Alberta is positioning itself as Canada’s leading hub for artificial intelligence (AI) data centres, actively courting investment in these energy-intensive facilities. The province’s abundant natural gas resources and existing infrastructure make it an attractive option for tech companies seeking reliable and cost-effective power sources.
Cities and towns of all sizes in the province are getting involved in this growth, with Fort McMurray, Grande Prairie, Pincher Creek, and Fox Creek recently being named in announcements. These smaller centres are seeing an increasing number of development opportunities due to the availability of affordable power, favourable climates, and strategic locations ideal for large-scale data centre projects.
Alberta’s Growing Appeal as a Data Centre Hub
Alberta recently unveiled a roadmap to attract $100 billion in investment in data centres over the next five years. While other regions are also pursuing such developments, Alberta’s competitive energy prices, favourable tax incentives, and growing technology sector make it a compelling destination for AI data centre investment.
Data centres, which house the servers and storage systems essential for digital operations, require substantial electricity to function. Alberta’s electricity grid, primarily powered by natural gas, offers a stable and affordable energy supply. The provincial government is leveraging this advantage to attract tech giants and AI firms looking to expand their operations and land owners and real estate developers to locate these operations.
Alberta’s Technology Minister Nate Glubish has emphasized the province’s potential, noting that, “Alberta should be a destination of choice for this investment. A realistic target for us would be, over the next five years, to have secured $100 billion or more of investment across a half dozen projects.”
Glubish also pointed to the significant economic benefits, including the creation of thousands of technology jobs and the rising demand for natural gas to power these facilities.
Prime Locations for AI Data Centres: Fort McMurray and Beyond
In Fort McMurray, the Prairie Creek Business Park (PCBP) has begun marketing itself as a prime location for AI data centre development. The 1,000-acre site, located near the local airport, offers 400 acres of cleared land ready for construction. The site is equipped with direct access to high-speed fiber optics and a reliable power infrastructure, complemented by Alberta’s cool climate, which reduces cooling costs. The province’s competitive energy pricing, favourable tax incentives, and the skilled workforce available locally make PCBP an attractive location for cutting-edge data centre projects.
Kevin Krawchuk, a Principal with the PCBP project, expressed his group’s enthusiasm for the opportunity data centres offer right now. “The land we have is ideal for a data centre, so we’re now seeking out government representatives and project developers to assess the fit. It’s exciting to see such an opportunity for Fort McMurray in particular. We’re ready and motivated to see how we can provide the footprint along with the basic infrastructure for a data centre installation.”
This optimism comes at the same time developments rapidly continue in the AI space. The unveiling of DeepSeek’s new AI chatbot in late January has reshaped perceptions of U.S. dominance in the sector, with the Chinese company claiming its model performs on par with previous models at significantly lower costs. This news holds particular relevance for Alberta, which has made it clear it wants to be a destination of choice for AI data centres in North America.
In other moves that further underscore Alberta’s appeal, Gryphon Digital Mining announced plans earlier in January to develop an AI data centre at an 850-acre site in Pincher Creek in southern Alberta. Powered by natural gas, the site will feature access to a grid connection, high-speed fiber connections, and carbon capture and sequestration capabilities. According to Gryphon’s CEO, Steve Gutterman, the combination of these resources makes such a location ideally suited to large-scale AI computing.
And in December 2024, O’Leary Ventures announced plans to develop an AI data centre industrial park in Grande Prairie. The Kevin O’Leary backed company has signed a letter of intent to purchase land for the project, marking yet another indication of the province’s growing prominence as a location for data centre investment.
As the province continues to position itself as a prime place for AI data centres, it will also be looking to balance the economic benefits of attracting tech investment with the need to address environmental concerns. The province’s proactive approach and strategic initiatives aim to establish it as a leader in the growing AI data centre industry.
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