Analysis-Alberta pitches cheap natural gas for data center boom, at odds with Canada's clean power aims
Key takeaways
- Canada is the world s fifth-largest producer of natural gas, around 60% of which comes from Alberta.
- But a rapid expansion of data centers in Alberta would disrupt Canada s plans to power the AI boom using clean hydro, renewables and nuclear.
- Canada currently has only five functioning data centers at the so-called hyperscale level, demanding at least 50 megawatts of electricity capacity, equivalent to the power needs of a small city.
Analysis-Alberta pitches cheap natural gas for data center boom, at odds with Canada's clean power aims FILE PHOTO: Wildcat Hills Gas Extraction Plant near Cochrane · Reuters Amanda Stephenson Tue, June 9, 2026 at 5:10 PM GMT+7 5 min read NG=F By Amanda Stephenson
CALGARY, June 9 (Reuters) - Alberta is touting its abundant supply of cheap fossil fuels to entice tech companies to build data centers for the AI boom, a move that would undermine Canada s plan to link new data center development with clean energy expansion.
Canada is the world s fifth-largest producer of natural gas, around 60% of which comes from Alberta. As well as huge fossil fuel reserves, the western province boasts a cooler climate that can offset the cooling costs of data center infrastructure and plenty of available land. All that can make operating data centers more cost-efficient than in the United States, where they are facing pushback from communities and lawmakers.