Data centres are hungry for power, and Alberta is pitching itself as the place to build

Source: Kyle Bakx | · CBC NEWS · | August 18, 2024

Province wants to lure investment from Silicon Valley, but is also wary of possible impacts to the power grid.

Alberta is putting itself in the race for a slice of the soaring growth of data centres in North America. A pair of Alberta cabinet ministers set off for Silicon Valley last week with the sole focus of promoting the province as a "prime location" to build the physical structures that store and process our digital information.

Major tech companies are scouring the world for available electricity, and the province isn't alone in trying to lure data centre investment.

Alberta also has some challenges compared to other provinces and U.S. states, including questions about how much pollution its natural gas-dominated electricity grid produces now and into the future.

The opportunity is immense and the province has a unique offering, but there are also questions about what the overall impact will be of constructing the electricity-hungry centres required for the booming artificial intelligence sector.

And while some cabinet ministers are enthusiastic about the massive investment opportunity, others are more cautious over what the ultimate impact will be on the province.

"We already have challenges with our electrical system," said Alberta Finance Minister Nate Horner, expressing caution about any unintended consequences that could impact utility bills.

"You really need to get an understanding of what the return on investment would be for the province," he said. "That's why we're digging into it."

Trying to be Canada's top spot

Currently, the majority of data centres in Canada are located in Ontario and Quebec because of the large population of the two provinces, experts say. Quebec's low-cost renewable electricity, primarily from hydropower, has also helped attract investment.