A company involved in the development of a significant data center in Nova Scotia for Anthropic, a prominent artificial intelligence firm, is currently embroiled in a disagreement over land fees related to a defunct wind-powered hydrogen project in southern Newfoundland.
The government of Newfoundland and Labrador has acknowledged that it is still in pursuit of outstanding fees from EverWind Fuels for Crown lands designated for the company’s proposed wind-hydrogen venture on the Burin Peninsula in Newfoundland.
However, a representative from EverWind has refuted any dues owed to the government, stating that the company never signed a Crown land reservation agreement or committed to paying the fees now being demanded. The official emphasized that EverWind disputed the amount of land allocated by the province for the project and the associated payment terms.
Despite EverWind’s objections, the Newfoundland and Labrador government has not responded to the company’s assertions. EverWind recently announced plans to construct a $10 billion data center in Point Tupper, near Port Hawkesbury in Cape Breton, with Anthropic already securing a 20-year lease for the facility.
Previously, EverWind had proposed wind-powered hydrogen projects in Point Tupper and on the Burin Peninsula. In 2023, the government allocated nearly 2,700 square kilometers of Crown land for EverWind’s project, charging the company over $11.4 million annually, equivalent to about 3.5% of the land’s market value.
EverWind expressed dissatisfaction with the allocated land, citing unsuitable areas for development such as watersheds and residential zones. The company had requested the province to reduce the reserved land area, which was eventually downsized to approximately 1,800 square kilometers in April 2025.
Email correspondence between EverWind and government officials highlighted ongoing discussions about the land reserve and associated fees, with EverWind making payments exceeding $5.6 million while attempting to resolve issues with the land reservation and regulatory frameworks.
Following the change in government, the province reclaimed the land from EverWind and two other wind-hydrogen projects due to outstanding reserve fees and stalled developments. Another company, World Energy GH2, facing similar challenges in western Newfoundland, filed for creditor protection owing approximately $10.5 million in land fees to the province.
The situation prompted a provincial Supreme Court judge to grant protection to World Energy GH2, allowing the company to sell assets and seek refinancing until the next month. At the data center announcement in Cape Breton, EverWind’s CEO did not disclose the lease value but confirmed the facility’s expected launch next year.
Newfoundland and Labrador’s Premier expressed openness to data center projects while defending the decision to withdraw EverWind’s Crown lands, emphasizing the province’s commitment to hydroelectric opportunities and future developments.
