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Data centres, rising demand, and Alberta’s energy bills

By David Pick-up and Kari Hyde, Pembina Institute

Canada needs more electricity — fast. In part, this is due to the projected growth of data centres that can power artificial intelligence and the increasing demands of our digital services. Both the federal and Alberta governments see data centre development as a compelling opportunity to attract investment and position Canada to benefit from the growing role of AI in areas ranging from health and research, to productivity and innovation. At the same time, policymakers are increasingly focused on building Canadian data sovereignty and ensuring appropriate protections are in place as the technology continues to evolve.

Yet, at the heart of the increasing integration of AI into our lives is an important question: how can we power data centres without driving up energy bills, driving up harmful emissions or putting too much pressure on the grid?

This blog explores what the challenge looks like in Alberta’s natural gas–reliant grid and what the expansion of data centres could mean for affordability in the years to come.

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