Alberta is Proposing Changes that Would Allow Data Centres to Bring their Own Generation
November 25,2025
With the emergence of innovative yet energy-intensive artificial intelligence technologies and growing electricity demand, Bill 8, the Utilities Statutes Amendment Act, 2025, would pave the way for data centres to bring their own generation. Amendments would also further advance the modernization of Alberta’s electricity market to ensure the reliability and affordability of the power grid for generations to come.
If passed, proposed amendments would see data centres that bring their own generation prioritized, accelerating the approval process and supporting their connection to the grid. This would support both the reliability of the power grid for Albertans and speed access to market for industry. Changes would also ensure that data centre projects – not Alberta ratepayers – would pay for necessary transmission upgrades for data centre grid connections.
Advancing the Restructured Energy Market
Bill 8 also proposes changes to continue the work already underway to modernize the province’s electricity grid and restore the balance between affordability, reliability and sustainability.
If passed, the Utilities Statutes Amendment Act would build on changes made in the spring through the Energy and Utilities Statutes Amendment Act, 2025 to support the implementation of the Restructured Energy Market. This includes the finalization of the market’s framework, based on extensive industry engagement by the Alberta Electric System Operator (AESO).
The bill also proposes changes to enhance electricity transmission policy, recognizing incumbent generators and incentivizing more efficient use of existing power infrastructure. It will also enable Alberta’s hydrogen-blended natural gas regulatory framework around hydrogen blending pilot projects.
Quick facts
- The AESO has allocated 1,200 MW through its interim approach for data centre connection requests and is beginning work to develop a long-term framework for integrating new large load electricity customers, like data centres.
- Implementation of the Restructured Energy Market is expected to begin in 2027.
