Alberta Proposes Fast-Track Approvals for Self-Powered Data Centers December 1, 2025 The Canadian province of Alberta has introduced new legislation aimed at attracting data center investment while safeguarding its electrical grid from the immense power demands of modern computing, particularly from artificial intelligence. The proposed Bill 8, the Utilities Statutes Amendment Act, 2025, seeks to create a formal framework for "self-powered" data center developments. Under the proposed bill, data center operators would be offered a fast-track approval process if they commit to supplying their own electricity, either through direct power purchase agreements with generators or by building on-site generation facilities. This incentive is conditional on developers securing all necessary environmental, regulatory, and transmission permits before beginning operations. Government officials state the policy is designed to mitigate strain on the provincial grid while supporting the growth of a sector it values at a potential $100 billion over the next five years. The legislative move follows an interim plan launched in June by the Alberta Electric System Operator to manage a surge in connection requests. That plan aims to connect up to 1.2 gigawatts of new large-load projects by 2028, a limit set to preserve overall grid reliability. Currently, approximately 29 data center projects are seeking grid connections in the province. The rapid growth prompted Premier Danielle Smith to mandate last year that new data centers must "bring [their] own electricity, bring [their] own generation." This policy has already spurred activity, ranging from small-scale modular deployments, like a 3-megawatt natural gas-powered unit planned by Radiant Ridge Energy, to larger agreements such as Crusoe's partnership with Kalina Distributed Power to develop multiple AI data centers colocated with natural gas plants. The scale of interest in Alberta reflects a broader national trend, with research firm DC Byte reporting Canada's total data center development pipeline at nearly 9 gigawatts. If passed, the amendments will come into force on various dates, with key components of the restructured energy market expected to begin implementation in 2027. The legislation positions Alberta as a competitive destination for capital-intensive data center projects, but one that explicitly shifts the burden of new power generation away from the public grid and onto private developers. Source: datacenterdynamics
Alberta Proposes Fast-Track Approvals for Self-Powered Data Centers
