Manitoba’s government engaged in discussions last autumn with U.S. energy consultants regarding the potential establishment of a hyperscale AI data center near Winnipeg and utilizing private investments to construct an $18 billion hydroelectric plant on the Nelson River, as revealed by documents obtained by CBC News. Premier Wab Kinew mentioned that while the concept of a large-scale data center is no longer being considered, he is exploring the revival of the Conawapa dam project, which was put on hold in 2014 due to cost escalation.
In the obtained emails, meeting notes, and a proposal document, it was disclosed that senior officials from Manitoba’s NDP administration met with representatives from Rothschild & Co., a global financial services and advisory firm, in October and November 2025. The discussions had a dual focus: one on establishing an AI data center that would draw 250 to 300 megawatts from Manitoba Hydro’s grid, and the other on the potential hydroelectric project.
The province was keen on attracting hyperscale operators to leverage the region’s clean hydro power, quick permitting processes, and lower cooling expenses. However, Premier Kinew later shifted his stance on AI data centers, citing concerns about their energy consumption and long-term economic viability following a thorough assessment.
Regarding the hydro project, the government contemplated partnering with private entities to fund the proposed Conawapa dam, which had been shelved in the past due to financial constraints. The documents outlined the need for a funding model that could engage third-party capital without negatively impacting the provincial finances. Suggestions included collaborations with Canadian pension funds and offering equity in the venture to private partners.
Kinew, who had previously been hesitant about large dam projects, indicated a change in perspective as Manitoba faces future energy demands. He emphasized the importance of exploring various financing avenues and project partnerships to ensure the best outcomes for the province’s economy.
The premier’s evolving stance on these projects has sparked debates within the political landscape, with critics questioning the potential privatization implications and financial risks associated with resurrecting the Conawapa dam initiative. Despite the uncertainties, Manitoba continues to evaluate options for securing energy resources for its future needs.