Power, Policy, and Molecules: Alberta’s Place in the Global Data Center Race

The Week That Was: February 14-21, 2025

Feb 23, 2025

NOTE: “The Week That Was” is a recap of ideas shared over the last seven days.

What got my attention in 𝙏𝙝𝙚 𝙒𝙚𝙚𝙠 𝙏𝙝𝙖𝙩 𝙒𝙖𝙨?

"Just as energy is the basis of life itself...and ideas the source of innovation… so is innovation the vital spark...of all human change, improvement and progress". Sometimes we need a reminder that beneath it all is an inspiring story of the role of energy in innovation, and the importance of innovation to improve the human condition.
With ~10.9GW of proposed new data center load on the AESO’s Connection Project List, against all-time peak load of ~12.4 GW, data centers have the potential to reshape Alberta’s electrical system and it’s oil and gas focused energy industry. However, this is still small potatoes relative to Dominion’s 40 GW queue in Virginia. And it makes me wonder how competitive is Alberta really in the global race to attract these new large loads?
What makes a state or province attractive for data center development? It comes down to “endowments”. A good example of an “endowment” from Alberta endowment is the province’s SuperNet, a 13,000 km fiber-optic and wireless network connecting 429 communities.
Taxes are boring. What about tax breaks for an industry amidst a boom (not a nascent new energy technology)? 36/50 states surveyed by Husch Blackwell have a form of tax incentives for new data center development.
Everyone is focused on power for data centers, but “molecules” might make the difference in attracting new projects. Are regions with CCUS and hydrogen infrastructure are positioning themselves as more attractive to energy-intensive industries like data centers?