EDMONTON — After a decade of battling to get Alberta oil to market, the Government of Alberta is looking to diversify Alberta's economy by making Alberta a major AI data centre hub, and while some Albertans are worried about the venture, the UCP claims it solves a problem. Alberta's Minister of Technology and Innovation, Nate Glubish, claims a main question he hears from constituents is "Why don't we add more value to our raw materials before we ship them to other jurisdictions, and capture more of the value for the benefit of Albertans?" "That's a great question, and ultimately, that's what data centers are," said Glubish in an interview with the Western Standard. "They're basically a digital refinery." Though the idea may seem unconventional, Glubish claims data centres can take Alberta's natural gas, turn it into electricity, use it to fuel the technology, and then export the intelligence to global markets through fibre. "It's an economic diversification play," Glubish said. "It's an expansion of our traditional oil and gas sector, and it's going to create a ton of jobs here and a ton of revenues here to help fund critical services that Albertans rely on, like healthcare, education, and public safety." .However, while the UCP seem all-in on AI data centres, not every Albertan is on board with the plan. Individuals often raise concerns about the environmental, health and financial risks associated with AI data centres, largely because of troubled projects around North America.Glubish understands their concerns and believes they are justified, but believes many of the issues stemmed from failed due diligence, rushed projects, subsidies and bad deals. "We're doing it differently in Alberta," Glubish said. "We didn't want to be first. We wanted to be the smartest."In July, Rocky View County councillors passed a motion to temporarily pause new data centre proposals until after the county officials establish a framework and guidelines for such projects. Glubish said the council has good concerns, but the UCP have already established regulations to protect against their fears. "My goal is to work with Rocky View councillors and make sure that they have all the information they need to make well-informed decisions, and my commitment to Albertans is that we only want projects that are good for all Albertans, and that make sense and are responsibly developed," Glubish said. .A $13 billion, up to 1.8-gigawatt Meta Platforms data centre in Sturgeon County is one of the projects coming to Alberta.The project exemplifies Glubish's digital refinery idea, as the project will eventually be powered by a $4.6 billion natural gas pipeline built by Pembina and other private partners. However, some Sturgeon County residents are not on board with the project, as over 100 individuals gathered at the county office on Sunday to protest the project, citing concerns about the massive amount of water typically needed to cool the technology and the large amount of electricity required to power it. Meta and the UCP have attempted to calm concerns about water usage by assuring Albertans that the facility will run on a closed-loop liquid cooling system that reuses water after the pipes are initially filled. They claim the project will use less water annually than the average golf course. As for other projects, Glubish said businesses need a license to access water, and they do not get one without checks and balances. "Our priority as the government is to ensure that water is protected," Glubish said. "That citizens' access to water for drinking water and for the household use is protected, and nothing like a data centre like Meta's is going to in any way compromise that." .People have also expressed concerns about data centres draining Alberta's electrical supply and skyrocketing the energy rates for Albertans. Glubish said Alberta's "bring your own energy" requirements can offer some reassurance. "They're going to have to bring their own generation," Glubish said. "If they're going to move forward in Alberta, they have to pay their own way. They're going to have to pay for any connection fees into the grid. So, Albertans will not pay a dime for the electrical infrastructure required for data centers."Alberta's electrical grid operators have also calculated the amount of excess energy that can be allotted to AI data centres without impacting Albertans.Meta's is one of the projects that has secured a portion of the excess grid energy, as part of it will be operational prior to the completion of their private grid."We have a reputation of building big industrial things," Glubish said. "The Alberta industrial heartland is a great example of that with the petrochemical complex there. "All of those facilities use a lot of power. All of those go through the grid process, and we've been able to manage that for decades responsibly. That same management process will apply here.".However, the UCP is looking to provide additional security through a clause in future projects, which would state that AI data centres would be the first to lose their electric supply if there is a grid event. "Our commitment to Albertans is, again, we didn't want to be first," Glubish said. "We didn't want to compromise the grid. We didn't want to bring costs to Albertans." Despite the concerns and cautionary tales, the UCP believe Alberta is ready to welcome the AI data centre industry. "We are confident that we have done the homework to put forward the right protections that safeguard Albertans' interests, and we're not afraid to get out there and have that conversation with Albertans," Glubish said.
