Canada's First Indigenous AI Campus Drives Clean Energy Sovereignty

Vancouver-based DMG Blockchain Solutions Inc. (TSX-V: DMGI) has signed a second Memorandum of Understanding (MOU) with the Malahat Nation's Economic Development Corporation (YOS) to establish the Malahat-DMG Utility Limited Partnership (MDULP), a regulated utility majority-owned by the Indigenous community. This partnership aims to power emerging clean technology and digital infrastructure projects on Malahat Nation lands near Mill Bay, British Columbia, marking a milestone in Canada's first Indigenous-led AI data center campus, according to a GlobeNewswire release.

The MOU builds on a 2024 agreement to co-develop 30 megawatts of sovereign AI data centers, split evenly between Malahat and DMG. The new utility will provide electricity and natural gas to support AI computing, renewable energy, and industrial development, with plans to interconnect with BC Hydro and partner with FortisBC for future natural gas distribution, the release said. Gordon Harry, Chief of Malahat Nation, emphasized the initiative's broader significance: "This partnership is about more than infrastructure—it's about sovereignty." The utility is expected to underpin both the AI data center facility and community infrastructure, aligning with Malahat's environmental values and economic development goals, the release added.

DMG CEO Sheldon Bennett highlighted the collaboration's potential to advance clean energy and reconciliation: "We're honored to work alongside Malahat Nation to design and deploy a Canadian Indigenous-led regulated utility. This partnership demonstrates how clean energy generation, digital infrastructure, and reconciliation can move forward together." The project will include substation upgrades and energy infrastructure development, creating long-term job opportunities and training programs for Malahat members, according to the release.

The initiative reflects a growing trend of blockchain and AI companies leveraging renewable energy sources to power high-performance computing (HPC) and data centers. DMG's vertically integrated model, which combines blockchain operations with sustainable energy solutions, positions it to capitalize on the surging demand for energy-efficient AI infrastructure. The Malahat-DMG partnership also aligns with Canada's broader push for clean energy adoption, particularly in regions with abundant renewable resources, the release noted.

While the agreement remains subject to definitive contracts, the project has already spurred regulatory and community engagement. Malahat Nation's economic development corporation, YOS, prioritizes ventures that align with Indigenous laws and values, ensuring that growth on its lands benefits future generations. The utility's establishment could set a precedent for Indigenous-led energy projects across Canada, fostering economic resilience while reducing reliance on non-renewable energy sources, the release observed.

The partnership's success hinges on overcoming logistical and regulatory challenges, including securing interconnection agreements and finalizing project timelines. However, both parties have expressed confidence in their ability to navigate these hurdles, citing their complementary strengths: Malahat's leadership in Indigenous economic development and DMG's expertise in blockchain and power infrastructure, the release reported.

As global demand for AI-driven computing expands, the Malahat-DMG utility underscores the intersection of clean energy and technology. By integrating sovereign power solutions with AI infrastructure, the project not only supports Malahat Nation's self-determination but also contributes to Canada's broader clean energy transition.

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