Telus and Westbank Pivot Vancouver Sites Toward AI Data Centres
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Telus is moving forward with a B.C. sovereign AI infrastructure cluster that includes two Vancouver facilities built with Westbank. Daily Hive reported that the broader three-site network, including Kamloops, is expected to scale to more than 60,000 GPUs and 150 megawatts of computing capacity by 2032.
The Vancouver sites are not simple greenfield projects. At 111 East 5th Avenue in Mount Pleasant, Westbank's M3 office building is expected to be converted into a 77,000 sq. ft. AI data centre, with initial launch in late 2026 and expansion through 2028. At 150 West Georgia Street beside BC Place, a previously approved office and later mixed-use concept is now being directed toward a 10-storey AI data centre over Creative Energy's upgraded district energy plant.
Question
Why does this matter for Vancouver real estate beyond the technology headline? It shows how weak office demand, high construction costs, and demand for compute infrastructure can change the highest and best use of downtown and Mount Pleasant sites. A building that once pencilled as office or mixed-use may now compete as critical infrastructure.
Editor's Comment
This is a meaningful “highest-and-best-use” signal for both Downtown and Mount Pleasant: when a major operator can justify converting or reprogramming prime sites into compute infrastructure, it underscores how challenged traditional office underwriting has become against today’s construction and financing costs. For investors, the value conversation shifts from headline office rents to fundamentals like secured power, cooling strategy, zoning/permit flexibility, and the covenant strength of a long-duration infrastructure tenant. The 150 W Georgia concept is also a reminder that energy integration can become a differentiator in Vancouver, where grid constraints and sustainability requirements increasingly affect feasibility. That said, data centres typically don’t replace the daily foot traffic that offices, hotels, or residential bring—so the ground-floor program and public-realm execution near BC Place will matter for surrounding retail and the broader stadium district feel. Net-net: not every office building is a candidate, but this raises the bar on due diligence. Buyers should be asking early about electrical capacity and timelines, heat-recovery partnerships, and whether the design avoids creating a “dead edge” at street level.