By JPxG - DALL-E 3, Public Domain, https://commons.wikimedia.org/w/index.php?curid=144161107
EDMONTON — Alberta is proposing changes to Bill 8 that would open new pathways for powering artificial intelligence data centres by allowing developers to bring their own electricity generation. The government says the amendments to the Utilities Statutes Amendment Act, 2025 are aimed at meeting the rising energy demand created by AI technologies while protecting the reliability and affordability of the provincial power grid.
Affordability and Utilities Minister Nathan Neudorf said the legislation would accelerate approvals for data centres that supply their own power and ensure they cover the cost of any transmission upgrades tied to their grid connections. He said Alberta’s cooler climate, available expertise and investment-friendly environment already make the province an attractive destination for developers. The proposed changes, he added, would help Alberta lead what he called the next technological revolution.
Data centres focused on AI are expected to consume between 100 MW and 1,400 MW of electricity, levels comparable to the total demand of major cities such as Calgary or Edmonton. The Alberta Electric System Operator has already allocated 1,200 MW to proposed projects through an interim connection process and is developing a long-term framework for integrating large industrial loads. AESO president and CEO Aaron Engen said Bill 8 would give the operator more flexibility by allowing developers to supply net power to the grid.
The bill also builds on market reforms passed earlier this year to support the implementation of the Restructured Energy Market, which is scheduled to begin in 2027. Neudorf said the changes are intended to ensure the electricity system can adapt to rapid technological shifts while continuing to serve both traditional industries and emerging sectors. He said Alberta must keep its utilities reliable, affordable and sustainable as demand grows.
Industry groups welcomed the direction. Mark Plamondon of Alberta’s Industrial Heartland Association said clear rules and faster approvals will help attract investment, while Enmax president and CEO Mark Poweska said the legislation is a key step toward modernizing Alberta’s electricity system. Both said the changes could encourage innovation and support long-term reliability.
The amendments also propose updates to Alberta’s electricity transmission policy and measures allowing the province to move ahead with a hydrogen-blended natural gas regulatory framework. The government says these steps will encourage more efficient use of existing infrastructure and help integrate new technologies as Alberta’s energy system evolves.
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