Latest news with #AlbertaElectricSystemOperator
Calgary Herald
29-06-2025
- Business
- Calgary Herald
Edmonton area First Nations chiefs call for provincial rethink on data centre policy
Four Edmonton area First Nations chiefs have sent a letter to the Alberta government criticizing the province's electric system operator for its new policy that would for now limit the capacity of large AI data centres, an industry in which they are eager to take part. Article content Chiefs of Alexander First Nation (40 km northwest of Edmonton), Alexis Nakota Sioux Nation (85 km northwest of Edmonton), Paul First Nation (65 km west of Edmonton), and Enoch Cree Nation (135 south of Edmonton, one of four bands at Maskwacis), and Alexis Nakota Sioux Nation (85 km northwest of Edmonto), sent a letter on Thursday commending the province for positioning Alberta at the forefront of the industry and emphasizing their desire to be stakeholders and potential investors in new artificial intelligence (AI) data centres. However, they said the Alberta Electric System Operator's (AESO) interim policy to limit power capacity for large data centres is 'inconsistent' with the province's long-term goals. Article content Article content Article content Data centres are huge facilities housing the computing firepower needed for artificial intelligence and other applications. It can take an enormous amount of power to run and cool them. The chiefs say the amount of power the AESO has allotted to new projects falls short of what is needed to attract and retain the interest of big tech. Article content Article content 'While the release of this allocation methodology is a long-awaited milestone that provides some much-needed clarity, the approach appears fundamentally inconsistent with Alberta's stated policy objectives of attracting large hyperscalers and catalyzing a data centre industry at scale,' the letter said. Article content 'In simple terms, Alberta's current framework is capping our potential at the very moment we should be unleashing it.' Article content AESO's interim policy was announced at the beginning of June and would enable connections up to 1,200 megawatts for all large load projects between 2025 and 2028. Article content Article content Maximum load Article content Article content In a statement to Postmedia, AESO said 1,200 MW is the maximum load that can be quickly connected to Alberta's grid without negatively impacting its reliability. Beyond the number, the grid reliability would face 'greater and greater risks.' Article content 'Those MWs were fairly allocated to developers with the most mature data centre projects based on where they stood in the AESO's connection process,' the statement said. Article content 'Meeting future demand will require new generation and, potentially, infrastructure investment. As the Independent System Operator, the AESO is working closely with government and industry to evaluate those solutions.' Article content AESO said the approach is a response to a surge in data centre requests, with 29 proposed projects representing more than 16 gigawatts (GW) of demand seeking grid connections.
Edmonton Journal
29-06-2025
- Business
- Edmonton Journal
Edmonton area First Nations chiefs call for provincial rethink on data centre policy
Article content Four Edmonton area First Nations chiefs have sent a letter to the Alberta government criticizing the province's electric system operator for its new policy that would for now limit the capacity of large AI data centres, an industry in which they are eager to take part. Chiefs of Alexander First Nation (40 km northwest of Edmonton), Alexis Nakota Sioux Nation (85 km northwest of Edmonton), Paul First Nation (65 km west of Edmonton), and Enoch Cree Nation (135 south of Edmonton, one of four bands at Maskwacis), and Alexis Nakota Sioux Nation (85 km northwest of Edmonto), sent a letter on Thursday commending the province for positioning Alberta at the forefront of the industry and emphasizing their desire to be stakeholders and potential investors in new artificial intelligence (AI) data centres. However, they said the Alberta Electric System Operator's (AESO) interim policy to limit power capacity for large data centres is 'inconsistent' with the province's long-term goals.
Hamilton Spectator
28-06-2025
- Business
- Hamilton Spectator
First Nations say Alberta data centre approach won't attract big tech players
CALGARY - The chiefs of four First Nations in Alberta say they're eager to take part in the province's nascent data centre industry, but argue the province is taking the wrong approach to attract large-scale tech players. The chiefs of the Alexander First Nation, Paul First Nation, Enoch Cree Nation and Alexis Nakota Sioux Nation outlined their concerns this week in an open letter to Premier Danielle Smith and members of her government. 'There are shovel-ready proposals backed by major industry players aligned with government objectives that will be left stranded without a change in proposed policy,' the chiefs wrote. 'Alberta should be a premier destination for hyperscale data centre investment. But strengths only matter if we act on them. Right now, Alberta's ability to execute and deliver on its promise is in question.' Data centres are huge facilities housing the computing firepower needed for artificial intelligence and other applications. It can take an enormous amount of power to run and cool them. The chiefs say the amount of power the Alberta Electric System Operator has allotted to new projects falls short. The Alberta Electric System Operator said earlier this month that it has received requests from 29 proposed data centre projects representing more than 16,000 megawatts — more than 11 times the City of Edmonton's load. It said it will allow the connection of up to 1,200 megawatts of large load projects between now and 2028. 'Alberta has never seen this level and volume of load connection requests,' said AESO CEO Aaron Engen. 'As the system operator, we are responsible for ensuring that new project connections do not compromise grid reliability. Because connecting all large loads seeking access would impair grid reliability, we established a limit that preserves system integrity while enabling timely data centre development in Alberta.' The Alberta government has set a goal of attracting $100 billion in data centre investment over five years. But the chiefs wrote that the limit sends the wrong signal to tech powerhouses like Meta and Amazon. 'The hyperscalers 'don't build small.' They think in gigawatts, because their global operations require that scale,' they wrote. 'Under the current proposal, not even one such flagship project may be fully realized here without years of delay, since 1,200 megawatts total divided among many projects signals that Alberta isn't prepared to accommodate a true hyperscaler's needs. 'This sends an unintended but clear message to investors that Alberta's actions do not match its ambitions.' The Alberta government supports the 'balanced approach' the AESO is taking, said the press secretary for Affordability and Utilities Minister Nathan Neudorf. 'Alberta aims to be the destination of choice for AI data centres in North America,' Ashli Barrett said in a written statement. 'At the same time, our government will always put the well-being of Albertans first and ensure data centre projects will not compromise the affordability or reliability of the electricity that millions of Albertans, First Nations, and our local industries depend on.' Barrett added the 1,200-megawatt limit is short-term and should not be thought of as a cap. 'It will enable data centre projects in advanced stages of planning and development to get started, while government works to develop a long-term framework for data centres, which will provide additional pathways for data centres projects to meet their power needs, including encouraging them to bring their own power.' Chief Tony Alexis of the Alexis Nakota Sioux Nation northwest of Edmonton said his community is looking at taking an equity stake in a project, and discussions are in the early stages. He said First Nations want more than to be consulted — they are ready to invest. 'Our nations have been growing. We've got young populations and this industry can bring some real training, some jobs, some long-term prosperity for our community,' Alexis said in an interview. 'Alberta is aiming for a championship-level digital economy. We just need the stadium doors open wide enough so that the star players can participate and everyone wins.' This report by The Canadian Press was first published June 27, 2025.
Global News
27-06-2025
- Business
- Global News
First Nations say Alberta data centre strategy won't attract big tech players
The chiefs of four First Nations in Alberta say they're eager to take part in the province's nascent data centre industry, but argue the province is taking the wrong approach to attract large-scale tech players. The chiefs of the Alexander First Nation, Paul First Nation, Enoch Cree Nation and Alexis Nakota Sioux Nation outlined their concerns this week in an open letter to Premier Danielle Smith and members of her government. 'There are shovel-ready proposals backed by major industry players aligned with government objectives that will be left stranded without a change in proposed policy,' the chiefs wrote. 'Alberta should be a premier destination for hyperscale data centre investment. But strengths only matter if we act on them. Right now, Alberta's ability to execute and deliver on its promise is in question.' Data centres are huge facilities housing the computing firepower needed for artificial intelligence and other applications. It can take an enormous amount of power to run and cool them. The chiefs say the amount of power the Alberta Electric System Operator has allotted to new projects falls short. Story continues below advertisement The Alberta Electric System Operator said earlier this month that it has received requests from 29 proposed data centre projects representing more than 16,000 megawatts — more than 11 times the City of Edmonton's load. It said it will allow the connection of up to 1,200 megawatts of large load projects between now and 2028. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Alberta has never seen this level and volume of load connection requests,' said AESO CEO Aaron Engen. 'As the system operator, we are responsible for ensuring that new project connections do not compromise grid reliability. Because connecting all large loads seeking access would impair grid reliability, we established a limit that preserves system integrity while enabling timely data centre development in Alberta.' The Alberta government has set a goal of attracting $100 billion in data centre investment over five years. Story continues below advertisement But the chiefs wrote that the limit sends the wrong signal to tech powerhouses like Meta and Amazon. 'The hyperscalers 'don't build small.' They think in gigawatts, because their global operations require that scale,' they wrote. 'Under the current proposal, not even one such flagship project may be fully realized here without years of delay, since 1,200 megawatts total divided among many projects signals that Alberta isn't prepared to accommodate a true hyperscaler's needs. 'This sends an unintended but clear message to investors that Alberta's actions do not match its ambitions.' The Alberta government supports the 'balanced approach' the AESO is taking, said the press secretary for Affordability and Utilities Minister Nathan Neudorf. 'Alberta aims to be the destination of choice for AI data centres in North America,' Ashli Barrett said in a written statement. 'At the same time, our government will always put the well-being of Albertans first and ensure data centre projects will not compromise the affordability or reliability of the electricity that millions of Albertans, First Nations, and our local industries depend on.' Barrett added the 1,200-megawatt limit is short-term and should not be thought of as a cap. 'It will enable data centre projects in advanced stages of planning and development to get started, while government works to develop a long-term framework for data centres, which will provide additional pathways for data centres projects to meet their power needs, including encouraging them to bring their own power.' Story continues below advertisement Chief Tony Alexis of the Alexis Nakota Sioux Nation northwest of Edmonton said his community is looking at taking an equity stake in a project, and discussions are in the early stages. He said First Nations want more than to be consulted — they are ready to invest. 'Our nations have been growing. We've got young populations and this industry can bring some real training, some jobs, some long-term prosperity for our community,' Alexis said in an interview. 'Alberta is aiming for a championship-level digital economy. We just need the stadium doors open wide enough so that the star players can participate and everyone wins.'
Calgary Herald
14-06-2025
- Business
- Calgary Herald
Opinion: Don't panic: AESO data centre limits are a red herring
The Alberta Electric System Operator's new 1,200-megawatt cap on large electricity loads understandably has some people warning that Alberta might 'miss the AI economy.' That anxiety rests on an old assumption: that tomorrow's AI infrastructure will sit in ever-bigger, grid-tied campuses. Article content It did — five years ago. But today, the industry is running the other way and taking its money with it. Article content Article content Article content In March, Microsoft walked away from roughly two thousand megawatts of data-centre leases in the United States and Europe, telling analysts it now has 'oversupply' and needs a nimbler footprint. Yet, the company will still spend about US$80 billion on capacity this year — just not in hyperscale blocks wired to public grids, and certainly not at the end of long interconnection processes. Article content Article content Where is that money going? Increasingly to private, self-powered sites. Crusoe Energy, for instance, is building the first 200-megawatt phase of an off-grid watt-bit infrastructure campus near Abilene, Texas, to host OpenAI's 'Stargate' facility, fuelled by local natural gas rather than powered by the Texas grid. Such projects now exceed 10 thousand megawatts in global pipelines, and include some suppliers with roots here in Calgary's energy sector and capital market. Article content Article content The logic of it is simple. Cutting-edge AI chips can cost about $20 million per megawatt and age out in two years — roughly 100 times the capital intensity of a gas turbine that lasts decades. However, unlike a gas turbine, which might earn $50 to $75 per megawatt-hour in traditional power markets, a chipset like an NVIDIA H100 can turn that same megawatt-hour into nearly $4,000 — more than 65 times the commodity value of that same energy at Alberta's wholesale price. Article content When hardware that expensive and short-lived can earn more than 65 times the value of the energy it burns, operators will do almost anything to keep it running — and the regulatory, political and queuing risks that come with a public grid look less and less tolerable. Proposals that would require data centres to operate for the benefit of power grids make no economic sense to operators who do not share a low-margin, multi-decade view of the present value of energy.
