Allied and Westbank Move on Two Vancouver Data Center Projects
Allied Properties REIT is advancing a 10-story AI-focused data center at 150 West Georgia in downtown Vancouver. Project partner Westbank is also pursuing a separate office conversion to data center at 111 E 5th Avenue.
Both plays signal a clear pivot from traditional office to digital infrastructure, backed by firm utility commitments and flexible deal structures. For developers and contractors, the opportunity sits at the intersection of grid capacity, district energy, and fast-tracked reuse of existing assets.
150 West Georgia: From Office Plan to 10-Story AI Data Center
The municipally approved site at 150 West Georgia is being repositioned for a 10-story data center. Allied said local utility BC Hydro has committed 39MW of electrical capacity, with a path to 50MW and potential up to 100MW. The project could tie into Creative Energy's district heating network, creating a useful outlet for server heat.
Allied has extended Westbank's loan on the site to December 2026 with additional security as the plan shifts from office to data center. Once complete, the partners intend to sell a major portion to a Canadian operator, repay part of Allied's loan, and keep a minority interest. No operator has been named.
Earlier designs called for a 17-storey commercial building plus a six-story entertainment complex on a site that includes a 1970s natural gas heating plant now being replaced and upgraded. Underground work linked to the district energy system began roughly two years ago, while above-grade construction did not proceed. A separate report suggested a 48-story mixed-use tower with a data center component; it's unclear how that aligns with the current 10-story plan.
Why This Matters to Project Teams
- Grid capacity and timelines: A 39MW commitment with a runway toward 50-100MW indicates coordinated utility planning and long lead times for interconnection. Early engagement with BC Hydro interconnections is essential for schedule certainty.
- Heat reuse: Potential integration with Creative Energy's district network could improve project economics and ESG outcomes. Expect Design coordination on heat rejection temperatures, metering, and off-take agreements.
- Capital strategy: The plan to sell a large portion to an operator while retaining a minority interest suggests a "develop-to-core" or condo-style approach. This supports earlier monetization, but requires clear demarcation of base-building systems versus tenant fit-out scope.
- Urban delivery: A 10-story data center brings higher floor loads, dense MEP, and strict acoustic and emissions constraints. Plan for seismic bracing, generator permitting, nighttime noise limits, and coordinated logistics within tight downtown streets.
- Entitlements and phasing: The extended loan timeline signals ongoing design, procurement, and approvals. Lock in utility milestones and district energy agreements early to avoid redesigns and cost creep.
Westbank's M3 Office Conversion at 111 E 5th Avenue
Less than two miles south, Westbank has filed to convert the M3 building-three stories, built in 1977-into a data center. The plan shifts almost the entire building to technical use, with underground parking repurposed for support spaces. A ground-floor restaurant would remain, keeping some street-level activation.
The data center footprint would be 83,245 sq ft out of a total 133,125 sq ft. The property was previously occupied by Hootsuite.
Conversion Checklist for Practitioners
- Structure and vibration: Verify floor loading for racks and battery systems, plus roof capacity for cooling equipment. Expect targeted strengthening and vibration control.
- Electrical backbone: Space-plan for new switchgear, UPS rooms, and generator placement with adequate setbacks. Confirm fuel storage, exhaust routing, and redundancy targets.
- Cooling strategy: Evaluate water-side vs. air-side options, heat rejection to district systems, and acoustic treatments for fans and towers. Consider future AI loads and higher densities.
- Life safety: Update fire detection/suppression (e.g., clean agent zones), compartmentation, and egress for 24/7 operations. Coordinate with insurers on protection standards.
- Connectivity: Provide diverse fiber entries, redundant meet-me paths, and secure MPOE rooms with flood and tamper protection.
- Codes and permits: Change-of-use triggers, seismic retrofits, and energy bylaws can affect scope. Budget time for utility studies and neighborhood feedback on noise and traffic.
Market Context
Vancouver stands alongside Toronto and Montreal as a primary Canadian hub for data centers. Operators in the city include Cologix, eStruxture, Hut 8, Equinix, and several local providers. With AI deployments pushing higher densities and larger campus footprints, access to reliable electrical capacity and heat reuse options is becoming a key site-selection filter.
What to Watch Next
- Operator selection for 150 West Georgia and the final deal structure for the partial sale.
- Confirmed utility allocation milestones and phasing from 39MW toward 50-100MW.
- Scope of district energy integration and measurable heat recovery outcomes.
- Permitting and construction start dates for both projects, including any seismic or envelope upgrades.
- Community conditions on generator placement, acoustics, and traffic for equipment deliveries.
For owners and contractors building internal AI capabilities to support digital infrastructure projects, you can review role-specific training options here: AI courses by job.
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