The Government of Alberta introduced a strategy today to establish itself as North America’s premier destination for artificial intelligence (AI) data centres.
Titled Powering the Future of Artificial Intelligence, the strategy leverages Alberta’s energy resources, cold climate, and competitive tax environment to attract investment, accelerate economic diversification, and turn the province into a premier destination in North America for AI data centres.
Global demand for AI data centres is expected to triple by 2030, driven by the increasing use of machine learning, natural language processing, and other AI technologies.
Alberta’s plan aims to capitalize on this demand by offering a competitive environment for data centre developers while promoting economic growth and diversification across the province.
Why Alberta stands out in the race for AI infrastructure
Alberta’s strategy recognizes the unique advantages the province offers to AI data centre developers.
The strategy highlights these advantages, including its abundant natural gas reserves and competitive electricity market.
“We have virtually unlimited natural gas resources,” said Alberta’s Minister of Technology and Innovation, Nate Glubish, in an interview with Digital Journal. “We’re really good at converting it to power. We can do this at scale, and if we focus on off-grid infrastructure, we can do it fast.”
Read more: How Alberta aims to power AI data centres without risking energy stability
The strategy also notes Alberta’s cold climate as a natural asset for reducing cooling costs — a major operational expense for data centres. Cooler temperatures mean less reliance on energy-intensive cooling systems, cutting costs and boosting sustainability, which is a win-win for tech companies managing massive AI workloads.
Additionally, the province’s competitive corporate tax rates are positioned as a key draw for global tech companies.
Municipalities and rural areas across the province are identified as potential data centre locations, with the strategy citing large plots of available land and the ability to connect to Alberta’s fiber optic backbone.
Glubish shared that Alberta is already proactively assisting developers.
“We’re working with project proponents to say, ‘Tell us what your priorities are… and let us work backwards with everything we know about fiber, water infrastructure, and gas infrastructure.’”
The strategy’s three pillars
Alberta’s AI Data Centre Strategy is built on three core pillars, which the document outlines as critical to achieving its goals:
- Power capacity: The strategy emphasizes Alberta’s ability to provide scalable and reliable energy solutions through its natural gas reserves and renewable energy initiatives. It also highlights the integration of technologies like carbon capture to align with sustainability goals.
- Sustainable cooling: The strategy calls for leveraging Alberta’s cold climate to reduce operational costs and environmental impacts. It also encourages innovative cooling technologies, including systems that capture and reuse heat for secondary applications.
- Economic growth: Alberta aims to create jobs, drive tax revenues, and foster partnerships with municipalities and Indigenous communities as part of its economic diversification efforts.
Alberta’s AI data centre strategy reflects consultation with industry leaders, including AI data centre developers, power generators, and municipalities pursuing these projects.
The government highlights the broader economic benefits tied to the strategy, emphasizing that AI data centres act as economic growth engines while also supporting critical public services like healthcare and education. With the AI data centre market projected to more than double to $622 billion (USD) by 2030, Alberta is positioning itself as a leader in this fast-growing sector.
Streamlining the process with a concierge service
A cornerstone of the strategy is Alberta’s concierge service, which Glubish confirmed is already operational. Designed to eliminate guesswork and expedite development, the program connects developers with a dedicated team to simplify the regulatory process and create a streamlined path to approvals.
“We’re working with about a dozen different project proponents right now at various stages of development,” he said.
Glubish said the focus is on reducing uncertainty and expediting approvals.
“We’ve had some great success in helping to drastically accelerate the path through the existing regulatory framework,” he said. “Instead of people having to guess who they talk to, or where they go next, we already know all those answers.”
The concierge program is currently being supported by Glublish’s personnel who have been repurposed to support investor interest.
And unlike some other jurisdictions, Alberta’s strategy does not include financial incentives such as tax credits.
“We’re not going to do any tax credits. We’re not going to do any incentives. Time is money. We’re giving people the gift of time by focusing on streamlining the regulatory process and offering our concierge service to navigate the existing regulatory environment as quickly and with the greatest certainty possible. There’s no actual formal budget program for incentives, because we don’t believe it’s needed.”
A competitive landscape across Canada
Alberta’s bid for AI investment comes as other Canadian provinces are making strides in this sector.
In Quebec, Microsoft announced a $500 million (USD) investment in 2023 to expand its hyperscale cloud computing and AI infrastructure. This includes the construction of multiple data centres in L’Ancienne-Lorette, Donnacona, Saint-Augustin-de-Desmaures, and Lévis.
In addition, IBM shared plans earlier this year for a new Cloud Multizone Region (MZR) in Montreal, designed to enhance resiliency and compliance for AI-powered applications.
While Glubish could not confirm specific company investments in Alberta, he highlighted ongoing conversations with major tech players such as Google, Meta, Apple, Amazon, and Nvidia.
Collaboration with Indigenous communities
Collaboration with Indigenous communities is a central focus of Alberta’s AI Data Centre Strategy.
Aiming to align economic growth with reconciliation efforts, the Alberta Indigenous Opportunities Corporation (AIOC) is identified as a key mechanism for enabling Indigenous equity participation in data centre projects.
“We believe that partnership and prosperity is one of the single most valuable ways that we can work with First Nations to improve their quality of life,” Glubish said.
The AIOC provides loan guarantees to Indigenous communities interested in taking ownership stakes in qualifying projects, including data centres and their associated power-generation infrastructure.
The strategy further positions these partnerships as a way to bridge Alberta’s technology and energy sectors with Indigenous-led initiatives.
By encouraging developers to explore ways to involve Indigenous partners, the government aims to ensure these projects create both local benefits and broader reconciliation outcomes.
This framework not only opens the door for equity ownership but also enables Indigenous communities to participate in associated job creation, from construction to operations, fostering capacity building and workforce development.
Charting the course for Alberta’s AI future
While the initial focus is on off-grid solutions, Alberta’s strategy emphasizes a long-term vision for integrating grid-connected projects. The province plans to introduce additional regulatory clarity in early 2025, paving the way for broader opportunities.
“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… We just need to fine-tune that process,” Glubish explained.
Municipalities that have proactively prepared industrial zones are expected to be the first to benefit.
“Those municipalities are going to be the beneficiaries of some of these early projects,” Glubish said, pointing to a ripple effect that could inspire other communities to follow suit.
As global demand for AI infrastructure accelerates, Alberta’s AI data centre strategy seeks to position the province as a leader in this competitive space. By leveraging its energy resources, cold climate, and streamlined regulatory processes, Glubish says Alberta hopes to stand out as a destination of choice for global investors.
This is not just about attracting big names in tech — it’s about building a foundation for long-term economic resilience. With a focus on partnerships, clear priorities, and a pragmatic approach, Alberta is aiming to create a thriving AI ecosystem that benefits not only the global tech industry but also local communities across the province.
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