The Alberta government has announced a new levy framework for large-scale data centres in an effort to attract spending, create jobs and ensure Albertans benefit from the sector’s rapid growth.Starting December 31, 2026, a 2% levy on computer hardware will apply to grid-connected data centres of 75 megawatts or greater. The framework was shaped following a six-week consultation with industry stakeholders and, according to the province, balances competitiveness with fairness.To protect Alberta’s tax advantage, the levy will be fully offset against provincial corporate income taxes, meaning once a data centre becomes profitable and pays corporate tax in Alberta, the levy will not add any additional burden..“Alberta’s government has a duty to ensure Albertans receive a fair deal from data centre spending,” said Nate Glubish, Minister of Technology and Innovation. “This approach strikes a balance that we believe is fair to industry and Albertans, while protecting Alberta's competitive advantage.”The province is also exploring a payment in lieu of taxes option that would allow companies to make predictable annual payments instead of fluctuating levy amounts, as well as a deferral program to ease cash-flow pressures during construction and early operations.Finance Minister Nate Horner said the framework ensures data centres “pay their share for the infrastructure and services that support them” while giving businesses predictability..To keep taxation consistent across Alberta, data centres of 75 MW or greater will be recognized as designated industrial properties, with values assessed by the province.While land and buildings will remain subject to municipal taxation, municipalities will be allowed to offer property tax incentives or deferrals for up to 15 years.The new policy builds on the Alberta Artificial Intelligence Data Centre Strategy introduced in 2024, which pitched Alberta as a destination of choice for AI infrastructure. The province points to advantages such as natural cooling, low-cost electricity, and a competitive tax system as reasons global companies may choose to build here.Global demand for data centre capacity is expected to more than triple by 2030, with the AI-driven market projected to exceed $820 billion. Energy demand from AI-related data centres is forecast to rise by 160% over the same period.
