Alberta is positioning itself as a major destination for artificial intelligence (AI) data centres by promoting its abundant and low-cost natural gas resources, a strategy that could conflict with Canada’s broader ambition to power future digital infrastructure with cleaner energy sources.
The western Canadian province, which produces roughly 60 per cent of the country’s natural gas, is seeking to capitalise on the rapidly growing demand for computing power driven by AI technologies. Provincial officials argue that Alberta offers a combination of affordable energy, cooler temperatures that reduce cooling costs, and ample land availability - factors that can make large-scale data centre operations more economical than in many parts of the United States.
Alberta Technology Minister Nate Glubish said the province aims to attract up to C$100 billion in data centre investment, describing the facilities as “digital pipelines” that can create new demand for Alberta’s natural gas industry. He has reportedly made several visits to Silicon Valley since 2024 to promote Alberta as a destination for energy-intensive technology projects.
The initiative comes as Canadian natural gas producers continue to face oversupply and weak prices. Industry leaders see AI-driven data centres as a potential long-term market capable of absorbing excess production and supporting economic growth.
However, Alberta’s strategy has raised concerns among environmental advocates and policy experts. Prime Minister Mark Carney has emphasised that Canada’s AI expansion should be powered by some of the cleanest electricity in the world, with the federal government highlighting that more than 83 per cent of the country’s power generation comes from renewable or low-emission sources.
Research indicates that nearly 100 hyperscale data centres are being planned across Canada, with about 90 per cent proposed for Alberta. Critics note that Alberta’s electricity grid remains heavily dependent on natural gas and has a significantly higher emissions intensity than the national average.
While some technology companies continue to pursue renewable energy projects in Alberta, provincial officials argue that businesses are currently prioritising reliable and rapidly available power connections over carbon considerations. They also point to future carbon capture technologies as a way to reduce emissions from gas-fired electricity generation.
As Canada seeks to expand its AI sector, Alberta’s approach has sparked a broader debate over whether economic competitiveness and energy security can be balanced with the country’s long-term climate commitments.
