DATA CENTRE DOUBLE DOWN: Alberta presses ahead with AI strategy as global projects falter

CALGARY — As major AI data centre projects in both the US and the UK face delays, cancellations and rising costs, Alberta is actively promoting its AI strategy to Ottawa and positioning itself as a destination for investment.Speaking in the Alberta legislature Monday, Premier Danielle Smith argued Alberta has struck a balance between attracting major AI projects and protecting Albertans from rising utility costs.“I can tell you my ministers have done a tremendous job of creating a policy framework that is not only going to attract investment, but is also going to ensure that electricity consumers are protected,” Smith said in Question Period.“We've told [investors], ‘yes, come and build your data centre, but build your own power so that you can power yourself and have the backup. And if you happen to build excess power, we would like to have that power sold into the grid."However, Alberta NDP Leader Naheed Nenshi raised concerns about the viability of large-scale AI data centre expansion, citing an article from Bloomberg indicating that nearly half of planned data centres in the US this year are expected to be delayed or cancelled, in part due to shortages of critical electrical equipment such as transformers and batteries.He also argued that many of the components required to build the facilities are sourced from China and questioned the economic benefits of these types of projects.The debate comes as a major proposed data centre project in Alberta moves forward despite several regulatory setbacks..CBC News recently reported that Synapse Real Estate Corp. has reapplied to build a large natural gas-powered data centre near Olds, AB, roughly 85 kilometres north of Calgary.The proposal includes a 1.4-gigawatt power plant — enough to meet Edmonton’s daily electricity demand — and 10 separate 100-megawatt data centres, which the company says would make it the largest project of its kind in Canada.The Alberta Utilities Commission previously closed the company’s first application in March, citing deficiencies in public consultation and documentation.Now, regulators say the new application, submitted April 3, is under review.Another project — the Wonder Valley AI Data Centre Park — located south of Grande Prairie and proposed by celebrity investor Kevin O’Leary has also courted controversy recently, as the provincial government has said it will not be conducting an environmental impact assessment for the proposal after review from an independent approvals officer who deemed it exempt from the assessment due to its proposed use of standard power and water systems.However, permits are still pending before construction can begin..In a statement to CBC, the Alberta Ministry of Environment and Protected Areas said the project “must provide detailed technical assessments on impacts to air, land and water, and show the project can be built and operated safely. No permit is granted unless those requirements are satisfied.”Red tape has also recently played a significant role globally in stalling data centres.Last week, BBC News reported OpenAI had paused a multi-billion-pound data centre project in the UK, citing concerns over high energy costs and regulatory issues.The project, known as Stargate UK, was originally part of a broader £31-billion tech investment push aimed at positioning the UK as an AI leader.OpenAI has said it will move forward only when “the right conditions” exist to support long-term infrastructure investment, particularly around energy pricing and regulation.Smith has previously stated her government intends to move quickly to capitalize on growing global demand for AI infrastructure, hoping to attract $100 billion in investment by 2030.

DATA CENTRE DOUBLE DOWN: Alberta presses ahead with AI strategy as global projects falter

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