The power needs of U.S. data centres are expected to climb sharply over the next decade, with forecasts suggesting demand could hit 106 gigawatts by 2035. While this might seem like a distant issue for Canadian homeowners, the implications could spill into our borders through energy markets, interest rate swings, and the financing of large infrastructure projects. These shifts can ripple through our economy—and the housing market is never far behind.
Many Canadians are already grappling with high mortgage rates and unpredictable home values. Understanding global trends like this can give you an edge in navigating what’s coming next for home prices, borrowing costs, and property demand. Let’s unpack how these energy-heavy tech developments to the south might affect real estate dynamics right here in Canada.
New Demands on the Grid, New Pressures on Rates
Across the U.S., tech giants are racing to expand artificial intelligence infrastructure. That requires real estate—not for homes, but for vast data centres. BloombergNEF now estimates that by 2035, American data centres could demand more than 100 gigawatts of electricity. To put it in context, that’s roughly double the total electricity used by all of Canada in some years.
What’s that got to do with mortgages? Quite a bit, indirectly. Data centres gobble up land and provoke large-scale investments into power grids and energy infrastructure. These demands could drive up the cost of public and private borrowing. If America’s central bank needs to balance inflationary infrastructure spending, it could stick with higher interest rates longer than it otherwise would. And as we’ve seen since 2022, Bank of Canada rate decisions often follow the lead of the U.S. Federal Reserve.
That means your [Best Mortgage Rates](https://unrate.ca/mortgages/) in Canada could stay higher for longer if real estate and infrastructure development in the U.S. continues heating up.
Is This Another Overstated Tech Boom?
Some experts are tapping the brakes. A recent Grid Strategies report argued that utility forecasts may be inflating expected growth, especially when it comes to how many of these data projects actually break ground. They warn we could be looking at hype-driven projections rather than well-grounded plans.
It wouldn’t be the first time. In the mid-2000s, overhyped energy projects were announced and quietly shelved later. If that happens again, markets could cool, which in turn might chill mortgage rates and investor sentiment. However, homeowners can’t afford to bet on a wait-and-see approach. Mortgage holders in variable rate products, in particular, could be vulnerable if central banks respond to perceived inflation led by energy demand, whether it pans out or not.
That’s one reason it might be a good time to examine whether now’s the right time to consider a [Fixed Rate](https://unrate.ca/mortgages/fixed-rate/) mortgage, especially if you’re nearing renewal. Locking in stability can provide some breathing room while the markets sort themselves out.
The Real Estate Supply Chain Could See Pressure
Huge expansion in data infrastructure demands not just energy but also land. While these investments are U.S.-based, they create cross-border demand in a variety of supply chain sectors—everything from steel to high-voltage transmission components. Many of these products are sourced from or move through Canada.
That kind of demand can tighten supply—and increase construction costs here—impacting developers and the price of new homes. Combined with borrowing costs, that could further slow Canada’s housing construction, which is already facing a major shortfall. According to a recent CMHC report, we need 3.5 million new homes by 2030 to restore affordability levels to pre-2000 benchmarks. We’re nowhere near that pace.
If construction costs continue rising due to global infrastructure competition, buyers could face a longer timeline before Canada’s supply catches up. This could lock in elevated home prices in major regions like Toronto, Vancouver, and even smaller growth cities like Halifax or Regina.
Pair that with unpredictable rate scenarios, and some homeowners may benefit from a [Refinance](https://unrate.ca/mortgages/refinance/) to create a cash buffer—especially if you’re balancing renovations, investment properties, or consolidating higher-interest debt.
Long-Term Housing Demand Driven by Energy and Tech
Whether or not these forecasts pan out to the full 106 GW isn’t the only point. The broader message is clear: energy-intensive growth, especially of the AI and data kind, is changing how governments and markets think about long-term investment. That means more infrastructure, more public-private funding partnerships, and more roll-on impact for commodities, utilities, and housing-related industries.
No Canadian homeowner exists in isolation of those forces. If you’re on a tight budget in Alberta or working with an aging roof in Montreal, shocks to the energy and building materials industries affect you. Those shifts inevitably turn heads at the Bank of Canada, where even a half-point change in rates can reshape household budgets and [Mortgage Calculator](https://unrate.ca/mortgage-calculator/) outcomes for years.
A curious side effect of all of this is that more Canadians might turn to alternative mortgage solutions, like a [Reverse Mortgage](https://unrate.ca/mortgages/reverse-mortgages/) to tap into home equity as prices remain high and traditional credit tightens.
Conclusion: Stay Ahead of the Curve
As Canada watches from the north, the ripple effects of America’s AI and energy boom may bring real consequences for our housing market. From borrowing costs to home construction, these tech-driven shifts could play a larger role in your financial decisions than you’d expect.
If you’re a homeowner navigating today’s rates or planning ahead for renewal, having a clear picture of global trends matters. At Unrate, we keep an eye on the markets so you don’t have to. Let us help you make smarter, more confident mortgage moves—no matter how fast the world changes.
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