Why Alberta Is Emerging as a Data Center Hub

Alberta is positioning itself as a significant player in the data center market. Alberta's Technology Minister, Nate Glubish, has announced an objective of attracting $100 billion in investments in artificial intelligence data centers over the next five years.

Alberta's data center market is growing rapidly. In December 2024, the Alberta Electric System Operator (AESO) announced twelve new projects that are in pipeline and will require over 6,500 megawatts of electricity. Four of these projects are located in the Calgary area and will need 1,155 megawatts. Beacon AI Data Centres plans to construct five large artificial intelligence hubs.

In October 2024, eStructure Data Centres confirmed their plans to build a $750 million, 90-megawatt hyperscale facility in Rocky View County, north of Calgary. Gryphon Digital Mining is also looking to establish an AI data center powered by natural gas. Additionally, Kevin O'Leary has proposed a $70 billion data center project in Alberta's Greenview Industrial Gateway.

Alberta presents several advantages for data center development, including ample natural resources, competitive tax rates, a deregulated electricity market, a cool climate, and a supportive regulatory environment.

• The Alberta government has introduced an AI data center strategy that aims to leverage natural gas reserves while incorporating renewable energy sources and carbon capture technologies.

• The strategy includes prioritizing both off-grid and grid-connected solutions to ensure electricity affordability and reliability. The government plans to utilize its climate and water resources and innovations in cooling technologies to promote sustainable data centers.

• Alberta is noted for having the lowest tax regime in Canada, which would benefit data center operators within the province.

To achieve the target of $100 billion in data center investments, key areas for the government of Alberta focus include:

1. Ensure a robust fibre optics network is available for data center operators.

2. Reduction of regulatory hurdles.

3. Implementation of an effective marketing plan to attract data center operators.

4. Ensuring access to affordable and reliable electricity.

5. Ensure that all upcoming data centre projects remain on schedule and do not encounter any delays.