Canada’s inaugural Indigenous AI campus leads the way in advancing clean energy independence

DMG Blockchain Solutions Inc., headquartered in Vancouver and listed on the TSX-V as DMGI, has entered into a second Memorandum of Understanding (MOU) with the Malahat Nation's Economic Development Corporation (YOS). This agreement establishes the Malahat-DMG Utility Limited Partnership (MDULP), a regulated utility primarily owned by the Indigenous community. The collaboration is set to support new clean technology and digital infrastructure initiatives on Malahat Nation territory near Mill Bay, British Columbia, and represents a significant step in launching Canada’s inaugural Indigenous-led AI data center campus, according to a

This MOU expands upon a 2024 partnership to jointly develop 30 megawatts of sovereign AI data centers, with equal ownership between Malahat and DMG. The newly formed utility will deliver electricity and natural gas to power AI computing, green energy, and industrial projects, with intentions to connect to BC Hydro and collaborate with FortisBC for future gas distribution, the announcement stated. Malahat Nation Chief Gordon Harry highlighted the broader impact of the initiative, saying, "This collaboration is about more than just infrastructure—it's about asserting sovereignty." The utility is anticipated to support both the AI data center and community infrastructure, reflecting Malahat’s commitment to environmental stewardship and economic progress, the announcement continued.

Sheldon Bennett, CEO of DMG, underscored the partnership’s role in advancing clean energy and reconciliation: "We are privileged to partner with Malahat Nation to create and implement a Canadian Indigenous-led regulated utility. This collaboration illustrates how clean energy, digital infrastructure, and reconciliation can progress together." The project will involve upgrading substations and building out energy infrastructure, generating sustainable employment and training opportunities for Malahat members, according to the announcement.

This initiative is part of a broader movement where blockchain and AI firms are increasingly turning to renewable energy to power high-performance computing (HPC) and data centers. DMG’s integrated approach, which merges blockchain operations with eco-friendly energy solutions, positions the company to meet the rising demand for energy-efficient AI infrastructure. The alliance between Malahat and DMG also supports Canada’s national efforts to expand clean energy use, especially in areas rich in renewable resources, the announcement noted.

Although the agreement still requires final contracts, the project has already prompted regulatory reviews and community discussions. YOS, Malahat Nation’s economic development arm, focuses on projects that respect Indigenous principles and traditions, ensuring that development benefits future generations. The creation of this utility could serve as a model for other Indigenous-led energy initiatives across Canada, promoting economic strength while decreasing dependence on fossil fuels, the announcement observed.

The success of this partnership will depend on addressing logistical and regulatory obstacles, such as securing interconnection agreements and finalizing project schedules. Nevertheless, both organizations are optimistic about overcoming these challenges, citing Malahat’s expertise in Indigenous economic growth and DMG’s background in blockchain and energy infrastructure, the announcement reported.

As the global appetite for AI-powered computing grows, the Malahat-DMG utility highlights the convergence of clean energy and advanced technology. By combining sovereign energy solutions with AI infrastructure, the project not only advances Malahat Nation’s self-governance but also supports Canada’s transition to a cleaner energy future.