The Yukon could be the next home to Google and Facebook data centres. In theory.

A new report states the territory is an ideal location for the outsized data warehouses, which hold vast amounts of digital information and allow Internet-related, data-heavy multinationals to function.

The cold climate of the North would mean a lower bill attached to cooling the server farms’ extensive electronic infrastructure, which can include thousands of computers, according to the government-commissioned report, published this week.

“If you have one of these in California or southern B.C., you do have a challenge and a significant cost,” said Economic Development Minister Currie Dixon. “Our cold air and cold water is actually an asset to us.”

There’s just one problem: the Yukon lacks a backup line connecting it to the broader fibre-optic grid, as well as a reliable electricity supply for the would-be warehouses.

“Last week we got a taste of it when an errant backhoe breached a cable and caused significant degradation of service,” Dixon said.

He was referring to the service blackout for Internet and cellphone users following a break in the Northwestel line in British Columbia.

“That would be unacceptable to a data centre.”

Last month, the government awarded a contract to Stantec, a Whitehorse-based consulting and engineering firm, to prepare a report on a so-called redundant fibre-optic cable.

“It is a significant impediment,” Dixon said.

Of the lingering threat of temporary electricity outages, Dixson said: “It’s absolutely critical that data centres maintain connectivity to their users ... thankfully we already have near- and mid-term supplies for energy in the Yukon.

Data centres are located around the world, with Finland and Sweden hosting enormous server farms built by Google and Facebook, respectively.

The report by WCM Consulting states that “rapid growth in the use of the Internet for most communications (means) demand is unlikely to abate.”

After construction of this type of facility, however, jobs opportunities could be next to nil, as the centres can be run remotely.

“In theory, the operation can ‘go dark’; that is, no human need be on site, but, in practice on-site or available manpower may range from a dozen up to 100,” the report states.

Even the indirect effects of the hypothetical centre — “(t)his should be considered as a main economic development thrust” — are vague, however.

“Such industries are very often part of what is called the ‘Creative Economy,’ according to the study, which does not delve deeply into how server farms could drive regional markets.

Interestingly, abandoned mines might actually be an advantage in attracting data centre builders.

“The rationale for the use of mines as data center locations is based primarily on cheaper cooling, as well as a naturally more secure environment.

Norway and Pennsylvania have already put old mining sites to use for digital storage.