Destination of Choice for Data Centres
Alberta is becoming a global leader in AI-driven data centre operations
Alberta is one of North America’s most competitive destinations for data centre investment. The province combines world-class fiber connectivity through Alberta’s SuperNet with abundant, reliable water resources.
Alberta’s deregulated electricity market gives operators the flexibility to source power competitively, including renewable and low-carbon options, while leveraging the province and private market’s significant generation capacity.
Add to that a cold climate for natural cooling, low corporate taxes, abundant natural resources, and a streamlined regulatory environment—and you have a jurisdiction built for efficiency and growth. Backed by the Alberta Government’s AI-focused data centre strategy, Alberta stands out as the premier location to build and scale next-generation data centres.
Everything is Growing in Alberta
Fortinet
The optimum conditions for data centres revealed in new report
Published: August 15, 2025
Selecting a data centre site has multiple considerations, from land and climate to energy demands. A special report by Invest Alberta details the ideal conditions and requirements for a successful data centre.
Recent Data Centre Investments in Alberta
ABUNDANT NATURAL RESOURCES
The province’s energy mix includes a strong portfolio of natural gas and renewables, providing data centres with flexible options to meet their power needs sustainably and affordably. The deregulated electricity market in Alberta allows for advantageous negotiations with natural gas and renewable energy providers for power purchase agreements (PPAs), ensuring competitive pricing and reliable energy sources.
Cogeneration uses natural gas to generate both electricity and useful heat energy, which can be utilized for cooling data centres through absorption chillers. This method allows data centres to operate independently of the electrical grid and even sell excess energy back to it. Most planned data centre projects in Alberta are adopting this approach to generate their own power on-site.
A DEREGULATED POWER MARKET
Alberta is home to Canada’s only deregulated, energy-only power market which enables AI and data centre companies access to energy through virtual power purchase agreements (VPPAs).
VPPAs can be negotiated directly with renewable and traditional energy developers to achieve sustainability goals while creating long-term stability and certainty on the price of power.
A LAND OF OPPORTUNITIES
Alberta offers affordable and available industrial land, with the potential for expedited rezoning from other designations to industrial use. Lease prices of industrial properties are 20% lower in Alberta than the national average.
The province has multiple industrial zones, providing opportunities in regions with accessibility to carbon hubs, gas pipelines, fiber optics, water access, and electricity infrastructure.
A RELIABLE FRESHWATER SOURCE
Alberta offers a robust water supply, with numerous sites capable of providing sufficient water for data centres with capacities up to 1,000 MW. The province ensures high availability and reliable access to freshwater, thanks to its well-managed water resources. This consistent access to freshwater supports the efficient performance of data centres by meeting their cooling and operational needs.
Additionally, Alberta experiences low competition for water resources in many regions, allowing data centres to secure the necessary water supply without facing significant restrictions. This enables smoother operations and potential expansion for data centres.
Alberta is poised to become a global leader in AI data centre operations due to its natural resources, competitive tax rates, and business-friendly regulatory environment.
Calgary, Alberta
Photo Credit: Thiago Terleski on Unsplash
Talent & Productivity
Alberta’s tech sector is supported by a diverse, highly educated workforce and top universities
6th
Canada ranks sixth in the world for developer talent
64.8%
Completed a post-secondary program; Alberta has the most professional engineers per capita in North America.
Youngest Province in Canada
Alberta is Canada’s youngest province, and younger than over 20 US states, with average age of 39, including over 200,000 students currently enrolled in post-secondary institutions.
Top Destination for Migration
High quality of life scores, low cost of living, and an abundance of economic opportunity, Alberta is an attractive destination for many new immigrants.
INFRASTRUCTURE
As an energy powerhouse, Alberta creates a low risk opportunity for the future of AI and data centres
1st
DCByte ranked Alberta as the number one hypergrowth market for data centres in 2023/24 in the Americas
1,462
Data processing and hosting establishments in Alberta
$0.070/kWh
Average USD price of electricity in Alberta (2025)
Very Low Probability
Alberta has a very low probability of structurally damaging earthquakes in the next 50 years and minimal storm events compared to the US
ECONOMICALLY STRONG
As the most entrepreneurial province in Canada, Alberta’s fast-paced business environment turn ideas into reality
Supportive Framework
The Alberta Electric System Operator (AESO) acknowledges the significance of data centre developments and is dedicated to collaborating with project proponents
Streamlined Approvals
Alberta’s designated Industrial Zones, like the Alberta Industrial Heartland, offer fast-tracked regulatory approvals and shared access to vital infrastructure, ensuring supportive conditions for new data centres.
Red Tape Reduction
The Alberta Utilities Commission (AUC) has improved regulatory efficiency, cutting application review times by an average of 30% since 2020 to facilitate data centre projects.
Alberta Ecosystem: Industry Innovators
amii
Alberta’s early investment into AI since 2002 led to the creation of Amii, a renowned AI leader. The private sector also believes in Amii, with Google Canada affording $1.1M in grant funding.
AltaML
AltaML is an innovative team in the Machine Learning space and is currently one of Canada’s most successful startups.
CoolIT Systems
Specializes in scalable liquid cooling solutions and has worked with some of the world’s most demanding data centres.
Denvr Dataworks
Transforms raw data into actionable insights using advanced analytics and machine learning.
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Downtown Calgary
There are over 200 art galleries, parks, public art, historical buildings, and shopping malls in the downtown core.