Alberta pitches cheap gas to lure data centers

Alberta is marketing its cheap natural gas reserves to tech companies looking to build data centers for artificial intelligence, a pitch that conflicts with Ottawa's commitment to powering the AI boom with clean energy.

The province boasts advantages beyond fossil fuels: a cooler climate reduces cooling costs, available land is plentiful, and data centers could absorb natural gas that's been oversupplied for years. Alberta Technology Minister Nate Glubish has made multiple Silicon Valley trips since 2024 to court tech giants with the natural gas pitch. The province aims to attract C$100 billion in data center investment.

But nearly 100 hyperscale data centers—facilities requiring at least 50 megawatts of electricity—are planned across Canada, and 90 per cent of those are headed to Alberta. The province's electricity grid has an emissions intensity almost five times the national average, according to York University research. Alberta currently generates 60 per cent of its power from natural gas.

Prime Minister Mark Carney's June 4 AI strategy emphasized that Canadian data centers will run on "some of the cleanest power in the world," noting that more than 83 per cent of the country's grid comes from renewables and low-emission sources. Julia Sawatzky, a doctor with Canadian Physicians for the Environment, said the gap between stated goals and on-the-ground reality warrants close attention. "The way this AI data strategy might actually roll out is cause for all of us to really pay attention," she said.