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While AI and data centers dominate global conversations, few outside Alberta fully appreciate the province’s unique advantages for AI data center operators, colocation providers, and infrastructure developers.
Consider these key statistics:
- Data center power demand is expected to grow more than thirtyfold by 2035.
- The U.S. Department of Energy estimates that data centers could consume up to 12% of total U.S. electricity by 2028—rising from 4.4% today to between 325 and 580 TWh.
- Over 40% of energy used in computation is dedicated to cooling.
- Data centers must maintain uptime levels of 99.95% to 99.99%.
- Reliable, affordable power is essential for data center operations.
Power reliability is critical for data centers. Alberta’s energy sector has cultivated deep technical expertise, including in “behind-the-fence” backup power generation. While high demand has led to long lead times for new equipment, solutions such as upgraded and retrofitted systems can be deployed quickly to meet urgent needs.
Why Alberta?
Alberta is rapidly emerging as a top destination for new data centers, thanks to its:
- Abundant land and energy capacity
- Strong data connectivity
- Favorable regulatory environment
- Cool climate and water resources
- Geological and geopolitical stability
Climate and Stability: Alberta’s cold climate is a natural asset—especially when nearly half of a data center’s energy use goes toward cooling. Access to major rivers also supports evaporative cooling during warmer months.
Geographically, Alberta is free from major natural disasters like tsunamis, large earthquakes, hurricanes, and ice storms. Politically, Canada remains a stable and reliable partner on the global stage.
Data Connectivity: Alberta’s oil and gas industry has laid the groundwork for robust digital infrastructure. The province boasts extensive fiber trunk lines, broadband, and cellular coverage—more comprehensive than any other Canadian province.
*map courtesy of CRTC Canada website
Energy Capacity and Regulatory Environment: As of 2024, Alberta’s grid-connected power generation capacity reached 23,122 MW. While natural gas remains the primary source, Alberta phased out coal-fired power in June 2024 and has committed to adding 5,000 MW of renewable energy by 2030.
Natural gas, produced locally and in nearby northeastern B.C., offers reliable, fast-spooling power that complements intermittent renewable sources like wind and solar.
Alberta’s deregulated electricity market allows for off-grid generation, enabling private power deals between generators and companies. This flexibility makes Alberta especially attractive for data center development. Technology Minister Nate Glubish has expressed hopes of seeing $100 billion in AI data center construction over the next five years.
Nuclear energy is also gaining traction. A recent survey found that nearly 70% of Albertans support nuclear power. Energy Alberta has proposed a major nuclear facility in the Peace River region, featuring two to four 1,000 MW CANDU reactors—using fuel produced domestically in Canada.
Workforce Strength: Alberta’s energy sector has cultivated a highly skilled workforce. The province has the highest number of engineers per capita in Canada, offering the technical talent needed to support a growing data center industry.
Overcoming Equipment Delays with Used Solutions
Despite Alberta’s many advantages, one challenge remains: the availability of backup power generation equipment. With global demand outpacing supply, lead times for new generators, transformers, and electronics are long.
To meet immediate needs, many developers are turning to used equipment. These assets can be inspected, overhauled, and retrofitted to meet modern specifications—often much faster than waiting for new units. Equipment can be relocated from within Alberta, across Canada, or internationally.
However, sourcing and upgrading used equipment requires specialized expertise.
That’s where Tarco comes in. With over 25 years of experience in the energy industry, Tarco helps clients:
- Source the right equipment
- Assess functionality and condition
- Retrofit and upgrade systems
- Install and commission equipment on-site
As a local Alberta company, Tarco brings together a skilled team of engineers, technicians, and tradespeople. We’re proud to be part of the Alberta Advantage and look forward to helping power the future of data centers in our province.
Please contact us at [email protected] with any questions or visit our website at www.tarco.com
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