Alberta laying out the welcome mat for AI Data Centres

Fueling innovation through AI data centre attraction

Alberta’s government is aiming for Alberta to become North America’s destination of choice for Artificial Intelligence (AI) data centre investment.

The AI data centre attraction strategy identifies three pillars that create the foundation of Alberta’s work to position itself as a competitive player in the global AI landscape: power capacity, sustainable cooling and economic diversification. In each of these strategic areas, there are policy and regulatory levers required in addition to other steps Alberta’s government is taking to ensure Alberta is the most attractive and competitive destination for this emerging sector. The entire approach prioritizes competitive advantages, economic integration, market stability and keeping utilities reliable and affordable.

“Artificial intelligence is behind all the newest technologies we rely on to make our lives better, simpler, safer. There’s incredible opportunity around artificial intelligence and we are unafraid to dream big. This strategy will position Alberta as the place to invest and build AI data centres, further building on our reputation as a province with no limit to innovation and opportunity.”

Danielle Smith, Premier of Alberta

The world’s largest AI companies are in search of opportunities to build and energize their data centres. Alberta, with its abundant natural gas supply and world-class power industry, is highly attractive to AI data centre projects. The province’s unique competitive power market opens the door to many opportunities for AI companies to partner with Alberta’s talented and experienced electricity sector. The sector has decades of experience in finding innovative solutions to meet industry’s power needs while maintaining a balance of affordability and reliability in a system that Albertans count on.

AI data centres generate a lot of heat and require cooling. The strategy encourages operators to determine the cooling technology best suited for their needs, water license availability and regional and project circumstance. Additionally, Alberta’s climate offers significant advantages for AI data centres because of the province’s cold winters, which would reduce the need for artificial cooling systems.

Alberta’s government seeks to ensure Albertans benefit from AI data centres and is committed to ensuring economic growth and shared prosperity while ensuring Alberta continues to have the lowest taxes in Canada and is competitive across North America.

“Alberta is uniquely positioned to capture the AI data center opportunity, leveraging our vast natural gas resources and pro-business environment to create thousands of high-quality jobs and attract billions in investment. This strategy is not just about building infrastructure; it’s about fostering innovation and establishing Alberta as a hub for high-tech industries, driving economic growth and supporting critical public services like healthcare and education.”

Nate Glubish, Minister of Technology and Innovation

Alberta is committed to fostering innovation and ensuring technology development aligns with industry needs. The strategy was developed after extensive consultation with organizations and businesses in the AI space and market participants.

“For AI companies to build and scale in Alberta, they need access to computing power. Data centers are economic growth engines that provide the computing power AI companies need to develop and deploy their innovations. grow their companies and stimulate the local economies. Beyond its natural advantages, Alberta boasts a robust AI ecosystem anchored by world-class research and talent. Many of the algorithms the world’s data centers are running on have been pioneered by Amii researchers right here in Alberta. The opportunity for those companies to be close to the source of some of the leading AI research gives them a competitive advantage in being at the forefront of what is coming next.”

Cam Linke, CEO, Alberta Machine Intelligence Institute (amii)

Quick facts

Over the past several months, Technology and Innovation met with AI data centre builders and operators, power generators, natural resource sector participants, telecommunications companies and municipalities actively pursuing AI data centres.
AI data centre market size is anticipated to more than double by 2030 to more than $820 billion. (P&S Market Research)
Alberta Electricity System Operator (AESO) has 12 data centre projects on their project list totalling 6,455 MW of load.
Most of the power demand on the AESO project list is from data centers.
Currently there is about 1,000 MW of additional dispatchable generation over Alberta’s current needs. This amount is dynamic and may change due to factors such as generation retirements, outages, derates, or new additions.

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Alberta takes big step towards shorter wait times and higher quality health care

Published on April 9, 2025

Todayville Content Team

From the Fraser Institute

By Nadeem Esmail

On Monday, the Smith government announced that beginning next year it will change the way it funds surgeries in Alberta. This is a big step towards unlocking the ability of Alberta’s health-care system to provide more, better and faster services for the same or possibly fewer dollars.

To understand the significance of this change, you must understand the consequences of the current (and outdated) approach.

Currently, the Alberta government pays a lump sum of money to hospitals each year. Consequently, hospitals perceive patients as a drain on their budgets. From the hospital’s perspective, there’s little financial incentive to serve more patients, operate more efficiently and provide superior quality services.

Consider what would happen if your local grocery store received a giant bag of money each year to feed people. The number of items would quickly decline to whatever was most convenient for the store to provide. (Have a favourite cereal? Too bad.) Store hours would become less convenient for customers, alongside a general decline in overall service. This type of grocery store, like an Alberta hospital, is actually financially better off (that is, it saves money) if you go elsewhere.

The Smith government plans to flip this entire system on its head, to the benefit of patients and taxpayers. Instead of handing out bags of money each year to providers, the new system—known as “activity-based funding”—will pay health-care providers for each patient they treat, based on the patient’s particular condition and important factors that may add complexity or cost to their care.

This turns patients from a drain on budgets into a source of additional revenue. The result, as has been demonstrated in other universal health-care systems worldwide, is more services delivered using existing health-care infrastructure, lower wait times, improved quality of care, improved access to medical technologies, and less waste.

In other words, Albertans will receive far better value from their health-care system, which is currently among the most expensive in the world. And relief can’t come soon enough—for example, last year in Alberta the median wait time for orthopedic surgeries including hip and knee replacements was 66.8 weeks.

The naysayers argue this approach will undermine the province’s universal system and hurt patients. But by allowing a spectrum of providers to compete for the delivery of quality care, Alberta will follow the lead of other more successful universal health-care systems in countries such as Australia, Germany, the Netherlands and Switzerland and create greater accountability for hospitals and other health-care providers. Taxpayers will get a much better picture of what they’re paying for and how much they pay.

Again, Alberta is not exploring an untested policy. Almost every other developed country with universal health care uses some form of “activity-based funding” for hospital and surgical care. And remember, we already spend more on health care than our counterparts in nearly all of these countries yet endure longer wait times and poorer access to services generally, in part because of how we pay for surgical care.

While the devil is always in the details, and while it’s still possible for the Alberta government to get this wrong, Monday’s announcement is a big step in the right direction. A funding model that puts patients first will get Albertans more of the high-quality health care they already pay for in a timelier fashion. And provide to other provinces an example of bold health-care reform.

Nadeem Esmail

Senior Fellow, Fraser Institute

Alberta

Alberta’s embrace of activity-based funding is great news for patients

Published on April 9, 2025

Todayville

From the Montreal Economic Institute

Alberta’s move to fund acute care services through activity-based funding follows best practices internationally, points out an MEI researcher following an announcement made by Premier Danielle Smith earlier today.

“For too long, the way hospitals were funded in Alberta incentivized treating fewer patients, contributing to our long wait times,” explains Krystle Wittevrongel, director of research at the MEI. “International experience has shown that, with the proper funding models in place, health systems become more efficient to the benefit of patients.”

Currently, Alberta’s hospitals are financed under a system called “global budgeting.” This involves allocating a pre-set amount of funding to pay for a specific number of services based on previous years’ budgets.

Under the government’s newly proposed funding system, hospitals receive a fixed payment for each treatment delivered.

An Economic Note published by the MEI last year showed that Quebec’s gradual adoption of activity-based funding led to higher productivity and lower costs in the province’s health system.

Notably, the province observed that the per-procedure cost of MRIs fell by four per cent as the number of procedures performed increased by 22 per cent.

In the radiology and oncology sector, it observed productivity increases of 26 per cent while procedure costs decreased by seven per cent.

“Being able to perform more surgeries, at lower costs, and within shorter timelines is exactly what Alberta’s patients need, and Premier Smith understands that,” continued Mrs. Wittevrongel. “Today’s announcement is a good first step, and we look forward to seeing a successful roll-out once appropriate funding levels per procedure are set.”

The governments expects to roll-out this new funding model for select procedures starting in 2026.

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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, 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.