Alberta has long been recognized as an energy powerhouse, fueling industry across the globe. As the digital age accelerates, the Edmonton Region is uniquely positioned to harness this expertise in a new kind of infrastructure — data centres. Coupled with its strong foundation in artificial intelligence (AI) research, the Region is at the forefront of powering the future of digital technology.
Data centres are the powerhouses that keep the internet running and our social media feeds flowing. As reliance on data collection and storage grows, so too does the need for data centres.
While they might seem like giant filing cabinets for the internet, they function as much more than that. Data centres are responsible for storing, processing, and distributing digital information. Essentially, they’re warehouses packed with computer equipment (hardware) that run the programs and servers (software) that power the digital world.
The demand for data centres is growing. Data centre capacity is expected to double every four years — in 2023, data centre capacity was 10.1 zettabytes (ZB), but is expected to be closer to 21 ZB by 2027.
A large portion of this growing demand is attributed to the growth of the artificial intelligence (AI) field, a sector where the Edmonton Region excels. As AI continues to evolve, requiring more sophisticated and powerful computing resources, the need for data centres that can support these demands has become critical.
The AI sector is projected to grow 37% every year and with that growth, the infrastructure that’s needed to support these complex learning models will have to follow suit. Data centres are the cornerstone of the infrastructure that supports AI, as they provide the essential space and computing power for AI development and machine learning.
The data centre industry faces a significant challenge: securing enough power to meet its growing needs. As data centres expand, their energy demands for servers and cooling systems will only increase.
Data centres constantly require energy to run servers and cooling systems that keep our digital world functioning. These facilities operate 24/7, making continuous power supply crucial. The Edmonton Region offers a key advantage with its ample, reliable electricity supply, supported by Alberta’s deregulated market and diverse energy market, providing flexibility to data centre operators.
A deregulated market allows companies in the Edmonton Region the freedom to generate their own power through behind-the-fence generation. Behind-the-fence power generation is the ability to produce and use your own energy, rather than relying on energy exclusively from the grid. Energy can be powered through various methods, include using renewables or natural gas cogeneration
With behind-the-fence energy generation, Alberta businesses have greater control over their energy sources and costs, enhancing operational efficiency and sustainability.
The Edmonton Region can also offer more sustainable energy options.
Alberta leads Canada in renewable projects and investments, with over 90% of the county’s wind, solar, and energy storage projects. Additionally, the Region’s potential for solar energy is among the highest in Canada. As one of the world’s lowest cost producers, Hydrogen is another potential source of low-carbon energy in the Edmonton Region.
With the Edmonton Region’s robust energy industry, data centre operators can take advantage of numerous green energy sources and government incentives to reduce their carbon footprint and align with global sustainability goals in a cost-effective way.
Beyond the access to clean and reliable energy sources the Edmonton Region boasts several geographic advantages for data centre operations. From stable geology that leaves the Region with low risk of earthquakes to the inland location that makes it unsuitable to hurricanes, the Region offers a safe and stable option.
Add to this the fact that 70% of the Region’s water remains unallocated, providing a vital resource for cooling and operational needs. Unallocated water means that 70% of the water that runs through the Region is available for use at any given time.
Other regions across the province see much less accessibility to water — for example, Calgary hasn’t issued new water licenses since 2010, and they face the potential to not be able to provide peak water usage past 2036.
Canada’s infamous colder weather is another advantage of the Region. While the Edmonton Region benefits from an average of 325 sunny days annually — making it ideal for solar energy generation — it also has one of the lowest numbers of days where cooling is required in North America, thanks to its colder climate.
Less time spent cooling the facility translates to substantial cost savings on energy bills and a reduced environmental footprint associated with high energy consumption for cooling.
The Edmonton Region stands out for its affordability.
With the lowest land costs among all major Canadian cities, the Region is a compelling option for businesses looking to establish or expand their operations without breaking the bank on real estate expenses.
The tax environment in the Edmonton Region is also business-friendly, with a 23% combined federal and provincial tax rate — the lowest in Canada and one of the lowest in North America. This low tax rate allows companies to optimize profitability and avoid high establishment and growth costs.
As the demand for digital infrastructure continues to rise, the Edmonton Region is uniquely positioned to become a global hub for data centres, particularly those supporting advanced technologies like artificial intelligence (AI). The Region’s strong expertise in AI research and development aligns seamlessly with the growing need for robust data centres that can power complex machine learning models.
With its abundant and reliable energy supply, favourable geographic conditions, and competitive operational costs, the Region offers a unique blend of advantages that make it an ideal location for data centre investment.
By leveraging its strengths in renewable energy, a deregulated market, and a cool climate, the Edmonton Region is positioned to offer sustainable and cost-effective solutions for data centre development.
“The Edmonton Region has the strongest potential to be a prime location for data centre investment in Canada,” Malcolm Bruce, Edmonton Global’s CEO, said. “From availability of water to low carbon energy infrastructure to the flexibility of power, we can offer all businesses, and especially data centres, a level of security and sustainability that few other places can.”
