Alberta’s Longtime Rule for AI Data Centers Mirrors Trump Proposal

Albertans may have experienced a sense of familiarity when U.S. President Donald Trump outlined his plans for AI data centres during last week’s state of the union address. His call for major tech companies to provide their own power needs mirrors a strategy Alberta’s UCP government has been championing.

Alberta aims to attract over $100 billion in investments for AI data centres, capitalizing on its colder climate, vast real estate, and deregulated electricity market. The province’s approach to data centre development and its potential impact on electricity costs are being compared to developments in the United States.

A Phased Approach

Faced with high demand, the Alberta Electric System Operator (AESO) announced last June that it could spare 1,200 megawatts for large load data centre projects without compromising grid reliability. This represents a phased approach, unlike the practices in several U.S. wholesale electricity markets where data centres connect quickly, potentially leading to concerns about wholesale prices and reliability. American independent power consultant Frank Felder noted that regional transmission organizations and independent system operators in the U.S. have not been taking a phased approach.

According to the Pew Research Center, U.S. data centres consumed over four per cent of the country’s total electricity in 2024, roughly equivalent to the annual electricity demand of Pakistan. Electricity consumption by U.S. data centres is projected to grow by 133 per cent by 2030.

Alberta’s AI data centre buildout is relatively new compared to the U.S. While several large projects have been proposed, including a complex in Olds, Alta., many are in early stages of approval or construction. University of Alberta professor Ryan Li described Alberta’s approach as “diligent,” emphasizing the AESO’s expertise in grid management.

Electricity Prices

During his state of the union address, Trump introduced a “ratepayer protection pledge” to shift AI-driven electricity costs from consumers to technology companies. The increasing electricity demand from AI data centres has led to rising utility costs across the U.S., impacting residents in at least 41 states. A 2025 report from the Center for American Progress found community opposition to data centres is accelerating, with an estimated $98 billion in U.S. projects blocked or delayed.

Alberta’s Utilities Statutes Amendment Act, passed last December, allows AI data centre projects to generate their own power and requires developers to pay for grid upgrades. Affordability and Utilities Minister Nathan Neudorf stated that Alberta’s proactive approach provides data centre proponents with cost stability and competitiveness.

Grid Reliability

The North American Electric Reliability Corporation (NERC) found that over half of the regions it assessed face resource challenges over the next 10 years, largely due to data centre growth. PJM Interconnection, the largest U.S. power grid operator, is at an “elevated risk” for power shortfalls over the next two years and a “high risk” from 2029 onwards.

Canada also faces grid reliability challenges due to increased electrification, climate change, and aging infrastructure. While AESO’s phased approach aims to maintain reliability, Li cautioned that the rapid growth of AI data centres could outpace grid development. He emphasized the importance of maintaining Alberta’s grid stability due to its relatively independent nature and limited connections to other jurisdictions.