data centres on the environment, help in halting the construction of these AI data centres, and looking out for the people who call this place home,” said Torin LaRocque, an 18-year-old student living in Vancouver who founded the group.

“I was inspired to create this movement after seeing all the devastation these centres are causing to people living nearby.”

For LaRocque, one of the top negative issues surrounding the proposed facilities is their impact on the environment.

“Telus states that the new AI Data Centres use 90 per cent less energy than the average centre,” said the Vancouver resident. “However, they also state that they will have more than 60,000 GPUs on the conservative side.

“[If] each GPU will process an AI prompt a day, that is still over 1400 litres of water being used a day. Vancouver is already under stage two water restrictions. Why should we let these data centres use the water that Vancouver’s population needs?”

The demonstration on Saturday, May 23, begins with poster-making at Victory Square at 11 a.m., with some supplies provided.

Participants in the protest against the AI Data Centres will meet at Waterfront Station at 1 p.m., with plans to march down Granville Street starting at 1:30 p.m.

The march, which LaRocque said could draw a large procession, will continue over the bridge until it reaches Granville Island.

Officers from the Vancouver Police Department (VPD) will be on site during the demonstration.

…

LaRocque, who describes himself as an initiator of the group, shared that the positive response from the community has been honestly shocking.

“I am confident that if enough people show up and demand change, either by protesting or signing the petition, we can bring this to the city with more than just one person backing it up. The more signatures and protesters we have, the more the City will be unable to ignore.”

The group has also shared a link to a petition calling for a stop to the Vancouver AI Data Centre, which has garnered over 1,400 signatures as of press time.

Daily Hive reached out to the City for comment on the protest, with a representative responding, “The City of Vancouver recognizes and upholds the right to free speech and peaceful protest.” [almost like an AI agent wrote the reply]

…

Should you be interested in going to the protest, Victory Square’s address is: 200 W Hastings St.

Web Summit 2026 in Vancouver, British Columbia (BC), Canada from May 11 – 14, 2026

The Daily Hive (May 7, 2026 article by Amir Ali) is trumpeting the appearance of Vancouver’s current (Ken Sim) and a previous (Gregor Robertson) mayors at the second Web Summit Vancouver meeting (formerly known as Collisions when held previously in Toronto) here in the city, Note: Links have been removed,

The biggest tech event of the year kicks off next week [May 11 – 14, 2026], and the current and a former Vancouver mayor will be helping to kick off the festivities.

Web Summit 2026 begins this coming Monday [May 11, 2026], and Vancouver Mayor Ken Sim and former mayor Gregor Robertson, who’s the current Canadian housing minister [and Minister responsible for Pacific Economic Development Canada], will be sharing a stage to kick off the festivities.

It’s probably the biggest event of the year that isn’t named FIFA World Cup, and it takes place between May 11 and May 14 [2026].

Last year, Web Summit came to Vancouver for the first time, and it brought over 100 of the world’s top leaders in tech to the city.

The 2025 event saw over 15,000 people attend, and this year’s event could draw over 20,000, along with over 1,500 startups, 700 investors, 350 speakers, and delegates from over 120 countries, according to Innovate BC.. [emphases mine]

Opening remarks take place on Monday, May 11, [2026] at 6 pm, and along with Sim and Robertson will be Web Summit CEO and Founder Paddy Cosgrave, and B.C.’s minister of finance, Brenda Bailey.

Other notable speakers who’ll be speaking at the event include Evan Solomon [emphasis mine], Canada’s Minister of AI and Digital Innovation. B.C. Premier David Eby [emphasis mine] will also be speaking on a panel about growing the province’s tech sector.

Beloved physician Gabor Maté [emphasis mine] is also going to be in attendance as a speaker.

Some of the biggest brands and organizations that will be represented include Sony Imageworks, Walt Disney Animation Studios, CNN Business, Forbes, the Harvard Business Review, Aston Martin, and Microsoft.

Last year’s Vancouver event marked the first time a North American city hosted Web Summit.

…

While Web Summit is a massive tech event, it won’t draw in as many people as the huge Alcoholics Anonymous Convention that took place last year.

I have a couple of questions First, how much money did we make from last year’s event? I have some data from my May 23, 2025 posting about the estimated financial benefits from the then upcoming (May 27 – 30, 2025) event,

…

Destination Vancouver estimates Web Summit Vancouver will produce substantial local economic spinoffs, with nearly $57 million in direct spending and over $93 million in overall economic impact for British Columbia in its first year [emphasis mine].

…

Surely by now, they have a rough estimate, if not final numbers. Also, were there extra costs incurred. If so, what were they? Given that our current mayor, Ken Sim, is an accountant, it’s puzzling that he only ever talks about projected benefits (e.g. Web Summit; it’s too early to tell about the upcoming FIFA World Cup matches). If you are curious about how how the Web Summit Vancouver sausage was made, there’s my May 23, 2025 posting, which provides a little information if not all of the story.

Before proceeding to the second question, here’s a May 5, 2026 Government of British Columbia (BC) news release announcing the summit and proclaiming the advantages of holding a technology summit here in BC, Note: Links have been removed,

Summary
Why attend Web Summit Vancouver 2026 in British Columbia? Web Summit Vancouver 2026 showcases B.C. as a global tech hub.

  • Web Summit Vancouver returns May 11–14, 2026, connecting global investors and innovators with British Columbia’s fast-growing tech ecosystem
  • 15,000+ attendees from 117 countries in 2025 showcased B.C.’s strength in innovation, investment and global partnerships
  • British Columbia offers global scale and market access, with 12,000+ tech companies, top talent and strong links to North American and Asia-Pacific markets

Web Summit Vancouver returns May 11–14, 2026, bringing global investors and innovators to British Columbia to connect with investment-ready companies and explore partnership and market entry opportunities in one of North America’s fastest-growing tech ecosystems.

The B.C. Pavilion at the Vancouver Convention Centre will once again serve as a central hub on the show floor, with half day programming blocks dedicated to priority sectors. This structure supports curated connections between global attendees and B.C.’s investment-ready companies and partners across clean tech, AI and quantum, life sciences, creative tech, agritech and marine tech.

As one of the world’s largest and most influential technology gatherings, Web Summit offers international companies, investors and industry leaders direct access to B.C.’s innovation ecosystem and high-growth sectors to explore partnerships, investment pathways and emerging technologies shaping the future economy.

Web Summit Vancouver 2026 Builds on Strong Global Engagement In 2025

The inaugural Web Summit Vancouver in 2025 attracted over 15,000 attendees from 117 countries, generating international visibility for B.C.’s technology sector and innovation ecosystem.

B.C. companies connected with global investors, media and partners through targeted meetings, pitch sessions and on-site programming, supporting new business relationships and export opportunities. These structured engagements helped generate tangible deal flow and accelerate international partnerships.

The event also demonstrated how global gatherings can accelerate market access by bringing decision-makers directly into the province’s ecosystem.

Investment Programming alongside Web Summit Vancouver 2026

With strong momentum from 2025, Web Summit Vancouver 2026 and a coordinated program of host-led events is expected to further expand Vancouver’s global reach and impact.

Beyond the main conference, host-led programming will connect international delegates with investment-ready companies and targeted business opportunities across British Columbia. Delegates can access structured opportunities, including investor showcases, pre-matched B2B meetings, pitch sessions and sector-specific networking events designed to support deal flow, market entry and the establishment of international companies in British Columbia.

As a central hub, the return of the B.C. Pavilion will provide a dedicated space to explore the province’s innovation ecosystem, support meetings, informal networking and direct engagement with companies and partners actively seeking investment and collaboration.

For international attendees, the event offers a direct pathway to:

  • Meet investment-ready B.C. companies through curated and pre-qualified engagements
  • Participate in pre-matched meetings with investors and buyers
  • Gain insight into emerging global technology trends
  • Connect with a collaborative and fast-growing innovation ecosystem

British Columbia Tech Ecosystem Offers Global Scale and Investment Potential

British Columbia is home to one of North America’s fastest-growing technology ecosystems, with more than 12,000 companies employing over 180,000 people across the sector. This depth of talent and industry makes B.C. a strong pipeline of investment-ready companies for global partners.

For international investors and companies, B.C. offers a combination of talent, infrastructure and global connectivity that supports long-term growth.

Key advantages include:

  • A highly skilled and diverse workforce, supported by nearly 15,000 tech-related graduates each year
  • Strong research and commercialization capacity, with globally recognized universities and innovation hubs
  • Competitive business costs and a stable operating environment
  • Strategic access to North American, Asian and European markets through integrated trade and transportation networks

Vancouver’s tech ecosystem ranks among the top in Canada and is recognized globally for its talent concentration and cost competitiveness, making it an attractive destination for scaling companies.

Global companies including Amazon, Microsoft, SAP and Salesforce have established a strong presence in the province , alongside a growing number of high-value startups and scaleups.

…

The focus is clearly business. So, my second question is ‘What is Gabor Maté doing at the ‘techie’ 2026 Web Summit?’ For anyone unfamiliar with Maté, here’s more from his Wikipedia entry, Note: Links have been removed,

Gabor Maté CM (/ˈɡɑːbɔːr ˈmɑːteɪ/ GAH-bor MAH-tay;[1] born January 1944) is a Canadian physician and author. He has worked in family practices and specializes in childhood development and trauma,[2] including long-term effects on physical and mental health, such as autoimmune diseases, cancer, attention deficit hyperactivity disorder (ADHD),[3] and addiction. [emphases mine]

Maté’s approach to addiction emphasizes the role of trauma i [emphasis mine] n the development of substance use disorders, aiming to address underlying emotional pain as part of recovery.[4] He has written five books exploring topics such as ADHD, stress, developmental psychology, and addiction. Some commentators have raised concerns about the scope and evidentiary basis of his claims.[5][6][7]

..

Interesting choice, non?

Now for some details, the pricing for the cheapest four-day ticket ‘General attendee’ is $830 CAD (including tax), the same price as last year’s as per my May 23, 2025 posting. A ‘Chairperson’ ticked will cost you $40,000 CAD (including tax). It makes the $1990 CAD (Including tax) price for the ‘Executive’ ticket almost look reasonable. As you might expect, the prices reflect the degree of access you will receive to special events and speakers

Here’s a sampling of the speakers at this year’s event and Maté is not the only unusual choice,

  • Michelle Grady, President,Sony Imageworks
  • Gary Marcus, AI Expert, Scientist & Author
  • Naomi Klein, Activist and writer
  • Matt Lyteson, CIO, IBM
  • Stephen Walt, Professor, International Affairs, Harvard Kennedy School of Government
  • Rick Glumac, Minister for AI and New Technologies of British Columbia, Government of BC
  • Apl.de.ap, Rapper, Black Eyed Peas
  • etc.

I’m particularly taken with Apl.de.ap whose profile page revealed this,

Grammy winner Apl.de.Ap is transforming the Philippines via the world’s largest reforestation project. Planting 380M+ trees, he’s blending agroforestry with carbon credits to fight climate change and empower rural communities. Music was just the start.

I love trees.

Web Summit Vancouver 2026 is here should you wish to sign up.

ETA May 22, 2026: I’ve commented on some unexpected choices for speakers; it seems it was even odder than I knew. In “Far-Right Speakers Given a Perch at Vancouver’s Web Summit,” Jen St. Denis reveals some disquieting news in her May 18, 2026 article for The Tyee, Note: Links have been removed,

…

Gil Durán, a journalist who has documented and warned about Yarvin’s [Curtis Yarvin, a commentator who has argued for U.S. democracy to be replaced with a corporate surveillance state] appeal to tech elites in the United States, told The Tyee he was invited to debate Yarvin at the conference — but declined. Durán said organizers then asked him to appear in a different format, but the participation of Yarvin “left a bad taste and I lost interest.”

“I’m in the middle of finishing a book about tech fascism, and Yarvin turned down multiple interview requests. Why would I fly to British Columbia to frolic with him in a circus?” said Durán.

“I was then told that Yarvin’s appearance wouldn’t be advertised. That sealed my decision to stay away. If you’re too ashamed to publicize your guest, why invite him?”

…

Regarding far-right speakers being invited to speak at the conference, Farrell [Katherine Farrell, vice-president of communications for the conference] told The Tyee the conference organizers believe “in having the courage to hear from everyone impacting the future of tech — those building technology, those deploying it, and those influencing how it is used. The tech world cannot and should not hide from examining every corner of the tech debate.”

Durán said extreme ideas like fascism, eugenics and racism are being “cleverly marketed through ‘debate’ and ‘just asking questions’ journalism,” and he questioned whether Yarvin was truly challenged on his authoritarian ideas at the conference.

…

This is not a good look for the Summit, for the politicians, or for the attendees.

Water, critical minerals, technology and US expansionist ambitions (Manifest Destiny)

I was taught in high school that the US was running out of its resources and that Canada still had much of its resources. That was decades ago. As well, throughout the years, usually during a vote in Québec about separating, I’ve heard rumblings about the US absorbing part or all of Canada as something they call ‘Manifest Destiny,’ which dates back to the 19th century.

Unlike the previous forays Into Manifest Destiny, this one has not been precipitated by any discussion of separation.

Manifest Destiny

It took a while for that phrase to emerge this time but when it finally did the Canadian Broadcasting Corporation (CBC) online news published a January 19, 2025 article by Ainsley Hawthorn providing some context for the term, Note: Links have been removed,

U.S. president-elect Donald Trump says he’s prepared to use economic force to turn Canada into America’s 51st state, and it’s making Canadians — two-thirds of whom believe he’s sincere — anxious. 

But the last time Canada faced the threat of American annexation, it united us more than ever before, leading to the foundation of our country as we know it today.

In the 1860s, several prominent U.S. politicians advocated for annexing the colonies of British North America. 

“I look on Rupert’s Land [modern-day Manitoba and parts of Alberta, Saskatchewan, Nunavut, Ontario, and Quebec] and Canada, and see how an ingenious people and a capable, enlightened government are occupied with bridging rivers and making railroads and telegraphs,” Secretary of State William Henry Seward told a crowd in St. Paul, Minn. while campaigning on behalf of presidential candidate Abraham Lincoln.

“I am able to say, it is very well; you are building excellent states to be hereafter admitted into the American Union.”

Seward believed in Manifest Destiny, the doctrine that the United States would inevitably expand across the entire North American continent. While he seems to have preferred to acquire territory through negotiation rather than aggression, Canadians weren’t wholly assured of America’s peaceful intentions. 

…

In the late 1850s and early 1860s, Canadian parliament had been so deadlocked it had practically come to a standstill. Within just a few years, American pressure created a sense of unity so great it led to Confederation.

The current conversation around annexation is likewise uniting Canada’s leaders to a degree we’ve rarely seen in recent years. 

Representatives across the political spectrum are sharing a common message, the same message as British North Americans in the late nineteenth century: despite our problems, Canadians value Canada.

Critical minerals and water

Prime Minister Justin Trudeau had a few comments to make about US President Donald Trump’s motivation for ‘absorbing’ Canada as the 51st state, from a February 7, 2025 CBC news online article by Peter Zimonjic, ·

Prime Minister Justin Trudeau told business leaders at the Canada-U.S. Economic Summit in Toronto that U.S. President Donald Trump’s threat to annex Canada “is a real thing” motivated by his desire to tap into the country’s critical minerals.

“Mr. Trump has it in mind that the easiest way to do it is absorbing our country and it is a real thing,” Trudeau said, before a microphone cut out at the start of the closed-door meeting. 

The prime minister made the remarks to more than 100 business leaders after delivering an opening address to the summit Friday morning [February 7, 2025], outlining the key issues facing the country when it comes to Canada’s trading relationship with the U.S.

After the opening address, media were ushered out of the room when a microphone that was left on picked up what was only meant to be heard by attendees [emphasis mine].

…

Automotive Parts Manufacturers’ Association president Flavio Volpe was in the room when Trudeau made the comments. He said the prime minister went on to say that Trump is driven because the U.S. could benefit from Canada’s critical mineral resources.

…

There was more, from a February 7, 2025 article by Nick Taylor-Vaisey for Politico., Note: A link has been removed,

…

In remarks caught on tape by The Toronto Star, Trudeau suggested the president is keenly aware of Canada’s vast mineral resources. “I suggest that not only does the Trump administration know how many critical minerals we have but that may be even why they keep talking about absorbing us and making us the 51st state,” Trudeau said.

…

All of this reminded me of US President Joe Biden’s visit to Canada and his interest in critical minerals which I mentioned briefly in my comments about the 2023 federal budget, from my April 17, 2023 posting (scroll down to the ‘Canadian economic theory (the staples theory), mining, nuclear energy, quantum science, and more’ subhead,

Critical minerals are getting a lot of attention these days. (They were featured in the 2022 budget, see my April 19, 2022 posting, scroll down to the Mining subhead.) This year, US President Joe Biden, in his first visit to Canada as President, singled out critical minerals at the end of his 28 hour state visit (from a March 24, 2023 CBC news online article by Alexander Panetta; Note: Links have been removed),

There was a pot of gold at the end of President Joe Biden’s jaunt to Canada. It’s going to Canada’s mining sector.

The U.S. military will deliver funds this spring to critical minerals projects in both the U.S. and Canada. The goal is to accelerate the development of a critical minerals industry on this continent.

The context is the United States’ intensifying rivalry with China.

The U.S. is desperate to reduce its reliance on its adversary for materials needed to power electric vehicles, electronics and many other products, and has set aside hundreds of millions of dollars under a program called the Defence Production Act.

The Pentagon already has told Canadian companies they would be eligible to apply. It has said the cash would arrive as grants, not loans.

On Friday [March 24, 2023], before Biden left Ottawa, he promised they’ll get some.

The White House and the Prime Minister’s Office announced that companies from both countries will be eligible this spring for money from a $250 million US fund.

Which Canadian companies? The leaders didn’t say. Canadian officials have provided the U.S. with a list of at least 70 projects that could warrant U.S. funding.

…

“Our nations are blessed with incredible natural resources,” Biden told Canadian parliamentarians during his speech in the House of Commons.

“Canada in particular has large quantities of critical minerals [emphasis mine] that are essential for our clean energy future, for the world’s clean energy future.

…

I don’t think there’s any question that the US knows how much, where, and how easily ‘extractable’ Canadian critical minerals might be.

Pressure builds

On the same day (Monday, February 3, 2025) the tariffs were postponed for a month,Trudeau had two telephone calls with US president Donald Trump. According to a February 9, 2025 article by Steve Chase and Stefanie Marotta for the Globe and Mail, Trump and his minions are exploring the possibility of acquiring Canada by means other than a trade war or economic domination,

…

“He [Trudeau] talked about two phone conversations he had with Mr. Trump on Monday [February 3, 2025] before the President agreed to delay to steep tariffs on Canadian goods for 30 days.n

During the calls, the Prime Minister recalled Mr. Trump referred to a four-page memo that included a list of grievances he had with Canadian trade and commercial rules, including the President’s false claim that US banks are unable to operate in Canada. …

In the second conversation with Mr. Trump on Monday, the Prime Minister told the summit, the President asked him whether he was familiar with the Treaty of 1908, a pact between the United States and Britain that defined the border between the United States and Canada. he told Mr. Trudeau, he should look it up.

Mr. Trudeau told the summit he thought the treaty had been superseded by other developments such as the repatriation the Canadian Constitution – in other words, that the border cannot be dissolved by repealing that treaty. He told the audience that international law would prevent the dissolution 1908 Treaty leading to the erasure of the border. For example, various international laws define sovereign borders, including the United Nationals Charter of which both countries are signatories and which has protection to territorial integrity.

A source familiar with the calls said Mr. Trump’s reference to the 1908 Treaty was taken as an implied threat. … [p. A3 in paper version]

I imagine Mr. Trump and/or his minions will keep trying to find one pretext or another for this attempt to absorb or annex or wage war (economically or otherwise) on Canada.

What makes Canadian (and Greenlandic) minerals and water so important?

You may have noticed the January 21, 2025 announcement by Mr. Trump about the ‘Stargate Project,’ a proposed US $500B AI infrastructure company (you can find more about the Stargate Project (Stargate LLC) in its Wikipedia entry).

Most likely not a coincidence, on February 10, 2025 President of France, Emmanuel Macron announced a 109B euros investment in French AI sector, from the February 9, 2025 Reuters preannouncement article,

France will announce private sector investments totalling some 109 billion euros ($112.5 billion [US]) in its artificial intelligence sector during the Paris AI summit which opens on Monday, President Emmanuel Macron said.

The financing includes plans by Canadian investment firm [emphasis mine] Brookfield to invest 20 billion euros in AI projects in France and financing from the United Arab Emirates which could hit 50 billion euros in the years ahead, Macron’s office said.

…

Big projects, non? It’s no surprise critical minerals will be necessary but the need for massive amounts of water may be. My October 16, 2023 posting focuses on water and AI development, specifically ChatGPT-4,

A September 9, 2023 news item (an Associated Press article by Matt O’Brien and Hannah Fingerhut) on phys.org and also published September 12, 2023 on the Iowa Public Radio website, describe an unexpected cost for building ChatGPT and other AI agents, Note: Links [in the excerpt] have been removed,

The cost of building an artificial intelligence product like ChatGPT can be hard to measure.

But one thing Microsoft-backed OpenAI needed for its technology was plenty of water [emphases mine], pulled from the watershed of the Raccoon and Des Moines rivers in central Iowa to cool a powerful supercomputer as it helped teach its AI systems how to mimic human writing.

As they race to capitalize on a craze for generative AI, leading tech developers including Microsoft, OpenAI and Google have acknowledged that growing demand for their AI tools carries hefty costs, from expensive semiconductors to an increase in water consumption.

But they’re often secretive about the specifics. Few people in Iowa knew about its status as a birthplace of OpenAI’s most advanced large language model, GPT-4, before a top Microsoft executive said in a speech it “was literally made next to cornfields west of Des Moines.”

…

In its latest environmental report, Microsoft disclosed that its global water consumption spiked 34% from 2021 to 2022 (to nearly 1.7 billion gallons , or more than 2,500 Olympic-sized swimming pools), a sharp increase compared to previous years that outside researchers tie to its AI research. [emphases mine]

…

As for how much water was diverted in Iowa for a data centre project, from my October 16, 2023 posting

…

Jason Clayworth’s September 18, 2023 article for AXIOS describes the issue from the Iowan perspective, Note: Links [from the excerpt] have been removed,

Future data center projects in West Des Moines will only be considered if Microsoft can implement technology that can “significantly reduce peak water usage,” the Associated Press reports.

Why it matters: Microsoft’s five WDM data centers — the “epicenter for advancing AI” — represent more than $5 billion in investments in the last 15 years.

Yes, but: They consumed as much as 11.5 million gallons of water a month for cooling, or about 6% of WDM’s total usage during peak summer usage during the last two years, according to information from West Des Moines Water Works.

…

The bottom line is that these technologies consume a lot of water and require critical minerals.

Greenland

Evan Dyer’s January 16, 2025 article for CBC news online describes both US military strategic interests and hunger for resources, Note 1: Article links have been removed; Note 2: I have added one link to a Wikipedia entry,

The person who first put a bug in Donald Trump’s ear about Greenland — if a 2022 biography is to be believed — was his friend Ronald Lauder, a New York billionaire and heir to the Estée Lauder cosmetics fortune.

But it would be wrong to believe that U.S. interest in Greenland originated with idle chatter at the country club, rather than real strategic considerations.

Trump’s talk of using force to annex Greenland — which would be an unprovoked act of war against a NATO ally — has been rebuked by Greenlandic, Danish and European leaders. A Fox News team that travelled to Greenland’s capital Nuuk reported back to the Trump-friendly show Fox & Friends that “most of the people we spoke with did not support Trump’s comments and found them offensive.”

…

Certainly, military considerations motivated the last U.S. attempt at buying Greenland in 1946.

…

The military value to the U.S. of acquiring Greenland is much less clear in 2025 than it was in 1946.

Russian nuclear submarines no longer need to traverse the GIUK [the GIUK gap; “{sometimes written G-I-UK} is an area in the northern Atlantic Ocean that forms a naval choke point. Its name is an acronym for Greenland, Iceland, and the United Kingdom, the gap being the two stretches of open ocean among these three landmasses.”]. They can launch their missiles from closer to home.

And in any case, the U.S. already has a military presence on Greenland, used for early warning, satellite tracking and marine surveillance. The Pentagon simply ignored Denmark’s 1957 ban on nuclear weapons on Greenlandic territory. Indeed, an American B-52 bomber carrying four hydrogen bombs crashed in Greenland in 1968.

“The U.S. already has almost unhindered access [emphasis mine], and just building on their relationship with Greenland is going to do far more good than talk of acquisition,” said Dwayne Menezes, director of the Polar Research and Policy Initiative in London.

The complication, he says, is Greenland’s own independence movement. All existing defence agreements involving the U.S. presence in Greenland are between Washington and the Kingdom of Denmark. [emphasis mine]

“They can’t control what’s happening between Denmark and Greenland,” Menezes said. “Over the long term, the only way to mitigate that risk altogether is by acquiring Greenland.”

Menezes also doesn’t believe U.S. interest in Greenland is purely military.

And Trump’s incoming national security adviser Michael Waltz [emphasis mine] appeared to confirm as much when asked by Fox News why the administration wanted Greenland.

“This is about critical minerals, this is about natural resources [emphasis mine]. This is about, as the ice caps pull back, the Chinese are now cranking out icebreakers and are pushing up there.”

…

While the United States has an abundance of natural resources, it risks coming up short in two vital areas: rare-earth minerals and freshwater.

Greenland’s apparent barrenness belies its richness in those two key 21st-century resources.

The U.S. rise to superpower was driven partly by the good fortune of having abundant reserves of oil, which fuelled its industrial growth. The country is still a net exporter of petroleum.

China, Washington’s chief strategic rival, had no such luck. It has to import more than two-thirds of its oil, and is now importing more than six times as much as it did in 2000.

But the future may not favour the U.S. as much as the past.

…

I stand corrected, where oil is concerned. From Dyer’s January 16, 2025 article, Note: Links have been removed,

…

It’s China, and not the U.S., that nature blessed with rich deposits of rare-earth elements, a collection of 17 metals such as yttrium and scandium that are increasingly necessary for high-tech applications from cellphones and flat-screen TVs to electric cars.

The rare-earth element neodymium is an essential part of many computer hard drives and defence systems including electronic displays, guidance systems, lasers, radar and sonar.

Three decades ago, the U.S. produced a third of the world’s rare-earth elements, and China about 40 per cent. By 2011, China had 97 per cent of world production, and its government was increasingly limiting and controlling exports.

The U.S. has responded by opening new mines and spurring recovery and recycling to reduce dependence on China.

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Such efforts have allowed the U.S. to claw back about 20 per cent of the world’s annual production of rare-earth elements. But that doesn’t change the fact that China has about 44 million tonnes of reserves, compared to fewer than two million in the U.S.

“There’s a huge dependency on China,” said Menezes. “It offers China the economic leverage, in the midst of a trade war in particular, to restrict supply to the West, thus crippling industries like defence, the green transition. This is where Greenland comes in.”

Greenland’s known reserves are almost equivalent to those of the entire U.S., and much more may lie beneath its icebound landscape. 

“Greenland is believed to be able to meet at least 25 per cent of global rare-earth demand well into the future,” he said.

An abundance of freshwater

The melting ice caps referenced by Trump’s nominee for national security adviser are another Greenlandic resource the world is increasingly interested in.

Seventy per cent of the world’s freshwater is locked up in the Antarctic ice cap. Of the remainder, two-thirds is in Greenland, in a massive ice cap that is turning to liquid at nearly twice the volume of melting in Antarctica.

“We know this because you can weigh the ice sheet from satellites,” said Christian Schoof, a professor of Earth, ocean and atmospheric sciences at the University of British Columbia who spent part of last year in Greenland studying ice cap melting.

“The ice sheet is heavy enough that it affects the orbit of satellites going over it. And you can record the change in that acceleration of satellites due to the ice sheet over time, and directly weigh the ice sheet.”

…

“There is a growing demand for freshwater on the world market, and the use of the vast water potential in Greenland may contribute to meeting this demand,” the Greenland government announces on its website.

The Geological Survey of Denmark and Greenland found 10 locations that were suitable for the commercial exploitation of Greenland’s ice and water, and has already issued a number of licenses.

…

Schoof told CBC News that past projects that attempted to tow Greenlandic ice to irrigate farms in the Middle East “haven’t really taken off … but humans are resourceful and inventive, and we face some really significant issues in the future.”

For the U.S., those issues include the 22-year-long “megadrought” which has left the western U.S. [emphases mine] drier than at any time in the past 1,200 years, and which is already threatening the future of some American cities.

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As important as they are, there’s more than critical minerals and water, according to Dyer’s January 16, 2025 article

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Even the “rock flour” that lies under the ice cap could have great commercial and strategic importance.

Ground into nanoparticles by the crushing weight of the ice, research has revealed it to have almost miraculous properties, says Menezes.

“Scientists have found that Greenlandic glacial flour has a particular nutrient composition that enables it to be regenerative of soil conditions elsewhere,” he told CBC News. “It improves agricultural yields. It has direct implications for food security.”

Spreading Greenland rock flour on corn fields in Ghana produced a 30 to 50 per cent increase in crop yields. Similar yield gains occurred when it was spread on Danish fields that produce the barley for Carlsberg beer.

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Canada

It’s getting a little tiring keeping up with Mr. Trump’s tariff tear (using ‘tear’ as a verbal noun; from the Cambridge dictionary, verb: TEAR definition: 1. to pull or be pulled apart, or to pull pieces off: 2. to move very quickly …).

The bottom line is that Mr. Trump wants something and certainly Canadian critical minerals and water constitute either his entire interest or, at least, his main interest for now, with more to be determined later.

Niall McGee’s February 9, 2025 article for the Globe and Mail provides an overview of the US’s dependence on Canada’s critical minerals,

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The US relies on Canada for a huge swath of its critical mineral imports, including 40 per cent of its primary nickel for its defence industry, 30 per cent of its uranium, which is used in its nuclear-power fleet, and 79 per cent of its potash for growing crops.

The US produces only small amounts of all three, while Canada is the world’s biggest potash producer, the second biggest in uranium, and number six in nickel.

If the US wants to buy fewer critical minerals from Canada, in many cases it would be forced to source them from hostile countries such as Russia and China.

…

Vancouver-based Teck Resources Ltd. is one of the few North American suppliers of germanium. The critical mineral is used in fibre-optic networks, infrared vision systems, solar panels. The US relies on Canada for 23 per cent of its imports of germanium.

China in December [2024] banned exports of the critical mineral to the US citing national security concerns. The ban raised fears of possible shortages for the US.

“It’s obvious we have a lot of what Trump wants to support America’s ambitions, from both an economic and a geopolitical standpoint,” says Martin Turenne, CEO of Vancouver-based FPX Nickel Corp., which is developing a massive nickel project in British Columbia. [p. B5 paper version]

…

Akshay Kulkarni’s January 15, 2025 article for CBC news online provides more details about British Columbia and its critical minerals, Note: Links have been removed,

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The premier had suggested Tuesday [January 14, 2025] that retaliatory tariffs and export bans could be part of the response, and cited a smelter operation located in Trail, B.C. [emphasis mine; keep reading], which exports minerals that Eby [Premier of British Columbia, David Eby] said are critical for the U.S.

…

The U.S. and Canada both maintain lists of critical minerals — ranging from aluminum and tin to more obscure elements like ytterbium and hafnium — that both countries say are important for defence, energy production and other key areas.

Michael Goehring, the president of the Mining Association of B.C., said B.C. has access to or produces 16 of the 50 minerals considered critical by the U.S.

Up-close picture of red and blue atoms.
Individual atoms of silicon and germanium are seen following an Atomic Probe Tomography (APT) measurement at Polytechnique Montreal. Both minerals are manufactured in B.C. (Christinne Muschi/The Canadian Press)

“We have 17 critical mineral projects on the horizon right now, along with a number of precious metal projects,” he told CBC News on Tuesday [January 14, 2025].

“The 17 critical mineral projects alone represent some $32 billion in potential investment for British Columbia,” he added.

John Steen, director of the Bradshaw Research Institute for Minerals and Mining at the University of B.C., pointed to germanium — which is manufactured at Teck’s facility in Trail [emphasis mine] — as one of the materials most important to U.S industry.

…

There are a number of mines and manufacturing facilities across B.C. and Canada for critical minerals.

The B.C. government says the province is Canada’s largest producer of copper, and only producer of molybdenum, which are both considered critical minerals.

…

There’s also graphite, not in BC but in Québec. This April 8, 2023 article by Christian Paas-Lang for CBC news online focuses largely on issues of how to access and exploit graphite and also, importantly, indigenous concerns, but this excerpt focuses on graphite as a critical mineral,

A mining project might not be what comes to mind when you think of the transition to a lower emissions economy. But embedded in electric vehicles, solar panels and hydrogen fuel storage are metals and minerals that come from mines like the one in Lac-des-Îles, Que.

The graphite mine, owned by the company Northern Graphite, is just one of many projects aimed at extracting what are now officially dubbed “critical minerals” — substances of significant strategic and economic importance to the future of national economies.

Lac-des-Îles is the only significant graphite mining project in North America, accounting for Canada’s contribution to an industry dominated by China.

…

There was another proposed graphite mine in Québec, which encountered significant push back from the local Indigenous community as noted in my November 26, 2024 posting, “Local resistance to Lomiko Metals’ Outaouais graphite mine.” The posting also provides a very brief update of graphite mining in Canada.

It seems to me that water does not get the attention that it should and that’s why I lead with water in my headline. Eric Reguly’s February 9, 2025 article in the Globe and Mail highlights some of the water issues facing the US, not just Iowa,

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Water may be the real reason, or one of the top reasons, propelling his [Mr. Trump’s] desire to turn Canada into Minnesota North. Canadians represent 0.5 per cent of the globe’s population yet sit on 20% or more of its fresh water. Vast tracts of the United States routinely suffer from water shortages, which are drying up rivers – the once mighty Colorado River no longer reaches the Pacific Ocean – shrinking aquifers beneath farmland and preventing water-intensive industries from building factories. Warming average temperatures will intensify the shortages. [p. B2 in paper version]

…

Reguly is more interested in the impact water shortages have on industry. He also offers a brief history of US interest in acquiring Canadian water resources dating back to the first North America Free Trade Agreement (NAFTA) that came into effect on January 1, 1994.

A March 6, 2024 article by Elia Nilsen for CNN television news online details Colorado river geography and gives you a sense of just how serious the situation is, Note: Links have been removed,

Seven Western states are starting to plot a future for how much water they’ll draw from the dwindling Colorado River in a warmer, drier world.

The river is the lifeblood for the West – providing drinking water for tens of millions, irrigating crops, and powering homes and industry with hydroelectric dams.

…

This has bought states more time to figure out how to divvy up the river after 2026, when the current operating guidelines expire.

To that end, the four upper basin river states of Colorado, Utah, New Mexico and Wyoming submitted their proposal for how future cuts should be divvied up among the seven states to the federal government on Tuesday [March 5, 2024], and the three lower basin states of California, Arizona and Nevada submitted their plan on Wednesday [March 6, 2024].

One thing is clear from the competing plans: The two groups of states do not agree so far on who should bear the brunt of future cuts if water levels drop in the Colorado River basin.

…

As of a December 12, 2024 article by Shannon Mullane for watereducationcolorado.org, the states are still wrangling and they are not the only interested parties, Note: A link has been removed,

… officials from seven states are debating the terms of a new agreement for how to store, release and deliver Colorado River water for years to come, and they have until 2026 to finalize a plan. This month, the tone of the state negotiations soured as some state negotiators threw barbs and others called for an end to the political rhetoric and saber-rattling.

…

The state negotiators are not the only players at the table: Tribal leaders, federal officials, environmental organizations, agricultural groups, cities, industrial interests and others are weighing in on the process.

…

Water use from the Colorado river has international implications as this February 5, 2025 essay (Water is the other US-Mexico border crisis, and the supply crunch is getting worse) by Gabriel Eckstein, professor of law at Texas A&M University and Rosario Sanchez, senior research scientist at Texas Water Resources Institute and at Texas A&M University for The Conversation makes clear, Note: Links have been removed,

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The Colorado River provides water to more than 44 million people, including seven U.S. and two Mexican states, 29 Indian tribes and 5.5 million acres of farmland. Only about 10% of its total flow reaches Mexico. The river once emptied into the Gulf of California, but now so much water is withdrawn along its course that since the 1960s it typically peters out in the desert.

…

At least 28 aquifers – underground rock formations that contain water – also traverse the border. With a few exceptions, very little information on these shared resources exists. One thing that is known is that many of them are severely overtapped and contaminated.

Nonetheless, reliance on aquifers is growing as surface water supplies dwindle. Some 80% of groundwater used in the border region goes to agriculture. The rest is used by farmers and industries, such as automotive and appliance manufacturers.

Over 10 million people in 30 cities and communities throughout the border region rely on groundwater for domestic use. Many communities, including Ciudad Juarez; the sister cities of Nogales in both Arizona and Sonora; and the sister cities of Columbus in New Mexico and Puerto Palomas in Chihuahua, get all or most of their fresh water from these aquifers.

…

A booming region

About 30 million people live within 100 miles (160 kilometers) of the border on both sides. Over the next 30 years, that figure is expected to double.

Municipal and industrial water use throughout the region is also expected to increase. In Texas’ lower Rio Grande Valley, municipal use alone could more than double by 2040.

At the same time, as climate change continues to worsen, scientists project that snowmelt will decrease and evaporation rates will increase. The Colorado River’s baseflow – the portion of its volume that comes from groundwater, rather than from rain and snow – may decline by nearly 30% in the next 30 years.

Precipitation patterns across the region are projected to be uncertain and erratic for the foreseeable future. This trend will fuel more extreme weather events, such as droughts and floods, which could cause widespread harm to crops, industrial activity, human health and the environment.

Further stress comes from growth and development. Both the Colorado River and Rio Grande are tainted by pollutants from agricultural, municipal and industrial sources. Cities on both sides of the border, especially on the Mexican side, have a long history of dumping untreated sewage into the Rio Grande. Of the 55 water treatment plants located along the border, 80% reported ongoing maintenance, capacity and operating problems as of 2019.

Drought across the border region is already stoking domestic and bilateral tensions. Competing water users are struggling to meet their needs, and the U.S. and Mexico are straining to comply with treaty obligations for sharing water [emphasis mine].

…

Getting back to Canada and water, Reguly’s February 9, 2025 article notes Mr. Trump’s attitude towards our water,

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Mr. Trump’s transaction-oriented brain know that water availability translates into job availability. If Canada were forced to export water by bulk to the United States, Canada would in effect be exporting jobs and America absorbing them. In the fall [2024] when he was campaigning, he called British Columbia “essentially a very large faucet” [emphasis mine] that could be used to overcome California’s permanent water deficit.

…

In Canada’s favour, Canadians have been united in their opposition to bulk water exports. That sentiment is codified in the Transboundary Waters Protection Act, which bans large scale removal from waterways shared with the United States. … [p. B2 in paper version]

…

It’s reassuring to read that we have some rules regarding water removal but British Columbia also has a water treaty with the US, the Columbia River Treaty, and an update to it lingers in limbo as Kirk Lapointe notes in his February 6, 2025 article for vancouverisawesome.com. Lapointe mentions shortcomings on both sides of the negotiating table for the delay in ratifying the update while expressing concern over Mr. Trump’s possible machinations should this matter cross his radar.

What about Ukraine’s critical mineral?

A February 13, 2025 article by Geoff Nixon for CBC news online provides some of the latest news on the situation between the US and the Ukraine, Note: Links have been removed,

Ukraine has clearly grabbed the attention of U.S. President Donald Trump with its apparent willingness to share access to rare-earth resources with Washington, in exchange for its continued support and security guarantees.

Trump wants what he calls “equalization” for support the U.S. has provided to Ukraine in the wake of Russia’s full-scale invasion. And he wants this payment in the form of Ukraine’s rare earth minerals, metals “and other things,” as the U.S. leader put it last week.

U.S. Treasury Secretary Scott Bessent has travelled to Ukraine to discuss the proposition, which was first raised with Trump last fall [2024], telling reporters Wednesday [February 12, 2025] that he hoped a deal could be reached within days.

Bessent says such a deal could provide a “security shield” in post-war Ukraine. Ukrainian President Volodymyr Zelenskyy, meanwhile, said in his daily address that it would both strengthen Ukraine’s security and “give new momentum to our economic relations.”

But just how much trust can Kyiv put in a Trump-led White House to provide support to Ukraine, now and in the future? Ukraine may not be in a position to back away from the offer, with Trump’s interest piqued and U.S. support remaining critical for Kyiv after nearly three years of all-out war with Russia.

“I think the problem for Ukraine is that it doesn’t really have much choice,” said Oxana Shevel, an associate professor of political science at Boston’s Tufts University.

…

Then there’s the issue of the Ukrainian minerals, which have to remain in Kyiv’s hands in order for the U.S. to access them — a point Zelenskyy and other Ukraine officials have underlined.

There are more than a dozen elements considered to be rare earths, and Ukraine’s Institute of Geology says those that can be found in Ukraine include lanthanum, cerium, neodymium, erbium and yttrium. EU-funded research also indicates that Ukraine has scandium reserves. But the details of the data are classified.

Rare earths are used in manufacturing magnets that turn power into motion for electric vehicles, in cellphones and other electronics, as well as for scientific and industrial applications.

…

Trump has said he wants the equivalent of $500 billion US in rare earth minerals.

Yuriy Gorodnichenko, a professor of economics at the University of California, Berkeley, says any effort to develop and extract these resources won’t happen overnight and it’s unclear how plentiful they are.

“The fact is, nobody knows how much you have for sure there and what is the value of that,” he said in an interview.

“It will take years to do geological studies,” he said. “Years to build extraction facilities.” 

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Just how desperate is the US?

Yes, the United States has oil but it doesn’t have much in the way of materials it needs for the new technologies and it’s running out of something very basic: water.

I don’t know how desperate the US is but Mr. Trump’s flailings suggest that the answer is very, very desperate.

*ETA February 18, 2025: For anyone interested in more information about water, Canada, and the US, Joel Dryden’s February 18, 2025 article, “Trump’s musings on ‘very large faucet’ in Canada part of looming water crisis, say researchers” for CBC news online, which offers more information about the situation.