Can Canada’s energy capital become a data centre hub without sending power bills up 200%?
Driving the news: Alberta’s energy grid operator is set to roll out new rules for tech companies building data centres in the province, allowing developers to temporarily tap into the province’s electricity grid as they build their own long-term power source.
Per The Logic, the rules will allow data centre operators to tap into a dedicated pool in the province’s grid for up to three years, but they must show they’re making progress on creating their own power generation.
The provincial government has pitched Silicon Valley for years to build data centres in Alberta, promising cheap land, colder weather that lowers the costs of cooling the centres, and an abundance of natural gas.
Why it matters: An October report found that the province’s 33 data centre proposals would consume over 20,000 megawatts of power — roughly equal to the capacity of the province’s entire electricity grid. This new bring-your-own-power (BYOP) policy is the first sign of how Alberta plans to balance its data centre ambitions without putting the power grid at risk.
Zoom out: Public opinion has soured on data centres, particularly because of their impact on power grids — electricity prices have surged in areas near significant data centre activity in the U.S. A recent Angus Reid poll found that 68% of Canadians would oppose a large AI data centre within a few blocks of their home.
Bottom line: As one clean energy expert told The Logic, “If we don’t get the balance right, I can tell you right now electricity in the next 10 years will be impossible for most people to afford without subsidies.”—LA
