The Decibel Alberta’s AI push could come with a big energy price tag
May 21, 2025
Joe Castaldo, a business reporter with The Globe and Mail specializing in artificial intelligence, dives into Alberta's ambitious plan to become a data center hub. He discusses the significant rise in electricity demand tied to these centers, primarily fueled by natural gas, and the environmental implications. The conversation also navigates the balance between technological growth and sustainability, examining the challenges and opportunities presented by this data center boom in Alberta's energy landscape.
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Alberta’s AI Data Center Opportunity
- Alberta views AI data centers as a generational economic opportunity with benefits like tax revenue and job creation.
- Hosting AI infrastructure encourages wider AI adoption and potential productivity gains for the economy.
Off-grid Power for Data Centers
- Alberta wants data centers to generate their own electricity off-grid, mainly using natural gas.
- This approach aims to avoid grid instability and leverage Alberta's deregulated electricity market.
Potential Electricity Surge from AI Centers
- Proposed AI data center projects in Alberta request over 16,000 megawatts, more than the province’s current entire electricity use.
- If all are built, data centers could more than double Alberta's electricity consumption.