Premier Danielle Smith is expressing strong confidence in Alberta's ambitious goal to attract $100 billion in data centre development within five years, citing a recent major shift in federal energy policy as a key catalyst.
Regulatory Hurdle Removed, Path Cleared for Gas
The pivotal change came in late November 2025 with a new memorandum of understanding between Ottawa and Alberta. A central component was the federal government's suspension of its Clean Electricity Regulations (CER), rules that Alberta and industry players viewed as a significant barrier to new investment in gas-fired electricity generation.
"That was our biggest barrier. There was no way that anyone was going to develop new gas-fired generation if they face the prospect of having to turn it off in 2035," Smith stated in a year-end interview.
The premier emphasized that data centres require a constant, reliable power source, something intermittent renewables like wind and solar cannot solely provide. "The big thing about data centres is they cannot rely on intermittent power... If you want to move quickly, all roads lead to natural gas," Smith said, adding she hopes to see more project announcements in the coming months.
Immediate Industry Response and Project Pipeline
The provincial government is already in discussions with proponents looking to build the gas-fired electricity generation needed to power these massive computing facilities. The response from the energy sector has been swift and positive since the MOU was signed.
Alberta's Minister of Affordability and Utilities, Nathan Neudorf, reported a surge in interest. "Within two days, I heard of nearly $6 billion of projects being kicked around, and now... we're expecting that could reach $18 billion and growing. And that's just the generation side," Neudorf said.
He believes the suspension of the CER, which was designed to reduce electricity sector emissions starting in 2035 and set a lifespan for gas plants, makes the province's $100-billion target much more realistic. "It becomes a lot more real... we may not get all of the way there, but we're going to see significant positive investment within the province of Alberta," Neudorf added.
Existing Demand and Future Growth
The potential for growth is underscored by existing market demand. More than 30 proposed projects, representing almost 20 gigawatts (GW) of potential electrical load, have already applied to connect to Alberta's transmission system. This massive demand highlights the critical need for new, dependable baseload power generation.
The federal-provincial agreement also included Alberta's commitment to increase its industrial carbon price, creating a framework that both sides could support. With the regulatory uncertainty of the CER now sidelined, the province is positioning its abundant natural gas resources as the ideal fuel to power the digital economy's next wave of infrastructure.
