“We will not let anything happen that would compromise affordability or reliability, but we are confident that by being very proactive and thoughtful in designing this, we can unlock billions and billions of dollars of exciting investment that will create jobs and more tax revenues to fund public services while preserving a stable, reliable, and affordable grid,” said Nate Glubish, Alberta’s Minister of Technology and Innovation in an interview with Digital Journal.
As part of the province’s AI data centre strategy, the government is navigating the complexities of both off-grid and on-grid infrastructure to meet the needs of AI data centre developers while maintaining energy stability for Albertans.
In collaboration with Infrastructure Minister Nathan Neudorf, Glubish said Alberta’s government is working to modernize regulations and establish clear guidelines for grid-connected projects.
The strategy’s emphasis on thoughtful planning reflects the province’s dual priorities of attracting investment and ensuring that the energy grid remains sustainable and beneficial for residents.
What do on-grid and off-grid infrastructure mean for data centres?
At the heart of Alberta’s new AI data centre strategy is the recognition that both off-grid and on-grid infrastructure play pivotal roles in supporting the province’s ambitions to become a leader in AI-powered innovation.
Off-grid data centres operate independently of the main power grid, relying instead on dedicated power sources such as natural gas generators or renewable energy installations.
This approach provides developers with greater control over their energy supply, eliminates strain on the existing grid, and often results in faster deployment timelines.
On-grid data centres, on the other hand, connect directly to the existing energy grid, drawing power from centralized systems that serve homes, businesses, and industries.
While this approach allows for scalability and integration into broader energy strategies, it also requires careful planning to avoid overloading the grid or causing disruptions.
Both models have unique implications for energy systems.
Off-grid solutions allow developers to bypass potential grid bottlenecks, while on-grid options support better utilization of existing energy infrastructure. Together, they form a complementary framework that Alberta aims to leverage in its AI data centre strategy.
For Alberta, off-grid infrastructure offers an immediate path to attracting investments without risking energy stability for residents. Alberta’s on-grid data centres will connect to regions that have surplus capacity.
Off-grid solutions are the focus for now, with the government leveraging Alberta’s abundant natural gas resources to power standalone facilities quickly.
According to Glubish, this approach minimizes risks to grid reliability and affordability, making it the ideal starting point for early projects.
“Off-grid is something we’re ready to move on right now, but we know there’s a role to play for grid-connected infrastructure,” Glubish said. “We just need to work with Minister Neudorf on fine-tuning that process a bit so that we can give people clear direction and guidelines to say if we follow steps one, two, three, we know that the result is going to be something predictable.”
Glubish also outlined plans for integrating AI data centres into Alberta’s existing grid where appropriate.
By targeting areas of the grid with excess capacity, such as regions with surplus power that isn’t currently being utilized, the government sees opportunities to bring stability and efficiency to the overall system.
Glubish noted that this proactive approach can not only support the data centre industry but also enhance affordability for all grid users by better balancing supply and demand.
A blueprint for AI-driven growth
Alberta’s dual-track approach of prioritizing off-grid solutions while planning for grid-connected infrastructure is a cornerstone of its AI data centre strategy. By tailoring energy solutions to the needs of developers, the province is positioning itself as a flexible and forward-thinking destination for data centre investment.
In a broader sense, the strategy aligns with Alberta’s strengths: its energy resources, favourable climate, and business-friendly policies.
But it’s not just about meeting today’s demands. By addressing both immediate and future energy needs, Alberta is preparing for a future where AI infrastructure will be central to global industries and everyday life.
The stakes are high, but so is the opportunity.
As global demand for AI-driven infrastructure accelerates, Alberta’s navigation of these challenges could serve as a model for other regions.
With billions of dollars in potential investment at play, Alberta’s focus on balancing innovation with energy stability may not only attract global tech giants but also redefine its role in the evolving tech economy.
This article was created with the assistance of AI. Learn more about our AI ethics policy here.
