Alberta’s ambitions to become an AI data centre powerhouse could be hamstrung by a lack of, well, power.
Driving the news: Per a new report from The Logic, the province is weighing 33 data centre proposals that, taken together, would consume over 20,000 megawatts of power — an amount roughly equal to the province’s entire electricity grid output.
- While only a handful of the proposed projects are likely to be built, this number highlights just how big a strain data centres promise to put on Alberta’s grid.
Big picture: The data centre boom is highly attractive as it offers Alberta many potential customers for its abundant natural gas. While Big Tech wants to power centres with renewables, the short-term gap will likely need to be filled by oil, which the province is itching to supply.
- Alberta’s innovation minister visited California three times in a span of three months last year to talk with the likes of Google, Microsoft, and Meta about Albertan energy.
- And the schmoozing apparently went well, with Meta reportedly nearing a deal with companies Pembina Pipeline and Kineticor to build a centre outside Edmonton.
Why it matters: The boom presents an economic opportunity for Canadian oil, but Alberta must be careful. It already has the priciest power bills of any province, and one expert told The Logic data centres could make electricity “impossible” to afford without subsidies.—QH