As data centers are increasingly at the center of the energy debate, QScale confirms the opening of a second campus in Saint-Bruno.
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However, the largely publicly funded Quebec company has still not signed a deal with a first customer for its Lévis campus, which is scheduled to open in January. A circumstance that arouses a lot of skepticism in the industry.
Photo archive, Diane Tremblay
Martin Bouchard (middle), CEO of QScale, and his two partners Dany Perron (left) and Vincent Thibault (right).
“We have almost a dozen nondisclosure agreements with all kinds of big companies around the world,” QScale CEO, serial entrepreneur Martin Bouchard told the Journal.
“We hope to be able to sign the contractual agreements by spring,” he adds. It’s extremely difficult to sign a contract before the job is done because the equipment that’s in there, the customers’ computers, is worth hundreds of millions of dollars, and of course they want to make sure of that [les installations] meet all standards. »
Giants as customers?
QScale specifically targets aerospace and pharmaceutical companies that have critical computing needs. It could even act as a subcontractor for web giants that already operate data centers in Quebec: Amazon, Google, and Microsoft.
The French company Exaion, on the other hand, already has three customers for its first data center in Quebec, which will soon be inaugurated in Sherbrooke, reveals Fatih Balyeli, CEO of this subsidiary of the giant EDF.
However, Exaion and QScale could work together. “We see QScale more as a partner than as a competitor,” emphasizes Mr. Balyeli.
Strong interest in Europe
According to Martin Bouchard, the energy crisis raging from the war in Ukraine has made Quebec even more attractive for intensive computing, which is very energy intensive.
“What’s happening in Europe has definitely accelerated our business plan,” he said.
QScale has advanced planning for its second phase in Lévis, which was not due to begin until next year. And the company just confirmed construction of a second campus in the Montreal suburbs that will be half the size of Lévis’.
“We can say that we can move forward with the Saint Bruno project,” stated Mr. Bouchard, recalling that Hydro-Québec has already granted QScale all of the electricity needs for its first two sites.
No more public money
However, funding for these projects has yet to be found. We’re talking $100 million for Phase 2 in Lévis, $500 million for the entire Saint Bruno campus, and $1.5 billion for a third campus that could see the light of day in Quebec or elsewhere.
In June, QScale engaged US investment bank Houlihan Lokey, Scotia and Desjardins to raise capital. “There is a lot of interest,” says Martin Bouchard.
Last week the entrepreneur met with the powerful Minister for Economy, Innovation and Energy, Pierre Fitzgibbon.
” I understand that [le gouvernement] sometimes get caught on projects that require him to constantly give money, Mr. Bouchard realizes. We took that literally. We said to ourselves, “We want to be able to operate without government interference.” I am very proud to say that this is the case. If the government wants to reinvest, it can do so, but that’s not part of the plans. It is not required in relation to our business plan. »
HUGE FINANCIAL SUPPORT FOR QSCALE FROM THE STATE OF QUEBEC
- Ready : 60 million dollars
- Shares: 30 million dollars
- Debenture (loan): $5 million
HYDRO QUEBEC RATES
- From CA¢5.18/kWh (transport and distribution included)
Source: Hydro Quebec
FIVE BENEFITS FOR HYDRO
Source: Hydro Quebec
MAJOR PROJECTS UNDERWAY
- Google (185 megawatts)
- Qscale (96 megawatts + 44 megawatts)
- advantage (30 megawatts)
- enovum (24 megawatts)
- OVH (Not available)
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