Alberta Offers Enormous Advantages for AI Data Centres – Yogi Schulz

By Yogi Schulz

Alberta offers significant advantages compared to other jurisdictions in the competitive race to attract AI data centres. Alberta Premier Danielle Smith clearly understands the opportunity. She has charged Affordability and Utilities Minister Nathan Neudorf, Technology and Innovation Minister Nate Glubish and Finance Minister Nate Horner to complete and publicly announce the province’s AI data centre attraction strategy. Please lobby your Member of the Legislative Assembly to express your support for realizing this economic development opportunity.

How big is the opportunity?

Amazon, Alphabet, Meta, and Microsoft are investing hundreds of billions in AI data centers. Their 2025 capital expenditures are expected to total roughly $370 billion, and they anticipate this number will continue to rise in 2026. Smaller AI software companies, cloud service providers, and their suppliers are also making multi-billion-dollar investments. Some commentators are projecting that the AI boom will trigger trillions of dollars in capital investment.

Source: Big tech 2025 capex may hit $200 billion as gen-AI demand booms, Bloomberg Intelligence, October 4, 2024

In a recent call with analysts, Bernstein analyst Mark Moerdler asked whether Microsoft was spending into a bubble. Chief Financial Officer Amy Hood responded that AI-related demand still outpaces Microsoft’s spending. “I thought we were going to catch up. We are not,” she said.

Here’s a summary of the advantages that attract AI data centres to Alberta. Turning these advantages into reality can bring prosperity to all Albertans.

Alberta natural gas

Alberta has extensive natural gas reserves. The Alberta Energy Regulator’s updated natural gas reserves for 2025 have nearly doubled Alberta’s natural gas reserves to 130 trillion cubic feet, moving Canada from 15^th to 9^th place globally among producing nations. The advantage is that AI data centre proponents will have access to cheap, reliable natural gas for electricity generation for decades to come.

Source: Alberta Energy Outlook (ST98), AER, March 2025

Source: Alberta Energy Outlook (ST98), AER, March 2025

Alberta electricity

Alberta is the only province with investor-owned electricity generation and transmission. The advantage is that AI data centre proponents don’t have to deal with slow-moving government-owned monopolies to purchase electricity and attach their data centres to the electricity distribution grid.

Source: Varcoe: Threat of system shock remains for Alberta electricity market, with ‘hurricane brewing’ amid current calm, Calgary Herald, March 28, 2025

The Alberta government announced that it will fast-track AI data centre projects that include “bring your own power” generation projects. Many AI data centre proponents are happy to make that investment because it will give them:

• The high 24/7/365 availability they need.
• Control over energy costs.
• Compressed permitting and construction timelines.

The “bring your own power” approach also addresses the consumer concern about the potential impact on electricity prices that an AI data centre might have.

Alberta infrastructure

Alberta operates a well-developed infrastructure consisting of:

• Excellent roads.
• Widely available high-speed telecom.
• Many airports, some with excellent international connections.
• Low road congestion compared to most other jurisdictions.
• Lots of cheap land, unlike parts of Ontario, Quebec and the Lower Mainland.
• Reliable utilities.

The advantage is that AI data centre proponents don’t have to build their own infrastructure before they can start an AI data centre.

Alberta business environment

Alberta operates a business-friendly environment consisting of:

• A pro-business, pro-investment government attitude, unlike some other provinces.
• A well-defined, predictable regulatory environment.
• An entrepreneurial business community.
• A pro-economic growth mindset among Albertans.
• Modest business taxes.

Source: Economic Intelligence Unit, April 18, 2023

The advantage of the Alberta business environment is that proponents of AI data centres are welcomed, thereby avoiding the risks and impediments found in other jurisdictions.

The Alberta advantage

The many Alberta advantages compared to other jurisdictions that are competing against Alberta for AI data centres include:

• Presence of multiple, credible post-secondary education institutions.
• A significant population with advanced degrees.
• A substantial community of experienced information technology professionals.
• Close to the USA and in an easily managed time zone.
• The rule of law.
• A culture of respect and acceptance.
• Use of the English language with few accents.
• Proximity to many outdoor amenities, such as the Rocky Mountains.
• A well-functioning province with reliable utilities, superior transportation alternatives, clean air, affordable schools, and low crime.
• Immediate access to superior health care.
• Affordable housing and land prices compared to other major cities.
• Availability of first-class office space at a low rental cost.
• Availability of a wide range of cultural amenities.

Source: Economic Intelligence Unit, December 14, 2023

The benefits of the Alberta advantage for the staff of AI data centre proponents are the high livability values.

Alberta’s superior natural gas

Natural gas customers, including AI data centres, prefer to buy from Alberta because of our:

• High ESG rating, including low GHG emissions.
• Competitive prices.
• Reliable delivery performance.
• Predictable regulatory framework.
• Rule of law to resolve disputes.

Source: Canada’s Oil Industry Leads the World in ESG – But What Does That Mean?, November 4, 2021, EnergyNow Media

Superior natural gas enables AI data centre proponents to demonstrate their environmental consciousness.

Alberta climate

The advantage of the colder climate and ample water resources in Northern Alberta is that AI data centre proponents can reduce their cooling costs.

Alberta faces a critical decision window. Microsoft, Amazon, Meta and others are committing hundreds of billions to building AI data centres. Jurisdictions that move the fastest on permitting, land assembly, and electricity infrastructure will capture the first wave of investment. Alberta’s multiple advantages, including low-cost energy, private electricity markets, abundant land, and regulatory predictability, position it to be a first-tier competitor. Will policymakers execute the attraction strategy at the speed these tech giants demand? Jurisdictions that hesitate will find themselves competing for second-tier projects within an estimated 18 months.

---

Yogi Schulz has over 40 years of experience in information technology in various industries. He writes for Engineering.com, EnergyNow.ca, EnergyNow.com and other trade publications. Yogi works extensively in the petroleum industry to select and implement financial, production revenue accounting, land & contracts, and geotechnical systems. He manages projects that arise from changes in business requirements, the need to leverage technology opportunities, and mergers. His specialties include IT strategy, web strategy, and systems project management.

Share This:

---

More News Articles