Data centres don't necessarily belong to companies like Meta and Amazon, though many do. The trend is to build data centres that "rent" space to companies that need it, like banks, shipping companies and larger corporations who need it. This is a very new game, and there is lots of interest for big money to run into the pool to play. It kind of reminds me of when they made pot legal in Canada.....everyone and their dog wanted to be a part of it. And there were a lot of failures as a result of that...more on that in a moment.
So let's break down this report today.
According to a report published by The Narwhal today, a leaked document labelled a “cabinet report” lays out a sweeping plan to expand natural-gas infrastructure in Alberta in order to support both increased oil and gas production and the province’s push to attract massive AI data centres. They recommend changing legislation, creating new Crown corporations and potentially giving the Alberta government a much larger role in the natural-gas pipeline business. Sounds a little like "socialism", no? Maybe UCP supporters don't like that.
This is so much bigger than AI. We all know that the government is begging for these centres and we all know they will suck a ton of energy. Right now, new AI data centres can't access the grid because there simply isn't enough power, and they require new plants to build their own power plants, with natural gas. So the big question is where is this gas coming from and who is building the pipelines?
Here is where it gets interesting? TC energy doesn't want to play ball and invest all this money for new pipelines and isn't giving the government what it wants. So the Alberta government wants to take some crazy measures. The big idea is to give the federal government the middle finger and wrestle regulatory control over pipelines and create a crown corporation to build new pipelines with taxpayer dollars so the friends of the UCP with their data centres do not have to build their own pipelines. I am sure there are many Government of Alberta tax breaks, grants and loans that will not be too far behind.
In other words, Alberta taxpayers are going to foot the bill for it all. You and I will take all the legal and financial risk, so Danielle Smith and her corporate friends can profit. And this is where my mention of making pot legal comes into play. There will be failures in this AI data centre business, and it will be ugly. Government funding will go down the sewer all over the place.
The leak says it will cost more than $162 million just for the crown corporation itself...before anything is built. You could have a referendum for that kind of money in this province. There is also mention of a $6 billion pipeline. Paid for by Alberta taxpayers. Oh, and that doesn't include the lawsuits and legal challenges that will run in the tens of millions of dollars.
....But wait, there is more! (I always wanted to say that)
Turns out that the report also says there could be a 100% increase in the price of natural gas and a 25% increase in the price of electricity as a result of these centres. So not only can you enjoy the sound of a data centre in your area, not only will you know they are sucking up our precious water, but you will have a massive increase in your utility cost. And when they close down, there will be a giant empty space that no one will ever reclaim, and that we will be paying the infrastructure for, for years to come.
As the report points out, we may be "sensitive to any change in perceived affordability". It doesn't matter if you are left, or right, UCP or NDP or Tory or Green or Communist or a separatist. This affects us all.