Alberta Follows Up Its Artificial Intelligence Data Centre Strategy with a Levy Framework

Alberta is introducing a levy framework for data centres powering artificial intelligence technologies, the Province recently announced.

Effective by the end of 2026, a 2% levy on computer hardware will apply to grid-connected data centres of 75 megawatts or greater, according to a statement from Alberta.

The levy will be fully offset against provincial corporate income taxes, the government says. Once a data centre becomes profitable and pays corporate income tax in Alberta, the levy will not result in any additional tax burden.

Data centres of 75MW or greater will be recognized as designated industrial properties, with property values assessed by the province. Land and buildings associated with data centres will be subject to municipal taxation.

The framework was forged through a six-week consultation with industry stakeholders, according to Nate Glubish, Minister of Technology and Innovation.

“Alberta’s government has a duty to ensure Albertans receive a fair deal from data centre investments,” the provincial minister remarked. “This approach strikes a balance that we believe is fair to industry and Albertans, while protecting Alberta’s competitive advantage.”

Glubish added that the Alberta government is also exploring other options. This includes a payment in lieu of taxes program that would allow companies to make predictable annual payments instead of fluctuating levy amounts, as well as a deferral program to ease cash-flow pressures during construction and early years of operation.

“After working closely with industry, we’re introducing a fair, predictable levy that ensures data centres pay their share for the infrastructure and services that support them,” commented Nate Horner, Minister of Finance.

“This approach provides stability for businesses while generating new revenue to support Alberta’s future,” he posits.

The decision builds on the Alberta Artificial Intelligence Data Centre Strategy, introduced in 2024.

The strategy aims to capture a larger share of the global AI data centre market, which is expected to exceed $820 billion by 2030 as Alberta becomes a data centre powerhouse within Canada.

However, the Province’s tactics have not gone uncriticized.