Just as hydro power elevated Quebec and the oil sands propelled Alberta onto the global energy stage, data centres could become the next pillar of Canada’s economic growth for decades to come.
As I write this, hyperscalers are racing to secure capacity and funding for their projects around the globe. As demand for AI infrastructure continues to accelerate, the limiting factor is no longer chips: it’s power.
Goldman Sachs estimates that global data-centre power demand could rise by over 165% by 2030, placing unprecedented pressure on grids that are already facing capacity concerns.
In this environment, capital will flow to jurisdictions that provide a reliable grid, affordable electricity at speed, and streamlined regulatory pathways for large-scale energy projects.
This is exactly where Alberta stands apart. But why?
Alberta combines three advantages that very few jurisdictions in North America can replicate.
Firstly, Alberta is the only fully deregulated electricity market in Canada, which allows for electricity prices to be set through a competitive market, giving industrial users the ability to secure power agreements without navigating government price approvals. In practical terms, it reduces bureaucratic delays and allows these projects to close faster than in provinces with regulated utilities.
Secondly, under Alberta’s bill 8, data centres must “bring their own generation,” which ultimately reduces grid dependency and will improve timeline certainty for these projects to be developed. This ultimately benefits both (i) individual ratepayers in Alberta, who are shielded from bearing the costs of new transmission upgrades, as well as (ii) developers, who gain greater control over project timelines.
Lastly, Alberta is home to the one of the largest natural gas basins in the continent, and even with LNG Canada growing at a rapid pace, supply remains structurally strong for decades to come.
Unlike many US or eastern Canadian markets where gas must be transported long distances, Alberta sits directly at the source. This results in very low transportation costs, and provides a reliable and steady supply. Additionally, AECO, which is Alberta’s gas benchmark, frequently trades at a discount to other North American hubs largely due to pipeline constraints as well as oversupply.
With these combined advantages, lower delivered gas prices feed directly into cheaper electricity generation for hyperscale operators. While other jurisdictions face higher natural gas prices as well as tighter supply, Alberta’s energy abundance is evidently a competitive advantage.
These structural advantages are not just theoretical. They have already begun to translate into real investment interest and economic opportunity throughout the province.
Large-scale data centres are capital intensive projects that generate economic spillovers through construction and operations while also supporting local service providers and municipal tax bases. Beyond direct employment, data centres also act as economic anchors. They increase demand for power generation and natural gas production, ultimately strengthening the oil and gas sector as a whole.
Projects such as the proposed Olds data centre demonstrate how Alberta’s structural advantages can translate into real economic growth. The $10 billion, 1-gigawatt data centre is expected to support approximately 2000 construction jobs as well as 1000 permanent positions once operational, which would make it the largest digital infrastructure project in Canadian history.
Hydro built Quebec. Oil built Alberta. Data centres could define Alberta and Canada’s next era, powered by the energy advantage that has fuelled Canada for decades.
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