Maxim Power is positioned to supply datacenters, Crypto..Etc ByChris HoggPublishedNovember 13, 2024
Nate Glubish
Nate Glubish, Alberta's Minister of Technology and Innovation of Alberta, sits down with Digital Journal's Chris Hogg. - Photo by Jennifer Friesen, Digital Journal
“I’ve talked to all the major players, and they all have a plan on ESG, they all care about their environmental commitments, but they are also realists,” said Alberta’s Minister of Technology and Innovation, Nate Glubish. “They all know you cannot run a data centre on renewables. It is not physically possible.”
In an interview with Digital Journal during Calgary’s Innovation Week, Glubish spoke about Alberta’s ambitious push to attract data centre investments.
The province sees data centres as essential infrastructure for the digital age and is positioning itself to be a global hub, with its unique ability to supply reliable, high-capacity power for these energy-intensive facilities.
Why data centres matter, and why Alberta wants them
Data centres are the backbone of everything we do today. They store everything from company files to social media content, and they handle billions of daily transactions across the world.
The expansion of AI, cloud computing, and streaming services has only intensified demand.
Alberta wants to be a top choice for these projects, seizing an opportunity to diversify its economy and leverage its abundant energy resources.
Alberta’s edge, the minister said, is its vast energy potential and investor-friendly policies.
According to Glubish, the province’s regulatory system allows for faster approvals, especially for “off-grid, behind-the-fence” infrastructure, which is critical for data centres that can’t risk power interruptions.
Off-grid, behind-the-fence infrastructure refers to energy solutions where data centres are powered independently of the public electricity grid. These facilities generate their own power on-site or nearby using dedicated power sources such as natural gas or other localized energy infrastructure.
This setup allows for greater control, reliability, and often quicker regulatory approval since it doesn’t require extensive connection to or dependence on the larger, public energy grid.
Another big selling point for the province is its weather — Alberta’s cooler climate makes it attractive for data centre operations.
Data centres generate intense heat and require constant cooling to maintain optimal operating temperatures, which is one of their largest operational costs. Alberta’s naturally colder weather helps offset some of these cooling demands, reducing energy consumption and operational expenses for companies.
This climate benefit, combined with the province’s competitive energy strategy, makes Alberta an appealing location for data centres seeking both reliability and efficiency in their infrastructure.
Data centres’ constant need for power
Data centres run continuously to support the uninterrupted flow of digital information.
Even brief outages can disrupt financial markets, healthcare records, and cloud services for millions.
For data centres, base load power — the kind that can be relied on at all times — is essential.
While renewable energy is part of Alberta’s plan, it isn’t enough to meet data centres’ immediate demands, Glubish said.
The province’s natural gas resources, coupled with carbon capture, allow Alberta to provide a cleaner, reliable energy source now, Glubish said.
Nuclear power is also an option, and so is coal.
Coal is on its way out in Canada because of its high greenhouse gas emissions, and while nuclear energy offers a much cleaner option, it will take 10 to 15 years to build, Glubish says, noting that many of the big tech companies plan to look at building small modular reactors in the future.
“Natural gas is the only way to get this up at scale, and Alberta’s positioned extraordinarily well to supply significant natural gas-fired power plants,” he said. “The good news is that we also have the world’s leading expertise in carbon capture and utilization and storage. For a fraction of the cost of building nuclear, you can get net-zero natural gas.”
The reality of renewable energy for data centres
Glubish acknowledges Alberta’s dual commitment to data centre growth and environmental stewardship.
While renewable projects are a priority, Glubish is clear: they aren’t currently feasible for data centres at scale.
Wind and solar power fluctuate based on weather and time of day, making them insufficient to meet the non-stop energy needs of data centres.
In 2023, the Alberta government temporarily halted approvals for large-scale renewable projects to address concerns related to land use, end-of-life reclamation, and effects on agricultural land. This moratorium was lifted in 2024, but with added regulations to restrict the placement of new projects in certain areas, including agricultural lands.
This land-use debate has become a major consideration in discussions around powering new data centres.
Glubish noted that Alberta’s approach isn’t a rejection of renewables — it’s a prioritization of energy solutions that work right now while keeping future goals in view.
Alberta is courting Big Tech to the province
eStruxture Data Centers, a Canadian company, announced a significant investment in Alberta in October of 2024, indicating it planned to build a 90-megawatt data centre in Rocky View County, just north of Calgary.
This $750 million investment is set to be the largest data centre in Alberta, focusing on AI, cloud technologies, and high-capacity computing.
The Alberta government has also been actively courting U.S. tech firms to establish data centres in the province.
In September 2024, Glubish visited Silicon Valley to promote the province’s advantages, including its cold climate and abundant energy resources.
As data centres multiply globally, Alberta is making a clear statement: it’s ready to support this demand with the energy stability and strategic planning these projects require.
Read more: https://www.digitaljournal.com/tech-science/alberta-bets-on-natural-gas-and-carbon-capture-for-data-centre-boom/article#ixzz8rx0KThje