Alberta Aims to Become North American Destination for AI Data Centre Investment
Decemeber 9, 2024
The AI data centre attraction strategy identifies three pillars that create the foundation of Alberta’s work to position itself as a destination in the global AI landscape: power capacity, sustainable cooling and economic diversification. In each of these strategic areas, there are policy and regulatory levers required in addition to other steps Alberta’s government is taking to ensure Alberta is the most attractive and competitive destination for this emerging sector. The entire approach prioritizes competitive advantages, economic integration, market stability and keeping utilities reliable and affordable.
The world’s largest AI companies are in search of opportunities to build and energize their data centres. Alberta, with its abundant natural gas supply and world-class power industry, is highly attractive to AI data centre projects. The province’s unique competitive power market opens the door to many opportunities for AI companies to partner with Alberta’s talented and experienced electricity sector. The sector has decades of experience in finding innovative solutions to meet industry’s power needs while maintaining a balance of affordability and reliability in a system that Albertans count on.
AI data centres generate a lot of heat and require cooling. The strategy encourages operators to determine the cooling technology best suited for their needs, water license availability and regional and project circumstance. Additionally, Alberta’s climate offers significant advantages for AI data centres because of the province’s cold winters, which would reduce the need for artificial cooling systems.
Alberta’s government seeks to ensure Albertans benefit from AI data centres and is committed to ensuring economic growth and shared prosperity while ensuring Alberta continues to have the lowest taxes in Canada and is competitive across North America.
Alberta is committed to fostering innovation and ensuring technology development aligns with industry needs. The strategy was developed after extensive consultation with organizations and businesses in the AI space and market participants.
Quick facts
- Over the past several months, Technology and Innovation met with AI data centre builders and operators, power generators, natural resource sector participants, telecommunications companies and municipalities actively pursuing AI data centres.
- AI data centre market size is anticipated to more than double by 2030 to more than $820 billion. (P&S Market Research)
- Alberta Electricity System Operator (AESO) has 12 data centre projects on their project list totalling 6,455 MW of load.
- Most of the power demand on the AESO project list is from data centers.
- Currently there is about 1,000 MW of additional dispatchable generation over Alberta’s current needs. This amount is dynamic and may change due to factors such as generation retirements, outages, derates, or new additions.
