Evidence of meeting #21 for Science and Research in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was nuclear.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

D'Agostino  Professor, Osgoode Hall Law School, York University, As an Individual
Gupta  Professor, Department of Computer Science, University of Toronto, As an Individual
Murphy  Vice-President, Research and Innovation, University of British Columbia
Christidis  President and Chief Executive Officer, Canadian Nuclear Association
Bradley  President and Chief Executive Officer, Electricity Canada
Donovan  Vice-President, Corporate Business Development and Strategy, Ontario Power Generation Inc.

4:25 p.m.

Conservative

Jagsharan Singh Mahal Conservative Edmonton Southeast, AB

Thank you for the answer.

I'm raising that question because, as you heard from my colleague, the Liberal government just gave over $240 billion to CoreWeave, which then hired U.S.-based companies to do their own analysis in the AI sphere. Therefore, if we don't have that kind of legislation, does our sovereignty come into question?

4:25 p.m.

Professor, Osgoode Hall Law School, York University, As an Individual

Pina D'Agostino

We have a robust legal-based mechanism right now in Canada, absent the CLOUD Act, to be able to respond in kind.

In Canada, the rule of law is alive and well, and we have mechanisms in the law to protect us.

Now we're talking about potentially new AI legislation, and in that, there can be something that governs such a scenario. We're not there yet, but we have the ability to act now and to ensure that we do protect Canadian data.

4:25 p.m.

Conservative

Jagsharan Singh Mahal Conservative Edmonton Southeast, AB

Do you agree with me that we need to act on it right now?

The Chair Liberal Salma Zahid

I'm sorry for interrupting, MP Mahal. Your time is up.

4:25 p.m.

Conservative

Jagsharan Singh Mahal Conservative Edmonton Southeast, AB

Thank you.

The Chair Liberal Salma Zahid

With that, we will proceed to MP Noormohamed for three minutes.

Please go ahead.

Taleeb Noormohamed Liberal Vancouver Granville, BC

Thank you, Madam Chair.

Thank you to you all for being here again.

I will start with Dr. Murphy.

One assumption is that there is going to be substantial long-term growth that's going to come from AI adoption. Could you talk a little bit about how AI can change Canada's growth model, especially if we look outside frontier tech sectors?

4:25 p.m.

Vice-President, Research and Innovation, University of British Columbia

Gail Murphy

If you think about, let's say, the automobile industry in the past, Canada did very well having parts that it made available to the global supply chain. If you think about how software is built, software also exists in different layers. If you take something like health, in order to be able to create new health applications with AI, you can either work on real data all of the time or you can create synthetic data on which to work, so there are opportunities to identify places in the new supply chain for different industries—let's use health as an example—and be able to own something like the synthetic data production that you would then allow companies to grow in Canada that provide that. Just like we have been an important part of automobile supply chains, you can imagine being an important part of AI applied to different sectors in the future.

Taleeb Noormohamed Liberal Vancouver Granville, BC

If you were then to extrapolate the opportunity that comes from the public sector as a growth engine, how would you see the public sector playing a role in terms of potentially accelerating the adoption and giving folks tangible ways in which to do exactly that, creating AI playbooks, for example, sector by sector?

I'll leave this for you, Dr. Murphy, and then Dr. Gupta can jump in as well.

4:25 p.m.

Vice-President, Research and Innovation, University of British Columbia

Gail Murphy

That's a challenging question to ask and answer in a limited time, but if you imagine the public sector being able to say let's make Canada the best in AI for robotics or AI for science, as Dr. Gupta was describing earlier, there would be abilities to fund missions, for instance, in particular kinds of humans-meet-robotic interactions and build up the expertise in the country of how we can take that and then apply it to different kinds of manufacturing sectors. These are opportunities to fund projects that are very directed and allow Canada to build up an expertise that the rest of the world sees as best in class and bring other countries into buying those goods and capabilities from us.

4:25 p.m.

Professor, Department of Computer Science, University of Toronto, As an Individual

Arvind Gupta

I'll just build on what Professor Murphy said.

There are areas where Canada is really considered a world leader. I'll just use finance as an example. We are looked at as a model for safety in finance. We're looked at as a model for building a robust government-funded health care system. We are a world leader in robotics. There are various places where we really are some of the best. I mentioned material science earlier. Definitely there are pieces of chemistry where we are really at or very close to the top.

The question then becomes how we bring AI to the fore in these areas, because first mover advantage is huge.

The Chair Liberal Salma Zahid

I'm sorry for interrupting.

The time is up for MP Noormohamed, so could you quickly wind up?

4:30 p.m.

Professor, Department of Computer Science, University of Toronto, As an Individual

Arvind Gupta

Sure.

First mover advantage is very important. We have to find a coalition of the willing. We have to find industries that want to work with our universities to figure out how to rapidly adopt AI so we can be first to market.

The Chair Liberal Salma Zahid

Thank you.

With this, this panel comes to an end.

With a very heavy heart, I would like to let everyone know that the Honourable Kirsty Duncan has passed away. She was the first chair of this committee. This committee came into existence after her private member's motion. She was a great member of Parliament for Etobicoke North, a minister and an amazing person. She was a mentor for me. When I got elected, she was there to provide support to make sure that, as new MPs, we could stand on our feet. She lost her life to cancer. I'm a cancer survivor, too. She was one of the first two or three colleagues who called me when I was diagnosed. All the support she provided me will never be forgotten.

I think in her honour, we should have a moment of silence.

[A moment of silence observed]

Thank you to all of you. She will be really missed.

With that, this panel comes to an end.

I really want to thank our witnesses for appearing before the committee today.

We will suspend the meeting so that the new witnesses can take their place. The meeting is suspended for a few minutes.

The Chair Liberal Salma Zahid

I call this meeting to order.

Welcome back.

I would like to make a few comments for the benefit of the witnesses and members. Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mic. Please mute yourself when you're not speaking.

For those on Zoom, at the bottom of your screen you can select the appropriate channel for interpretation: floor, English or French.

All comments should be addressed through the chair.

With that, I would like to welcome our three witnesses for this panel.

From the Canadian Nuclear Association, we are joined by George Christidis, president and chief executive officer; from Electricity Canada, we have Francis Bradley, president and chief executive officer; and joining us by Zoom from Ontario Power Generation, we have David Donovan, vice-president, corporate business development and strategy.

All of the witnesses will have five minutes for their opening remarks. After that, we will proceed to a round of questioning.

We will start with Dr. Christidis.

George Christidis President and Chief Executive Officer, Canadian Nuclear Association

Thank you very much, Madam Chair.

For the record, I'm not a doctor though. I would have liked to be a doctor, but I didn't have that opportunity.

The Chair Liberal Salma Zahid

I'm sorry for that.

4:40 p.m.

President and Chief Executive Officer, Canadian Nuclear Association

George Christidis

Thank you very much for the opportunity. I'm very happy to be here today to talk about a very important topic.

Madam Chair and members of the standing committee, it's a privilege to appear with you again to discuss this important issue on behalf of the Canadian Nuclear Association.

I appear before you at a moment of changing dynamics. Since the last time I was here, geopolitical relationships have intensified, and discussions around key sectors such as artificial intelligence and data centres have taken on another feature.

A key message today is this: What do you need to enable the artificial intelligence sector and other sectors to proceed with electricity and energy that's non-emitting, secure and reliable? Here we will talk with colleagues who represent the electricity industry, but I represent the nuclear industry. I'm here to tell you it's a very important part of what we do.

For over 60 years, the Canadian Nuclear Association has been the voice of Canada's nuclear industry, and today we represent 120 members, from coast to coast, from world-leading utilities and multinational mining companies to small suppliers, innovative start-ups and the like. We really are an innovation-intensive and technology-intensive industry.

It is critically important that the nuclear sector be involved in any discussion about the future of technological growth in artificial intelligence and data centre strategy because our sector is foundational to the strategic national industry and is a national asset. Nuclear contributes not only to energy production, but to Canada's economic competitiveness, long-term energy security and environmental sustainability.

This strength is rooted in our world-class domestic capabilities, from Canada's vast uranium resources, which are among the most trusted, robust and responsibly produced in the world, to a robust end-to-end nuclear supply chain, domestic reactor technologies, cutting-edge R and D expertise and vital contributions to areas such as nuclear medicine.

We are actively demonstrating this capacity today through the successful refurbishments at Bruce and OPG's Darlington—which my colleague, Mr. Donovan, will speak to, I'm sure—as well as the planned next chapter of Pickering and the construction under way of small modular reactors at Darlington, which is really leading in the G7. At the same time, provinces such as Saskatchewan, New Brunswick and others are looking at how new nuclear technologies or developments could meet common objectives. This includes large reactors, but there are small reactor discussions as well.

Canada is demonstrating global leadership at a time of rapid change. A renewed interest in nuclear energy is being observed across the globe, driven by energy security imperatives, the need to create jobs and the need to enhance investments and innovation in an era of geopolitical uncertainty, which need the acceleration of electrification across key sectors and the development and deployment of key infrastructure.

Today, a powerful new driver is emerging. That is, again, the phenomenal growth of artificial intelligence and data centres that require a lot of electricity and power. Non-emitting electricity and power are always, of course, the preferred option.

The rapid expansion of AI will add to what we already forecast to be an unprecedented pressure on our electricity systems. Modern AI models and the data centres they rely on can require up to five times the energy required from traditional facilities, demanding constant, 24-7 power with zero downtime.

This is where nuclear power really shines. Nuclear energy provides the predictable, carbon-free baseload power that advanced digital infrastructure requires. This positions Canada, along with its nuclear industry, as an attractive destination for hyperscale data centres and advanced computing investments.

The race to host this infrastructure is fundamentally an economic development race, and clean, reliable, affordable power will be decisive. This is why supporting the deployment of new nuclear power across Canada is so important. Timely regulatory processes, supportive federal-provincial co-operation and collaboration, and sustained investment in nuclear innovation are all essential to ensuring that Canada can meet this rising demand while strengthening our energy security and economic resilience.

Let me be clear: The momentum behind Canada's nuclear expansion is not dependent on the AI boom alone. Our industry must and will continue to grow regardless, driven by electrification, the need to replace aging infrastructure, and rising demand for more clean power. The AI imperative simply reinforces the urgency and adds on to this demand.

Finally, we are also exploring not only what nuclear can do for artificial intelligence, but what artificial intelligence can do for nuclear. The sector is investigating how AI can enhance efficiencies across life cycles, from predictive maintenance and digital twins to improving operational planning and regulatory processes, always with safety and regulatory integrity as paramount.

Let me assure the committee that this work remains at an early stage and that our industry and is fully committed to Canada’s rigorous safety culture and regulatory framework.

Thank you, again, Madam Chair. I look forward to the conversation.

The Chair Liberal Salma Zahid

We will now proceed to Mr. Bradley for five minutes.

Please go ahead.

Francis Bradley President and Chief Executive Officer, Electricity Canada

Thank you very much.

My name is Francis Bradley, and I am the CEO of Electricity Canada.

Electricity Canada is the association that represents the companies that produce, transport and distribute electricity across every province and territory in Canada.

I would like to thank you for inviting Electricity Canada for a second time to speak to the science and research committee on the study of artificial intelligence.

I'll take this opportunity to explain further why we need to support the electricity sector if we're to be successful at deploying AI.

Electricity, simply, is essential to artificial intelligence. To put it bluntly, using AI means computing and computing uses electricity. We cannot have one without the other. For example, a query on a tool such as ChatGPT can use 10 times more electricity than a traditional web search. To put it in context, global electricity demand from data centres is projected to double by the end of this year, reaching 1,000 terawatt hours. That is enough power to power Japan.

In Canada, electricity demand is projected to double by 2050, driven by economic growth, electrification and the growth of data centres. This will require our sector to build more generation, transmission and distribution infrastructure in the next 25 years than we have in the last century.

Tomorrow we are launching our 2026 state of the industry report, which shows a path for enabling economic growth with data centres. The report will emphasize how the federal government has an opportunity to support the electricity industry in building a new grid that helps secure Canada's place as an energy superpower. What's needed is more investment, fewer delays and, of course, more ambition.

To achieve this, we have four key recommendations.

First, we cannot scale up AI and data centres without growing our grids. Canada must eliminate barriers to building critical electricity infrastructure. For example, we welcome the government's efforts to streamline approvals, such as the creation of the Major Projects Office. Additionally, the memorandum of understanding between the Government of Canada and the Government of Alberta, which will begin a path to the suspension of the implementation and management of clean electricity regulations in the province, shows a path for better intergovernmental coordination. Provincial electricity system operators are best positioned to ensure a reliable and affordable grid.

Second, the government needs to facilitate investments in expanding electricity infrastructure. This includes addressing critical funding gaps and barriers to investment, such as the EIFEL rules.

Third, the government must include the electricity sector in AI conversations and policy design from the start. Currently, no representative from the electricity sector is on the federal AI task force. We cannot have a successful AI strategy without the electricity sector.

Lastly, as we build out our infrastructure, we need to ensure that critical infrastructure is protected. The government should ensure that we are prepared to protect critical infrastructure from the new cyber-threats posed by AI. This was evident in reports of cyber-attacks using independent AI agents such as Claude code to hack into a variety of organizations at a low cost and in a fast manner. Every new technology brings new challenges and we need to be prepared for them.

To conclude, significant growth in electricity demand will come as AI use continues to increase. Canada must be ready to meet the growth and build for the future.

Thank you for the opportunity to join you today.

The Chair Liberal Salma Zahid

We will now proceed to Mr. Donovan. He is joining us through Zoom.

Please go ahead. You will have five minutes for your opening remarks.

David Donovan Vice-President, Corporate Business Development and Strategy, Ontario Power Generation Inc.

Thank you, Madam Chair.

I apologize for not being there in person today. The travel gods were not with the people of Toronto this morning.

At Ontario Power Generation, or OPG, we see significant potential for AI to drive growth and innovation across Canada. What I hope to contribute today, though, is the perspective of an actual electricity generator, highlighting what's required from our energy sector to support this ambition.

Similar to some of the comments mentioned by the other panellists, no AI strategy can succeed without clean and dependable around-the-clock power. We see this lesson playing out globally today in many jurisdictions in the United States, for example. The rapid rise of AI and data centres has led to a huge surge in natural gas generation, locking in higher emissions across the United States.

Now, tech giants are looking for cleaner solutions and are turning to things like nuclear power. We've seen Google and NextEra trying to restart the Duane Arnold nuclear plant. Meta and Constellation are extending the life of the Clinton Clean Energy Center. Microsoft and Constellation have an agreement to reopen Three Mile Island unit 1. These are decisions that reflect a growing recognition that clean baseload or 24-7 power is a foundation of AI.

Ontario already has what others are scrambling to build—a grid that's over 80% non-emitting, primarily powered by nuclear and hydro—positioning us and Canada to lead in the global AI economy. Seizing this opportunity requires significant proactive planning and decisive action.

As one of North America's largest electricity generators and the operator of a major nuclear fleet, OPG is preparing to support more energy-intensive sectors, including AI. This challenge is pretty significant. As an example, Ontario's peak electricity demand last year was 24,000 megawatts, and Ontario's Independent Electricity System Operator projects a 65% increase in electricity need by 2050.

A major driver of this growth is the rapid expansion of data centres. Unlike traditional industry, data centre loads arrive in massive increments. While a mine or auto plant in Ontario might peak at 400 megawatts, individual data centres proposed in the United States are coming in at up to 1,000 megawatts each, nearly two and a half times larger and much faster.

In Ontario, the IESO projects that data centres alone will require about 1,600 megawatts by 2040, nearly double the output of two of our Darlington units, or enough to power 1.6 million homes. Globally, the International Energy Agency estimates that 10% of electricity demand growth over the next five years will come from AI data centres. While there's uncertainty around exactly where and when this demand will materialize, we know that baseload nuclear and hydro are well suited to meet this demand.

With the support and foresight of the Ontario government, at OPG we're already taking action. At Darlington nuclear, we're building Canada's first small modular reactor, adding 300 megawatts by 2030, leading the G7, with three other units to follow that one. We're refurbishing Pickering nuclear, returning 2,200 megawatts to the grid in the mid-2030s.

Early planning is already under way for a large nuclear at Wesleyville, and we're exploring two new generation opportunities at former coal sites at Lambton and Nanticoke, in southwestern Ontario. In northern Ontario, we're partners with the Moose Cree and TTN in assessing new hydro opportunities in the Moose River Basin, which could add another 430 megawatts.

With long lead times for nuclear and hydro projects—often a decade or more—it's essential to advance planning today, as well as engagement and regulatory processes now, so that these projects are ready when and where the demand materializes.

Early federal support so far has been instrumental. Investment tax credits, low-cost financing from the Canada Infrastructure Bank and support for indigenous participation have enabled real progress so far. As we continue to advance large, long-lead projects, ongoing partnerships with the federal government will be essential to getting these projects completed.

By learning from other jurisdictions and building new partnerships, we can ensure data centres become an asset, both to Canada and to Ontario, providing the load certainty that helps de-risk major energy investments and protect ratepayers.

As Canada advances its digital and AI ambitions, we look forward to continued collaboration with the federal government and neighbouring provinces, especially as we seek guidance on the types of data centres and the amount of compute power that will be needed to support these key sectors. With a strong track record in clean power, nuclear innovation and major project delivery, OPG is ready and willing to help power the next generation of AI and, in turn, Canada’s future economic growth.

Thank you.

The Chair Liberal Salma Zahid

Thank you.

With that, we will now start our first round of questioning of six minutes each. We will begin with MP Baldinelli.

Please go ahead.

4:55 p.m.

Conservative

Tony Baldinelli Conservative Niagara Falls—Niagara-on-the-Lake, ON

Thank you, Madam Chair, and thank you to the witnesses for being with us this afternoon.

Just going to the comments that were made, I jotted this down: “no AI strategy can succeed without clean and [reliable]...power.”

Then in your testimony, Mr. Bradley, you indicated that no one from the electricity sector.... Specifically, one of your recommendations was that they must include the electricity sector in moving forward with their discussions.

Have you had discussions with the government with regard to any of its AI strategies moving forward?

4:55 p.m.

President and Chief Executive Officer, Electricity Canada

Francis Bradley

We have been talking, certainly, to a variety of people within the government and within the office of the relevant minister. We have been making the recommendation now for a couple of months that we see some kind of participation. As you noted, and as I said in my introductory comments, this is a significant gap. If there is a conversation and a federal task force in this space, the only way this is going to be successful is if we ensure we move forward with input from the people who are going to be powering this sector in the future. That is currently a gap.