On December 4, 2024, Alberta’s government rolled out an ambitious AI Strategy aimed at positioning the province as the hottest spot in North America for building artificial intelligence data centres. With the global demand for data centre capacity projected to triple by 2030, Alberta’s Minister of Technology and Innovation, Nate Glubish, isn’t just talking the talk; he’s laying the groundwork for a technological revolution. Glubish envisions attracting a whopping $100 billion in private investment over the next five years. The early announcements have already set the wheels in motion, with eStructure Data Centres revealing plans for a 90MW CAL-3 hyperscale facility just north of Calgary, and a grander vision taking shape with the proposed Wonder Valley Industrial Park near Grand Prairie, boasting a potential investment of over $70 billion.
Alberta is touting its unique advantages that make it a prime location for these energy-intensive facilities. The province’s abundant natural gas reserves promise a reliable power supply, which is crucial for data centres that operate around the clock. Moreover, Alberta’s energy-only electricity market allows for private investment in new power generation, giving companies the flexibility to meet their energy needs without the constraints often found in more regulated markets. The cold climate is another feather in Alberta’s cap, as it enables more efficient cooling of servers, reducing the need for costly artificial cooling systems and making operations more sustainable. Add to that a low corporate tax rate and a commitment to cut through bureaucratic red tape, and you’ve got a recipe for success.
The AI Strategy is built on three strategic pillars: power capacity, sustainable cooling, and economic growth. The first pillar emphasizes high-capacity power solutions, integrating renewable energy sources and carbon capture technologies with Alberta’s natural gas reserves. The second pillar leverages the province’s cold climate and water resources to develop innovative cooling technologies, while the third pillar aims to maintain Alberta’s competitive edge as a low-tax environment that fosters local job creation and technological advancement.
To bring this ambitious strategy to life, Alberta plans to undertake several key initiatives. First on the list is regulatory modernization, which includes a thorough review of approval timelines for AI data centre development. The goal is to cut delays and provide greater certainty for investors. The provincial government is also introducing an AI data centre concierge program to assist project proponents through the maze of regulations and infrastructure requirements. Importantly, Alberta aims to work closely with Indigenous communities and local municipalities, ensuring that economic growth is inclusive and beneficial for all stakeholders.
However, the road ahead is not without its bumps. Data centres are complex and energy-hungry beasts, and while Alberta’s strategy is ambitious, it’s essential to keep an eye on how these initiatives roll out. Legal considerations abound, from taxes and land use to energy regulations and stakeholder consultations. As Alberta pushes forward, stakeholders will need to navigate a landscape that could be as challenging as it is promising.
The implications of Alberta’s AI Strategy extend beyond the province’s borders. If successful, Alberta could set a precedent for how other regions approach data centre development, particularly in terms of sustainability and regulatory efficiency. As the demand for data centre capacity surges, Alberta’s proactive approach could very well spark a new wave of investment and innovation, not just in the province, but across North America. The stakes are high, and Alberta is betting big on its future as a leader in the AI-driven economy.
