“We should be exporting compute, not molecules,” said Ian Nieboer during the opening panel at YYC DataCon 2025.
Alberta has benefited for decades by exporting raw energy — primarily oil and natural gas. But as the world shifts toward digitization, the province faces a choice. Does it continue with traditional exports, or does it pivot toward an industry that could reshape its economic future?
Instead of shipping natural gas south at a discount, Alberta has an opportunity to convert that energy into electricity, power data centres, and export something more valuable — compute.
Nieboer, managing director at Enverus, was joined on the panel by Mark Taylor, executive vice president at Captus Generation, and Akbar Nurlybayev, co-founder and COO of CentML. The discussion, which explored Alberta’s potential as a home for data centre development, was moderated by Wish Bakshi, who kept the conversation dynamic with sharp insights and humour.
“Having a market with excess power at this moment is a pretty special place to be,” said Neiboer.
The question is what Alberta does to leverage that advantage.
The rising demand for AI and compute power
Artificial intelligence and cloud computing require significant energy.
AI models continue to grow, and each advancement demands more power. Training an advanced AI model like GPT-4 consumes millions of kilowatt-hours, comparable to the annual energy use of a small town. Quantum computing adds another layer of complexity, requiring ultra-low temperatures and steady power sources.
This increasing demand has global tech companies searching for locations with reliable and affordable energy. Alberta has the resources to meet this need, but it must develop infrastructure and regulatory frameworks while balancing production, security, and sustainability.
Learning from global examples
The concept of turning energy into a high-value export isn’t new. Hydropower-rich regions like Iceland, Norway, and Quebec have long used their abundant electricity to power aluminum smelters, effectively exporting energy in a refined form. This approach allowed them to add value to their natural resources rather than exporting raw materials.
Iceland has taken this further by using geothermal and hydroelectric power to run data centres, turning energy into cloud computing exports. The Nordic countries have done the same, attracting major data centre investments.
Alberta can follow a similar model, but it needs to act with urgency.
Alberta’s competitive edge
Beyond energy resources, Alberta has factors working in its favour.
The province has a skilled workforce with engineering expertise from the oil and gas sector and a growing tech industry.
The climate is another advantage — cold weather reduces the need for expensive cooling systems in data centres. Cooling systems eat up 38% to 40% of a data center’s energy, so tapping into natural cold air cuts costs and lowers environmental impact.
Geographic stability is another key factor. Unlike regions prone to natural disasters, Alberta offers a secure location for critical computing infrastructure.
Ian Nieboer noted that Alberta’s ability to attract data centre investment hinges not just on energy availability, but on ensuring that power generation grows in a way that supports long-term economic and environmental sustainability.
Policy, investment, and infrastructure: The road to Alberta’s data centre future
For Alberta to capitalize on this opportunity, it needs more than just infrastructure — it needs the right policies and investments to support long-term growth. The provincial government must prioritize power grid expansion, fibre-optic networks, and high-speed internet connectivity, while also ensuring a regulatory framework that balances investment attraction with public support.
Scaling up Alberta’s data centre capacity requires more than enthusiasm. Data centres need robust fibre-optic connections, stable electricity, and streamlined permitting to encourage development.
In 2016, the Energy Diversification Advisory Committee outlined steps for building a more resilient energy economy, emphasizing the need for a strong regulatory framework and incentives to attract tech firms. Alberta could consider additional tax incentives, expedited approvals, and support for renewable energy integration into compute infrastructure.
Power availability is a key concern.
While Alberta has seen growing interest in data centres — including a proposed facility that aims to be the world’s largest AI data centre — the province’s grid is not built for such rapid expansion.
Mark Taylor cautioned that if data centres draw too much power without additional generation, electricity costs will rise, creating economic and political challenges.
“The base load capacity for Alberta is not going to sustain a lot of gigawatts of power going to data centres, because the result is going to be that will drive up the price of electricity. And that doesn’t usually get you votes,” said Taylor.
Beyond power generation, regulatory delays and supply chain bottlenecks further complicate the transition. Large-scale projects require turbines, transformers, and substations — none of which are readily available.
While Alberta’s government has committed to expediting approvals, supply chain constraints will ultimately dictate the pace of progress.
To successfully position itself as a hub for data infrastructure, Alberta must take a proactive approach — aligning energy expansion, regulatory frameworks, and investment incentives to ensure sustainable growth.
A call to action: Seizing the moment
The demand for compute power is growing rapidly. AI, big data, and cloud computing are reshaping industries, and Alberta has a rare opportunity to become a key player. The choice is clear: continue exporting raw energy or transition toward a higher-value, future-oriented strategy by turning that energy into compute.
Akbar Nurlybayev, who has worked extensively in AI infrastructure development, emphasized the urgency of this shift. If Alberta moves from exporting gas to exporting compute, it won’t just preserve its economic relevance — it will multiply the value of its energy resources.
To make this vision a reality, Alberta must invest in power generation, fibre infrastructure, and policies that encourage data centre development. The province has the expertise and resources to make this transition, and momentum is already building.
With the right decisions today, Alberta can secure its place as a leader in the digital economy, creating new opportunities for innovation, investment, and long-term prosperity.
This article was created with the assistance of AI. Learn more about our AI ethics policy here.
