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CTV News
2 days ago
- Business
- CTV News
The digital asset industry is ‘the wave of the future,' but is Alberta ready for it in the present?
Cables are seen in crypto currency mining computers are seen in Istvan Tajti's office in Budapest, Hungary on Wednesday, 31. January 2018. Photo: Akos Stiller Alberta is pitching itself as a top destination for the digital asset industry, though some question if it's ready to do so. Technology Minister Nate Glubish announced a new strategy in 2024 to try and bring $100 billion worth of artificial intelligence (AI) data centres to the province within five years. But, while this growing industry offers the province an opportunity to diversify its natural gas market, critics argue there isn't a robust enough plan in place ahead of the desired boom. The digital asset industry includes block chain, cryptocurrency mining and data centres, which use large amounts of electricity to run the complex computing systems needed to mine cryptocurrency, like Bitcoin, or power AI for companies like Google. In December, the Royal Bank of Canada's Climate Action Institute released a report finding if all proposed data centres in Canada at that time were approved, they would account for 14 per cent of the country's total power needs by 2030. A study by the United Nations University, published in the Earth's Future journal, found global Bitcoin mining alone consumed more than 173 TWh between 2020 and 2021 – more than most countries. In Alberta, the digital asset industry is predominantly powered by natural gas and is well underway. Invest Alberta reports data centres in the province generated about $1.3 billion in revenue in 2023, reflecting an annual growth rate of 7.7 per cent since 2018. And revenue is poised to grow with a number of big projects on the books, including the $2.8-billion, 1.4 GW (gigawatt) Wonder Valley AI data centre in Grande Prairie – touted as the world's largest – and five 400-MW (megawatt) Beacon AI centres across the province, with one near Calgary estimated to cost $4 billion. In Fox Creek, global data centre giant Bitdeer is planning a new US$120-million 101 MW Bitcoin mining centre, which according to consulting firm TwelveSix Services, will be the largest crypto mining centre in Canada. Blake Fikowski, with TwelveSix Services, said Alberta's deregulated energy system and cheap natural gas make it an attractive destination for digital asset companies. It's a relationship that provides benefits both ways, he added. 'The biggest opportunity for our province and our energy producers is to think about being into this game in a meaningful way,' Fikowski said. 'It's an opportunity to sell our natural gas down fiber lines instead of pipelines we can't get built.' 'You're going to take the natural gas, you're going to convert it into electricity, you're going to utilize that electricity to have (computing power), and you're selling your gas on site.' The grid The digital asset industry requires vast amounts of electricity to operate, something that has led other jurisdictions to put limits on it over grid capacity and affordability concerns. In 2021, China put in a ban on cryptocurrency mining over environmental, financial and consumer protection concerns. Russia has also banned the practice in energy-scare regions. Both B.C. and Manitoba paused new connections for crypto mines in 2022 over questions around the economic return of the energy-intensive practice, and New Brunswick followed the next year. Fikowski said power-grid concerns in other jurisdictions are negated by Alberta's stranded gas assets, which companies can use to produce the electricity they need. In times when the grid is under strain, he added, those companies could even help boost supply. 'They're generating power for their own use,' he said, 'but they'll have a certain percentage of flexibility where it's really an economic decision to sell power to the grid … it will be a benefit to the whole province, because it will be, 'Oh, prices are going up. Here's supply.'' Fikowski said it makes more financial sense for companies to create their own electricity, but the province said they don't have to. 'AI and cryptocurrency data centres can purchase power from Alberta's electricity grid,' Glubish's office said in a statement. 'However, due to their substantial power demands, these centres must undergo a formal connection process managed by the Alberta Electric System Operator (AESO).' The current digital asset proposals on Major Projects Alberta would take the industry from its current electrical load of about 140 MW to upwards of 13 GW in the next decade. The province maintains the grid will be able to handle the influx, despite there being no current limit on how much power a data centre could buy from the existing grid. According to the province, data centres are assessed by the AESO to ensure they don't strain existing infrastructure or grid stability. Large consumers, like data centres, are also required to pay for grid maintenance or needed infrastructure upgrades. Glubish's office did not specify how the AESO or province would prevent increased electricity demands from raising prices for consumers. 'Alberta will evaluate both off-grid and grid-connected power solutions that avoid compromising the affordability and reliability of electricity for Albertans and local industries,' his office said. 'Alberta's government is currently developing a Blockchain Roadmap to provide a path forward to support the further growth and development of the blockchain and crypto sectors.' 'The cart before the horse' Nathan Ip, Alberta NDP shadow minister for technology and innovation, supports expanding the digital asset industry, but said the province should have already had robust plans in place before it started pitching investors. '(These technologies are) very much the wave of the future …. And I think that presents an opportunity for Alberta to position itself as a leader,' Ip said. 'There's a way to do it, and what we've seen from this government, unfortunately, is that there doesn't seem to be a plan there.' Ip said there hasn't been clear communication from the United Conservative Party government on how the industry will fit into Alberta's energy landscape in terms of the vast electricity and infrastructure needs. Kara Westerlund, Rural Municipalities of Alberta (RMA) president, agrees. 'We're excited and we want to support innovation, but we also need some clear rules,' Westerlund said. 'We know the industry is growing fairly rapidly right now, but it's moving a little bit quicker than policy … there's no comprehensive framework guiding what these developments are going to look like.' Westerlund said noise has been a big concern in some municipalities, as have questions around sustainable development and land use. '(These companies are) competing with oil and gas, agricultural operations, wildlife habitats and residential zoning, too,' she said. Jason Unger, a lawyer with the Environmental Law Centre, explained that the use of gas- or diesel-powered generators to power crypto mines on leased land have already caused issues. In Rocky View County, a landowner spent years in court after an oil and gas company set up an unauthorized crypto mine on leased land, which the landowner said was noisy and violated the terms of the lease agreement. 'Certain industry players have taken advantage of the Alberta system a little bit in terms of setting up shops and setting up gas-powered generators and piggybacking on old gas leases,' Unger said. 'It's kind of an evolving area,' he added. 'The challenge is in this interim period, it's kind of left to the landowner to deal with in a way where if it was properly planned and regulated from the front end, then you wouldn't have to have the landowner fighting.' Ip claims consultation has also been lacking, as in the case with Sturgeon Lake Cree Nation, which sent an open letter to the premier in January asking the province to halt plans for the Wonder Valley AI centre over water and land concerns. 'Chief Sunshine has come out to say, 'We haven't heard from the government about this at all,'' Ip said. 'This is a perfect example of how this government typically operates, which is, we're going to put the cart before the horse. 'We're going to announce something and figure it out later, and that isn't going to work in this case. It's not going to position us as leaders.' The RMA would like a seat at the table as well, Westerlund added. 'We're in a very unique opportunity to become a leader in this type of sector, but we need to do it right,' she added. 'That means engaging with rural municipalities early and ensuring there's shared benefits in creating clear, enforceable rules that protect our communities.' Oversight Neither the Alberta Utilities Commission (AUC) nor the Alberta Energy Regulator could say how many crypto mines or data centres there were in Alberta, saying they do not oversee or regulate the industry. Glubish's office did not answer when asked how the province is keeping tabs on digital asset companies, but said industry data estimates there are close to 50, with more than half of those established in the last fix or six years. The province did say that data centres must apply to all provincial rules and regulations, including the Water Act, the Environmental Protection and Enhancement Act, as well as the Emissions Reduction Regulation where applicable. Unger said that 'mixed regulatory picture' could lead to problems. 'If the AUC authorizes a power plant, that doesn't mean it's authorizing the development permit of a Bitcoin mining operation,' Unger said. 'It doesn't necessarily mean the water use or the other requirements of the mining operation, separate from the power plant, are somehow included in that.' '(Companies are) kind of playing in this area where they should be getting all the regulatory approvals from the various jurisdictions and agencies, and yet that doesn't necessarily happen as it should,' he added. Unger would like to see more clarity around the 'suite' of regulatory approvals required by companies, as well as more enforcement from the province. 'The overall regulatory framework, I think, needs to be emphasized and clarified,' he said. Particularly for the rights of landowners and protection of their property rights." The province said it will 'always put the well-being of Albertans first' and that it has developed a concierge program to help streamline the regulatory process for data centres and crypto mining companies. 'While there is no explicit regulatory framework for the digital asset industry in Alberta, there are specific legislative and regulatory requirements for electricity generation for on-site consumption,' the province said. 'Ultimately, all proposed and existing operations, including those in the blockchain, crypto and data centre space, are required to be in compliance with rules set out by Alberta's regulators, including the AUC.' According to global management firm McKinsey and Company, the AI boom could more than triple global demand for data centre capacity by 2030. It makes sense Alberta wants to be a part of that and cash in on natural gas assets that can't always find their way to market via pipeline. 'It would be a missed opportunity if we governments weren't prepared or weren't positioned to be able to tackle this way for the future, so I don't think there's misalignment there.' 'I think the question is, how do we do it?' With files from the Canadian Press
Globe and Mail
2 days ago
- Business
- Globe and Mail
RY, BCE, CSU: Canadian Stocks Get a Lift as Economy Grows More than Expected
Leading Canadian stocks such as Royal Bank (RY), BCE (BCE), and Constellation Software (CSU) are getting a lift after data showed the country's economy grew more than expected in the first quarter. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Canada's gross domestic product (GDP) increased 0.5% in the year's first quarter, the same rate of growth as in the previous fourth quarter of 2024. GDP in Q1 grew by 2.2% on an annualized basis. Analysts polled by Reuters (TRI) had expected first-quarter GDP to expand by 1.7% year-over-year. Statistics Canada said that exports of goods were largely responsible for the Q1 growth, followed by accumulations of business non-farm inventories. Higher imports and weak residential home sales were a drag on Canada's economic growth between January and the end of March. Preparing for Tariffs Canada's total exports rose 1.6% in the first quarter of 2025 after increasing 1.7% in the fourth and final quarter of 2024. Exports got a big boost from looming U.S. tariffs, said Statistics Canada, with exports of motor vehicles rising nearly 17% and industrial machinery and equipment jumping 12% higher. At the same time, imports increased 1.1% in the quarter, following a 0.6% rise in the previous quarter. Among Canadian households, spending slowed to 0.3% in the year's first three months after rising 1.2% in the fourth quarter of 2024. The household savings rate slowed to 5.7%, the lowest rate of growth since the first quarter of 2024. Investment income received declined 1.7% in Q1. Is BCE Stock a Buy? The stock of BCE has a consensus Hold rating among nine Wall Street analysts. That rating is based on one Buy, five Hold, and three Sell recommendations issued in the last three months. The average BCE price target of $33.22 implies 10.88% upside from current levels. Disclaimer & Disclosure Report an Issue
CTV News
2 days ago
- Business
- CTV News
Which major companies in Canada have asked staff to return to the office?
A woman walks in the financial district in Toronto on Sept. 20, 2022. (Alex Lupul / The Canadian Press) A few years after the COVID-19 pandemic, more employers are focusing on in-person collaboration, with one workplace culture expert saying some are asking workers to return to the office. 'We're seeing a shift in employer priorities because organizations coming back from (COVID-19) are emphasizing more collaboration, culture and oversight, especially in jobs or in roles where teamwork and client engagement are emphasized,' Candy Ho, a consultant for HR departments from different companies, said in a video interview with on Friday. While more companies have moved away from fully remote work since the days of lockdowns and COVID-19 concerns, Ho, a professor at Kwantlen Polytechnic University near Vancouver, expects the trend to 'stabilize' rather than continue to accelerate. 'It resides with individual employers ... when they look at their profitability, for instance, and productivity levels of employees, and whether or not they're working from home and in person, there are two sides of the coin.' Ho, a board member of the Canadian National Career Development Association, says employees may be more productive when they have more control and flexibility working from home. On the flip side, people with jobs that require more collaboration may find it makes more sense to be in the office. With news this week of Royal Bank of Canada shifting away from fully remote work, here are some of the major companies in the country that have made similar moves: Royal Bank of Canada RBC asked some employees to be in the office four times a week beginning in September, Reuters reported Thursday. Memos were sent by business leaders from the Toronto-based bank on Thursday, following the announcement of its second-quarter earnings, which were lower than analysts' expectations. The policy doesn't apply for fully remote workers and those who are already working in the office full-time, according to Reuters. A spokesperson was quoted as saying that RBC 'is a relationship-driven bank and in-person, human connection is core to our winning culture.' Some staff complained about the move during conversations in internal chat groups, noting the extra travel time and expenses, Reuters reported. RBC didn't immediately respond to request for comments. National Bank of Canada When asked about Montreal-based National Bank's back-to-office policy in Canada, a spokesperson said it varies. 'At National Bank, each team defines its way of working based on its specific needs and those of our clients,' a spokesperson wrote in an email to on Friday. 'Some teams work entirely on-site, while others follow a hybrid model that combines in-person and remote work.' The spokesperson didn't respond to request for more details. Canadian Imperial Bank of Commerce CIBC began asking staff from its global corporate and investment-banking unit to return to the office five days a week, Bloomberg reported in January 2025. The news outlet cited people with knowledge of the situation. CIBC didn't immediately respond to questions from about its current policy. 'At CIBC, the amount of time employees spend in the office depends on their role, taking into consideration things like the nature of their work and where they'll best meet our clients' needs,' spokesperson Andrew McGrath was quoted as saying in the Bloomberg report in January. 'For some teams, that may mean more days in the office, and for others, it may mean more days working remotely.' CIBC had asked staff in Canada to work remotely amid growing concerns about COVID-19 in December 2021, Reuters reported at the time. In 2021, the Toronto-based bank said staff who had returned on-site were asked to work remotely again. JPMorgan Chase Hybrid workers from New York-based bank JPMorgan Chase, which has more than 600 workers in Canada, have been asked to work in the office for five days a week since March, Reuters reported. JPMorgan Chase didn't immediately respond to question about whether its Canadian staff was affected. Facebook Meta Platforms Inc., parent company of Facebook, was a strong advocate of remote work during the pandemic, but Bloomberg reported in March 2023 the company encouraged staff to return to the office. CEO Mark Zuckerberg said in a statement at the time that some early analysis suggests 'engineers who either joined Meta in-person and then transferred to remote or remained in-person performed better on average than people who joined remotely,' according to the news report. Meta had created a policy in 2021 to allow all staff to work remotely if they could work outside the office, even after the pandemic. When asked what is Meta's current back-to-office policy in Canada, a spokesperson said in an email to on Friday that its policy currently allows employees to work three days a week in office, and those who've been with the company for more than 18 months are eligible to apply for remote work. The spokesperson did not immediately provide more information when asked for more details. Amazon Amazon has decided in-office work is best for employees. Amazon CEO Andy Jassy shared guidelines about its policy, which also applies to staff in Canada, in a message in September 2024. In the letter addressed to all staff, Jassy said the advantages of being together in the office 'are significant' after the company observed the situation with those working in the office at least three days a week over the past 15 months. Jassy said this policy will allow people to be 'better set up to invent, collaborate, and be connected enough to each other and our culture to deliver the absolute best for customers and the business.' Still, Jassy said it will continue to allow people to work remotely, as it did in some cases even before the pandemic, for 'extenuating circumstances,' such as family emergencies like a sick child, or if staff are approved to work outside the office. With files from Reuters and Bloomberg
Reuters
3 days ago
- Business
- Reuters
Canada's RBC asks staff to return to office four days a week
TORONTO, May 29 (Reuters) - Royal Bank of Canada ( opens new tab has asked employees to be in office four times a week starting in September, according to a memo seen by Reuters, prompting disapproval among some staff discussing the changes in internal chat groups. The memos from various business heads were sent to staff on Thursday shortly after the bank reported second-quarter earnings that were lower than analysts' expectations due to a rise in loan loss provisions to prepare for uncertain times. The memo said the rule does not apply for roles that are fully remote or are already in full-time office arrangements. "RBC is a relationship-driven bank and in-person, human connection is core to our winning culture. We set the expectation in 2023 that we'd come together in the office for the majority of the time, with the flexibility to work remotely one to two days a week," a spokesperson said. A company-wide internal chat group that discussed the change in policy raised questions such as additional travel time and expenses related to transport, a source told Reuters. The Canadian lender's decision comes shortly after U.S. bank JPMorgan Chase (JPM.N), opens new tab, in January asked its employees who are on hybrid work schedules to return to the office five days a week starting in March. RBC has over 94,000 full-time employees across global offices, as of April 30.
Yahoo
4 days ago
- Business
- Yahoo
Royal Bank (RY) Q2 Earnings and Revenues Lag Estimates
Royal Bank (RY) came out with quarterly earnings of $2.20 per share, missing the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $2.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.22%. A quarter ago, it was expected that this bank would post earnings of $2.28 per share when it actually produced earnings of $2.55, delivering a surprise of 11.84%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Royal Bank , which belongs to the Zacks Banks - Foreign industry, posted revenues of $11.03 billion for the quarter ended April 2025, missing the Zacks Consensus Estimate by 1.57%. This compares to year-ago revenues of $10.43 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Royal Bank shares have added about 7% since the beginning of the year versus the S&P 500's gain of 0.1%. While Royal Bank has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Royal Bank: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.19 on $11.27 billion in revenues for the coming quarter and $9.46 on $46.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the top 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Jefferies (JEF), another stock in the broader Zacks Finance sector, has yet to report results for the quarter ended May 2025. This investment banking and capital markets company is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of -20.9%. The consensus EPS estimate for the quarter has been revised 9.4% lower over the last 30 days to the current level. Jefferies' revenues are expected to be $1.63 billion, down 1.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Bank Of Canada (RY) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error 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
