Alberta's Barrhead County Moves to Allow Data Centers on Agricultural Land
February 3, 2026
A Canadian municipality is taking a significant step to attract data center investment by revising its zoning laws, highlighting a broader trend in Alberta to leverage its energy resources for digital infrastructure growth. The move underscores the province's strategy to position itself as a competitive hub for power-intensive computing, including artificial intelligence and cryptocurrency mining, by facilitating on-site power generation, particularly from natural gas. The County of Barrhead in Alberta has proposed an amendment to its land-use bylaw that would permit data center and high-performance computing facilities on agricultural land. The council gave the amendment a first reading with a unanimous 5-0 vote, and a public hearing is scheduled for February 3. The proposal was initiated following a request from UAE-based petroleum firm Axiom Oil and Gas, which plans to co-locate a roughly 6-megawatt modular natural gas power plant with a data center near its existing facility in Manola. The initial workload for the facility is reported to be Bitcoin mining. Currently, the county's bylaws define but do not permit data processing facilities in any zone, meaning applications are automatically rejected. "If an application were received for a data processing facility, we wouldn’t even be able to consider it," said County Development Officer Layne Mullen. The amendment would make data centers a discretionary use in agricultural districts, allowing planning authorities to evaluate each project based on site-specific conditions, infrastructure, and community impact. "This gives the authority the ability to look at each application on a site-by-site basis and determine if it’s appropriate for that location," Mullen added. The revised bylaw includes provisions for time-limited permits, setback requirements from residences, and mandates for noise assessments and mitigation plans for dust, traffic, and odor. Axiom has indicated that other Alberta municipalities, including Westlock, Sturgeon, and Beaver counties, have already adopted similar rules. The company argues such projects support local development by monetizing stranded natural gas, reducing flaring, and generating new tax revenue and economic activity. The amendment aligns with provincial efforts to promote data center and AI facilities. After municipal approval, the proposal would require final authorization from the Alberta Utilities Commission. The potential zoning change reflects Alberta's aggressive push to become a major data center destination, capitalizing on its ample land and power resources. Approximately 29 data center projects are currently seeking grid connections in the province. This initiative follows recent provincial legislation designed to incentivize self-powered data center developments. The policy shift has already spurred a wave of proposals, ranging from small-scale modular deployments, like a planned 3MW natural gas-powered facility, to larger agreements such as Crusoe's partnership to develop multiple AI data centers colocated with natural gas power plants.
Source: datacenterdynamics
