Manitoba’s government engaged in discussions last autumn with U.S. energy consultants regarding the potential establishment of a large-scale AI data center close to Winnipeg and the utilization of private funds to construct an $18 billion hydroelectric power station on the Nelson River, as per documents acquired by CBC News. Premier Wab Kinew has indicated that while the idea of a significant data center is no longer being pursued, there is interest in reviving the Conawapa dam project on the Nelson River, which was put on hold in 2014 due to cost escalations.
Emails, meeting notes, and a proposal document obtained by CBC News reveal that top officials from Manitoba’s NDP government and three deputy ministers held discussions in October and November 2025 with representatives from Rothschild & Co., an international financial services and advisory firm. The discussions revolved around exploring the feasibility of establishing an AI data center that would require 250 to 300 megawatts from Manitoba Hydro’s grid, as well as attracting hyperscale operators. The province highlighted its advantages such as immediate power availability, clean hydro power, lower cooling expenses, and potential expedited permitting.
Regarding the AI data center plans, Premier Kinew expressed a shift in perspective, citing concerns over excessive energy consumption and questionable long-term economic benefits. Kinew stated that after a thorough examination of the AI data center market, the decision was made to forego pursuing such ventures. The focus has now turned towards reconsidering the Conawapa hydro project, acknowledging the province’s future energy needs.
The Rothschild & Co. meeting notes disclosed that Manitoba was revisiting the concept of constructing a dam and generating station at Conawapa on the Nelson River with an estimated cost of $18 to $20 billion. The proposal suggested exploring various funding models, including collaboration with Canadian pension funds, equity offerings, or land concessions to private partners. Manitoba Hydro’s financial challenges and the imperative to develop a funding model leveraging private capital without impacting the provincial balance sheet were emphasized.
Premier Kinew, who initially showed reluctance towards new hydro projects, emphasized the importance of exploring all funding possibilities, including partnerships with private entities, given the substantial scale of the hydro initiative. The premier stressed the significance of objectively assessing proposals for the benefit of Manitoba’s economy and evaluating the potential partners and financing options available.
Kinew denied formal engagement with Rothschild & Co. and mentioned seeking counsel from other financial advisors besides the firm. The province was advised by Rothschild & Co. to consider signing a non-disclosure agreement and proceed with a request for proposals for both the AI data center and hydro station. The meeting notes highlighted Manitoba Hydro’s 11 pending power applications, all related to AI-focused data centers, and emphasized the need for independent technical expertise.
In light of these developments, the province is contemplating the funding and partnership landscape for large-scale projects while keeping a close eye on future energy demands and the financial sustainability of such undertakings.