Connect with us

Alberta

AI-driven data centre energy boom ‘open for business’ in Alberta

Published

5 minute read

From the Canadian Energy Centre

By Deborah Jaremko and Will Gibson

“These facilities need 24/7, super-reliable power, and there’s only one power generation fuel that has any hope of keeping up with the demand surge: natural gas”

Data centres – the industrial-scale technology complexes powering the world’s growing boom in artificial intelligence – require reliable, continuous energy. And a lot of it.

“Artificial Intelligence is the next big thing in energy, dominating discussions at all levels in companies, banks, investment funds and governments,” says Simon Flowers, chief analyst with energy consultancy Wood Mackenzie.

The International Energy Agency (IEA) projects that the power required globally by data centres could double in the next 18 months. It’s not surprising given a search query using AI consumes up to 10 times the energy as a regular search engine.

The IEA estimates more than 8,000 data centres now operate around the world, with about one-third located in the United States. About 300 centres operate in Canada.

It’s a growing opportunity in Alberta, where unlike anywhere else in the country, data centre operators can move more swiftly by “bringing their own power.”

In Alberta’s deregulated electricity market, large energy consumers like data centres can build the power supply they need by entering project agreements directly with electricity producers instead of relying solely on the power of the existing grid.

Between 2018 and 2023, data centres in Alberta generated approximately $1.3 billion in revenue, growing on average by about eight percent per year, lawyers with Calgary-based McMillan LLP wrote in July.

“Alberta has a long history of building complex, multi-billion-dollar infrastructure projects with success and AI data centres could be the next area of focus for this core competency,” McMillan’s Business Law Bulletin reported.

In recent years, companies such as Amazon and RBC have negotiated power purchase agreements for renewable energy to power local operations and data centres, while supporting the construction of some of the country’s largest renewable energy projects, McMillan noted.

While the majority of established data centres generally have clustered near telecommunications infrastructure, the next wave of projects is increasingly seeking sites with electricity infrastructure and availability of reliable power to keep their servers running.

The intermittent nature of wind and solar is challenging for growth in these projects, Rusty Braziel, executive chairman of Houston, Texas-based consultancy RBN Energy wrote in July

“These facilities need 24/7, super-reliable power, and there’s only one power generation fuel that has any hope of keeping up with the demand surge: natural gas,” Braziel said.

TC Energy chief operating officer Stan Chapman sees an opportunity for his company’s natural gas delivery in Canada and the United States.

“In Canada, there’s around 300 data centre operations today. We could see that load increasing by one to two gigawatts before the end of the decade,” Chapman said in a conference call with analysts on August 1.

“Never have I seen such strong prospects for North American natural gas demand growth,” CEO François Poirier added.

Alberta is Canada’s largest natural gas producer, and natural gas is the base of the province’s power grid, supplying about 60 percent of energy needs, followed by wind and solar at 27 percent.

“Given the heavy power requirements for AI data centres, developers will likely need to bring their own power to the table and some creative solutions will need to be considered in securing sufficient and reliable energy to fuel these projects,” McMillan’s law bulletin reported.

The Alberta Electric System Operator (AESO), which operates the province’s power grid, is working with at least six proposed data centre proposals, according to the latest public data.

“The companies that build and operate these centres have a long list of requirements, including reliable and affordable power, access to skilled labour and internet connectivity,” said Ryan Scholefield, the AESO’s manager of load forecasting and market analytics.

“The AESO is open for business and will work with any project that expresses an interest in coming to Alberta.”

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Alberta

Involvement of non-governmental health operators could boost access to health care in Alberta, if done properly, says MEI researcher

Published on

News release from the Montreal Economic Institute

If properly executed, the Smith government’s plans to have management of some hospitals transferred to independent operators could help improve access to health care, according to a researcher at the Montreal Economic Institute.

“The wait times that have become characteristic of Alberta’s and Canada’s health systems are amongst the longest in the developed world,” explains Krystle Wittevrongel, director of research at the MEI. “When we look at European countries that perform better on access to care than we do, the existence of competition between care providers is the norm.”

Alberta Premier Danielle Smith has announced plans to introduce competition to the province’s health care system by transferring authority over hospital management to non-governmental health operators.

The move is intended to drive better performance from Alberta Health Services.

A recent MEI publication found that autonomous not-for-profit hospitals tend to perform better than their government-run peers, as seen in Germany, France and the Netherlands.

However, according to the researcher two key ingredients are necessary for the model to function effectively.

The first is managerial autonomy, which has been shown to help bring decision-making closer to front-line health professionals and lead to faster and more efficient adaptation to changing health needs in a region.

The second ingredient is the reliance on an activity-based funding model in which a hospital receives a set amount of money for each treatment carried out within its walls. Under this system, Wittevrongel says, each additional patient treated represents an immediate source of revenue for the facility.

Under the current funding model, hospitals receive a fixed budgetary envelope every year, which they then spend on patient treatment over the course of the following twelve months. Since every new patient is a source of cost, this often leads to rationing of services, explains the researcher.

“With the right incentives and competition, our province’s hospitals could treat more patients than they do now,” notes Ms. Wittevrongel. “By introducing such competition, the Smith government is taking a step in the right direction.

“It just needs to make sure it enacts the right incentives for this reform to reach its full potential and increase access to care in the way Albertans want and deserve.”

* * *

The MEI is an independent public policy think tank with offices in Montreal and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

Continue Reading

Alberta

Police arrest second suspect in August 6 murder and attempted murder in Rocky View County

Published on

News release from Alberta RCMP

Elijah Blake Strawberry arrested Friday on the O’Chiese First Nation

Following an intense search and multiple pleas for information, on Sept.. 13, 2024, just after 1 p.m., members of the Alberta RCMP Major Crimes Unit successfully and safely arrested 28-year-old Elijah Blake Strawberry at a residence on O’Chiese First Nation.

Strawberry will be taken before a justice of the peace to determine his release status and future court date.

With this arrest, the Alberta RCMP are confident that both suspects involved in the Aug. 6, 2024, homicide of Colin John Hough and the attempted murder of another individual are in custody.

“We received tips and information from the public over the course of the last few weeks and the arrest of Elijah Strawberry serves as a reminder of the value of public assistance in maintaining public safety, “ says Chief Superintendent Roberta McKale, “The Alberta RCMP had a significant co-ordinated effort with many different units engaged from across the Province offering thousands of work hours to locate and arrest Elijah Strawberry.  I would like to thank our dedicated officers from the Alberta RCMP Major Crimes Unit as well as all other support Units who worked tirelessly to this point and will continue to work on this investigation now that Elijah Strawberry is in custody. I would also like to thank our partners from Edmonton, Calgary, and Lethbridge Police Services, the Alberta Law Enforcement Response Teams, and the provincial Sheriffs who all assisted in our efforts to locate this offender.”

Despite the arrests of Arthur Penner and Elijah Strawberry, the investigation into this matter continues. The RCMP asks anyone with information about these crimes to come forward.

As always, our thoughts are with our victims and their family and friends who have been so deeply affected by this senseless tragedy.

Continue Reading

Trending

X