Latest news with #AaronEngen
Globe and Mail
4 days ago
- Business
- Globe and Mail
Alberta grid operator's power cap could thwart province's AI data-centre ambitions, critics say
Alberta's grid operator is putting an interim limit on the amount of electricity it will provide to new data centres after a massive surge in requests for power from developers. But the approach could thwart the provincial government's ambition to become a home for the energy-hungry infrastructure that is necessary to run artificial-intelligence models and applications. The Alberta Electric System Operator said on Wednesday it is allotting 1,200 megawatts of electricity for large-load projects, such as data centres, through to 2028. But around 29 data-centre projects are requesting to be connected to more than 16,000 megawatts of electricity – which is more than the province's peak consumption. 'Alberta cannot possibly connect all that,' said AESO chief executive officer Aaron Engen during a media briefing. The electricity cap is necessary to ensure the grid, which transmits power to homes and businesses, remains stable and reliable, he said. The allotment, which is less than 10 per cent of overall demand, still allows projects to come online soon, he added. Alberta wants to attract massive data centres to power generative AI. But current infrastructure can't handle their near-endless demand for electricity AESO has identified 15 projects for consideration to connect to the grid in the near-term, and developers are required to show proof of financial security and letters of support from the municipalities in which they intend to operate. Qualifying developers will receive a pro rata share of the 1,200 megawatts. The United Conservative government in Alberta announced a strategy in December to attract data-centre operators in response to the global boom in AI. Building and running AI models requires large amounts of electricity, and the province has an abundance of untapped natural gas for generation. Alberta is overhauling its energy market. Here's what's happening, and why Technology and Innovation Minister Nate Glubish has also spoken of attracting hyperscale customers, the term for large tech companies such as Google Inc. and Meta Platforms Inc. that are the biggest developers and users of AI. 'We heard clearly from data centre proponents that they needed clarity from [AESO] on how this capacity would be distributed,' Mr. Glubish said in an e-mailed statement Wednesday. 'Today's announcement delivers that clarity.' But Edmonton-based Capital Power LP, which operates generation facilities in Canada and the United States, said AESO's approach will undermine the goal of turning Alberta into an AI data-centre hub. 'We've got a bit of a bust here,' said Pauline McLean, the company's chief legal officer. 'I don't think it's actually going to meet the government's policy objectives.' Capital Power has a proposed data-centre campus in Alberta for up to 1,500 megawatts that is geared toward hyperscale customers, who require hundreds of megawatts of power. But under AESO's methodology, the project could be allotted less than 250 megawatts. 'We simply will not attract those customers,' Ms. McLean said. AESO's criteria should be more stringent, she said, and consider how data-centre proposals align with the provincial government's goals, whether First Nations communities are involved, and what upgrades to transmission infrastructure are needed. Editorial: Free the market for renewable energy in Alberta That could allow for power to be spread out among a smaller number of data centres, but each one having more capacity. The provincial government has said that its preference is for data-centre operators to generate their own power, rather than rely heavily on the grid. AESO's Mr. Engen said that concept makes 'perfect sense,' but added the industry is competitive and the goal is to have new data centres operating as soon as possible. Ms. McLean, too, said building new generation capacity would take years. 'This puts Alberta in a less competitive position. Tech firms are looking for power and looking for power now,' said Shaz Merwat, energy lead at the Climate Action Institute at RBC. 'But it's hard to push back on prudence,' he added, referring to AESO. Longer term, the province remains attractive for development, partly because of the government's support for data centres, he said. TD Cowen analyst John Mould said in a note Thursday that AESO's allocation approach and the lack of clarity beyond 2028 could limit the potential for large data centres. 'A lack of runway could dissuade initial investment,' he wrote. Beacon AI Centers, which plans to develop six large data-centre campuses in Alberta, said AESO's process has not changed its views of the province's potential. 'We remain extremely bullish on Alberta,' said CEO Josh Schertzer in a statement. Alberta isn't the only province dealing with electricity constraints. Ontario's provincial government introduced legislation this week to better handle dozens of data-centre proposals that would require up to 6,500 megawatts of electricity, or close to 30 per cent of peak demand. Utilities are currently required to connect data centres to the grid regardless of the economic benefits or energy requirements, the government said. With the proposed bill, unveiled by Minister of Energy and Mines Stephen Lecce, the province wants to instead prioritize projects 'that maximize benefit to the Ontario economy and work force,' according to a government news release.
CBC
4 days ago
- Business
- CBC
Alberta's power grid 'cannot possibly connect' all proposed data centres, system operator says
Social Sharing The Alberta Electric System Operator (AESO) is introducing temporary limit on how many new data centres can be added to the electrical grid, as the province experiences un unprecedented surge of project proposals. AESO, the independent operator of Alberta's electrical grid, will enable up to 1.2 gigawatts for new large-load data centres in Alberta until 2028. The cap applies to large-load projects that equal or exceed 75 megawatts. But the 29 proposed projects would demand more than 16 gigawatts combined, a level of demand the province has never experienced, said AESO CEO Aaron Engen. "Alberta cannot possibly connect all those proposed data centre projects in the short term," said Engen. "We need to develop an approach to approve data centre connections that, No. 1, don't negatively impact grid reliability; No. 2, that can facilitate data centre investment development as early as [2027-28]." To illustrate the level of demand Alberta is seeing, AESO noted that the city of Edmonton uses roughly 1.4 gigawatts per day. AESO added that it believes the additional 1.2 gigawatts could still unlock billions of dollars in investment in data centres. But Engen said the agency cannot connect new projects if they would compromise the grid's reliability. AESO's limit, he added, is meant to preserve the system's integrity provincewide, while still enabling some data centre development. "This is a very competitive industry right now and people want to get real estate, want to be built, want to have something operating as soon as possible," Engen said. "That's why we're talking about just freeing up, if you will, [1.2 gigawatts] of supply for people to get some development today." Late last year, Alberta Technology Minister Nate Glubish said he hopes to see $100 billion worth of artificial intelligence data centres under construction within the next five years. The centres are typically filled with computer servers used to develop and train large-scale artificial intelligence models. The Alberta government has also highlighted the province's deregulated electricity market as a draw for operators, who can use it for off-grid power generation. If the generation is completely off grid, it doesn't come to AESO to facilitate these applications. But Engen agreed that the bring-your-own-generation concept makes perfect sense, and that data centres setting up their own power generation could be a sensible way to develop more projects. AESO has filtered the number of proposals to 15 through the organization's process for consideration. Rob Davidson, AESO vice president of grid reliability, projects and planning, said more projects could be filtered out over the next month. "It will be all dependent upon each of those projects' ability to get letters of support from their municipality and produce their financial security," Davidson said. AESO doesn't know yet how many of the project proposals are for AI, cloud services or cryptocurrency, he said. But before approving them, the organization will need to understand the operations of each centre and how they would impact the grid.
CBC
4 days ago
- Business
- CBC
AESO proposes short-term limit on power for new large-load data centres amid Alberta's unprecedented demand
The Alberta Electric System Operator (AESO) is introducing temporary limit on how many new data centres can be added to the electrical grid, as the province experiences un unprecedented surge of project proposals. AESO, the independent operator of Alberta's electrical grid, will enable up to 1.2 gigawatts for new large-load data centres in Alberta until 2028. The cap applies to large-load projects that equal or exceed 75 megawatts. But the 29 proposed projects would demand more than 16 gigawatts combined, a level of demand the province has never experienced, said AESO CEO Aaron Engen. "Alberta cannot possibly connect all those proposed data centre projects in the short term," said Engen. "We need to develop an approach to approve data centre connections that, No. 1, don't negatively impact grid reliability; No. 2, that can facilitate data centre investment development as early as [2027-28]." To illustrate the level of demand Alberta is seeing, AESO noted that the city of Edmonton uses roughly 1.4 gigawatts per day. AESO added that it believes the additional 1.2 gigawatts could still unlock billions of dollars in investment in data centres. But Engen said the agency cannot connect new projects if they would compromise the grid's reliability. AESO's limit, he added, is meant to preserve the system's integrity provincewide, while still enabling some data centre development. "This is a very competitive industry right now and people want to get real estate, want to be built, want to have something operating as soon as possible," Engen said. "That's why we're talking about just freeing up, if you will, [1.2 gigawatts] of supply for people to get some development today." Late last year, Alberta Technology Minister Nate Glubish said he hopes to see $100 billion worth of artificial intelligence data centres under construction within the next five years. The centres are typically filled with computer servers used to develop and train large-scale artificial intelligence models. The Alberta government has also highlighted the province's deregulated electricity market as a draw for operators, who can use it for off-grid power generation. If the generation is completely off grid, it doesn't come to AESO to facilitate these applications. But Engen agreed that the bring-your-own-generation concept makes perfect sense, and that data centres setting up their own power generation could be a sensible way to develop more projects. AESO has filtered the number of proposals to 15 through the organization's process for consideration. Rob Davidson, AESO vice president of grid reliability, projects and planning, said more projects could be filtered out over the next month. "It will be all dependent upon each of those projects' ability to get letters of support from their municipality and produce their financial security," Davidson said. AESO doesn't know yet how many of the project proposals are for AI, cloud services or cryptocurrency, he said. But before approving them, the organization will need to understand the operations of each centre and how they would impact the grid.
CBC
5 days ago
- Business
- CBC
AESO proposes short-term limit on power new large-load data centres amid Alberta's unprecedented demand
The Alberta Electric System Operator (AESO) is introducing temporary limit on how many new data centres can be added to the electrical grid, as the province experiences un unprecedented surge of project proposals. AESO, the independent operator of Alberta's electrical grid, will enable up to 1.2 gigawatts for new large-load data centres in Alberta until 2028. The cap applies to large-load projects that equal or exceed 75 megawatts. But the 29 proposed projects would demand more than 16 gigawatts combined, a level of demand the province has never experienced, said AESO CEO Aaron Engen. "Alberta cannot possibly connect all those proposed data centre projects in the short term," said Engen. "We need to develop an approach to approve data centre connections that, No. 1, don't negatively impact grid reliability; No. 2, that can facilitate data centre investment development as early as [2027-28]." To illustrate the level of demand Alberta is seeing, AESO noted that the city of Edmonton uses roughly 1.4 gigawatts per day. AESO added that it believes the additional 1.2 gigawatts could still unlock billions of dollars in investment in data centres. But Engen said the agency cannot connect new projects if they would compromise the grid's reliability. AESO's limit, he added, is meant to preserve the system's integrity provincewide, while still enabling some data centre development. "This is a very competitive industry right now and people want to get real estate, want to be built, want to have something operating as soon as possible," Engen said. "That's why we're talking about just freeing up, if you will, [1.2 gigawatts] of supply for people to get some development today." Late last year, Alberta Technology Minister Nate Glubish said he hopes to see $100 billion worth of artificial intelligence data centres under construction within the next five years. The centres are typically filled with computer servers used to develop and train large-scale artificial intelligence models. The Alberta government has also highlighted the province's deregulated electricity market as a draw for operators, who can use it for off-grid power generation. If the generation is completely off grid, it doesn't come to AESO to facilitate these applications. But Engen agreed that the bring-your-own-generation concept makes perfect sense, and that data centres setting up their own power generation could be a sensible way to develop more projects. AESO has filtered the number of proposals to 15 through the organization's process for consideration. Rob Davidson, AESO vice president of grid reliability, projects and planning, said more projects could be filtered out over the next month. "It will be all dependent upon each of those projects' ability to get letters of support from their municipality and produce their financial security," Davidson said. AESO doesn't know yet how many of the project proposals are for AI, cloud services or cryptocurrency, he said. But before approving them, the organization will need to understand the operations of each centre and how they would impact the grid.
Yahoo
02-06-2025
- Business
- Yahoo
Media Advisory - AESO Announces Interim Approach to Large Load Connections
Please note that attendance and registration for this media availability session is limited to . All materials shared with the media will be made available on following the session. CALGARY, Alberta, June 02, 2025 (GLOBE NEWSWIRE) -- The Alberta Electric System Operator (AESO) is hosting a media availability session to speak about the amount (megawatts) of new large load data centres that can be reliably served in the immediate term. The AESO will also share the methodology to assign that load amount to developers currently requesting system access for data centre projects. A question-and-answer session will follow the presentation. Date: Wednesday, June 4, 2025 Who: Aaron Engen, President & CEORobert Davidson, Vice President Grid Reliability – Projects and Planning Time: 2:00 p.m. to 2:30 p.m. MDT Location: Online via Teams (click here to register) Why: As the Independent System Operator, the AESO is responsible for connecting data centres and other large-load projects while protecting grid reliability in Alberta. Background: Data Centre Connection Process Update (March 20, 2025)Connections Project Dashboard · Starter Portal Contact: AESO Media Relations at media@ X (Twitter): @theaeso The Alberta Electric System Operator is responsible for the safe, reliable, and economic planning and operation of the Alberta Interconnected Electric System. We provide open and non-discriminatory access to Alberta's interconnected power grid, and we also facilitate Alberta's competitive wholesale electricity in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
