Latest news with #AESO
Calgary Herald
3 days ago
- Business
- Calgary Herald
Edmonton area First Nations chiefs call for provincial rethink on data centre policy
Four Edmonton area First Nations chiefs have sent a letter to the Alberta government criticizing the province's electric system operator for its new policy that would for now limit the capacity of large AI data centres, an industry in which they are eager to take part. Article content Chiefs of Alexander First Nation (40 km northwest of Edmonton), Alexis Nakota Sioux Nation (85 km northwest of Edmonton), Paul First Nation (65 km west of Edmonton), and Enoch Cree Nation (135 south of Edmonton, one of four bands at Maskwacis), and Alexis Nakota Sioux Nation (85 km northwest of Edmonto), sent a letter on Thursday commending the province for positioning Alberta at the forefront of the industry and emphasizing their desire to be stakeholders and potential investors in new artificial intelligence (AI) data centres. However, they said the Alberta Electric System Operator's (AESO) interim policy to limit power capacity for large data centres is 'inconsistent' with the province's long-term goals. Article content Article content Article content Data centres are huge facilities housing the computing firepower needed for artificial intelligence and other applications. It can take an enormous amount of power to run and cool them. The chiefs say the amount of power the AESO has allotted to new projects falls short of what is needed to attract and retain the interest of big tech. Article content Article content 'While the release of this allocation methodology is a long-awaited milestone that provides some much-needed clarity, the approach appears fundamentally inconsistent with Alberta's stated policy objectives of attracting large hyperscalers and catalyzing a data centre industry at scale,' the letter said. Article content 'In simple terms, Alberta's current framework is capping our potential at the very moment we should be unleashing it.' Article content AESO's interim policy was announced at the beginning of June and would enable connections up to 1,200 megawatts for all large load projects between 2025 and 2028. Article content Article content Maximum load Article content Article content In a statement to Postmedia, AESO said 1,200 MW is the maximum load that can be quickly connected to Alberta's grid without negatively impacting its reliability. Beyond the number, the grid reliability would face 'greater and greater risks.' Article content 'Those MWs were fairly allocated to developers with the most mature data centre projects based on where they stood in the AESO's connection process,' the statement said. Article content 'Meeting future demand will require new generation and, potentially, infrastructure investment. As the Independent System Operator, the AESO is working closely with government and industry to evaluate those solutions.' Article content AESO said the approach is a response to a surge in data centre requests, with 29 proposed projects representing more than 16 gigawatts (GW) of demand seeking grid connections.
Edmonton Journal
3 days ago
- Business
- Edmonton Journal
Edmonton area First Nations chiefs call for provincial rethink on data centre policy
Article content Four Edmonton area First Nations chiefs have sent a letter to the Alberta government criticizing the province's electric system operator for its new policy that would for now limit the capacity of large AI data centres, an industry in which they are eager to take part. Chiefs of Alexander First Nation (40 km northwest of Edmonton), Alexis Nakota Sioux Nation (85 km northwest of Edmonton), Paul First Nation (65 km west of Edmonton), and Enoch Cree Nation (135 south of Edmonton, one of four bands at Maskwacis), and Alexis Nakota Sioux Nation (85 km northwest of Edmonto), sent a letter on Thursday commending the province for positioning Alberta at the forefront of the industry and emphasizing their desire to be stakeholders and potential investors in new artificial intelligence (AI) data centres. However, they said the Alberta Electric System Operator's (AESO) interim policy to limit power capacity for large data centres is 'inconsistent' with the province's long-term goals.
Hamilton Spectator
5 days ago
- Business
- Hamilton Spectator
First Nations say Alberta data centre approach won't attract big tech players
CALGARY - The chiefs of four First Nations in Alberta say they're eager to take part in the province's nascent data centre industry, but argue the province is taking the wrong approach to attract large-scale tech players. The chiefs of the Alexander First Nation, Paul First Nation, Enoch Cree Nation and Alexis Nakota Sioux Nation outlined their concerns this week in an open letter to Premier Danielle Smith and members of her government. 'There are shovel-ready proposals backed by major industry players aligned with government objectives that will be left stranded without a change in proposed policy,' the chiefs wrote. 'Alberta should be a premier destination for hyperscale data centre investment. But strengths only matter if we act on them. Right now, Alberta's ability to execute and deliver on its promise is in question.' Data centres are huge facilities housing the computing firepower needed for artificial intelligence and other applications. It can take an enormous amount of power to run and cool them. The chiefs say the amount of power the Alberta Electric System Operator has allotted to new projects falls short. The Alberta Electric System Operator said earlier this month that it has received requests from 29 proposed data centre projects representing more than 16,000 megawatts — more than 11 times the City of Edmonton's load. It said it will allow the connection of up to 1,200 megawatts of large load projects between now and 2028. 'Alberta has never seen this level and volume of load connection requests,' said AESO CEO Aaron Engen. 'As the system operator, we are responsible for ensuring that new project connections do not compromise grid reliability. Because connecting all large loads seeking access would impair grid reliability, we established a limit that preserves system integrity while enabling timely data centre development in Alberta.' The Alberta government has set a goal of attracting $100 billion in data centre investment over five years. But the chiefs wrote that the limit sends the wrong signal to tech powerhouses like Meta and Amazon. 'The hyperscalers 'don't build small.' They think in gigawatts, because their global operations require that scale,' they wrote. 'Under the current proposal, not even one such flagship project may be fully realized here without years of delay, since 1,200 megawatts total divided among many projects signals that Alberta isn't prepared to accommodate a true hyperscaler's needs. 'This sends an unintended but clear message to investors that Alberta's actions do not match its ambitions.' The Alberta government supports the 'balanced approach' the AESO is taking, said the press secretary for Affordability and Utilities Minister Nathan Neudorf. 'Alberta aims to be the destination of choice for AI data centres in North America,' Ashli Barrett said in a written statement. 'At the same time, our government will always put the well-being of Albertans first and ensure data centre projects will not compromise the affordability or reliability of the electricity that millions of Albertans, First Nations, and our local industries depend on.' Barrett added the 1,200-megawatt limit is short-term and should not be thought of as a cap. 'It will enable data centre projects in advanced stages of planning and development to get started, while government works to develop a long-term framework for data centres, which will provide additional pathways for data centres projects to meet their power needs, including encouraging them to bring their own power.' Chief Tony Alexis of the Alexis Nakota Sioux Nation northwest of Edmonton said his community is looking at taking an equity stake in a project, and discussions are in the early stages. He said First Nations want more than to be consulted — they are ready to invest. 'Our nations have been growing. We've got young populations and this industry can bring some real training, some jobs, some long-term prosperity for our community,' Alexis said in an interview. 'Alberta is aiming for a championship-level digital economy. We just need the stadium doors open wide enough so that the star players can participate and everyone wins.' This report by The Canadian Press was first published June 27, 2025.
Global News
5 days ago
- Business
- Global News
First Nations say Alberta data centre strategy won't attract big tech players
The chiefs of four First Nations in Alberta say they're eager to take part in the province's nascent data centre industry, but argue the province is taking the wrong approach to attract large-scale tech players. The chiefs of the Alexander First Nation, Paul First Nation, Enoch Cree Nation and Alexis Nakota Sioux Nation outlined their concerns this week in an open letter to Premier Danielle Smith and members of her government. 'There are shovel-ready proposals backed by major industry players aligned with government objectives that will be left stranded without a change in proposed policy,' the chiefs wrote. 'Alberta should be a premier destination for hyperscale data centre investment. But strengths only matter if we act on them. Right now, Alberta's ability to execute and deliver on its promise is in question.' Data centres are huge facilities housing the computing firepower needed for artificial intelligence and other applications. It can take an enormous amount of power to run and cool them. The chiefs say the amount of power the Alberta Electric System Operator has allotted to new projects falls short. Story continues below advertisement The Alberta Electric System Operator said earlier this month that it has received requests from 29 proposed data centre projects representing more than 16,000 megawatts — more than 11 times the City of Edmonton's load. It said it will allow the connection of up to 1,200 megawatts of large load projects between now and 2028. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Alberta has never seen this level and volume of load connection requests,' said AESO CEO Aaron Engen. 'As the system operator, we are responsible for ensuring that new project connections do not compromise grid reliability. Because connecting all large loads seeking access would impair grid reliability, we established a limit that preserves system integrity while enabling timely data centre development in Alberta.' The Alberta government has set a goal of attracting $100 billion in data centre investment over five years. Story continues below advertisement But the chiefs wrote that the limit sends the wrong signal to tech powerhouses like Meta and Amazon. 'The hyperscalers 'don't build small.' They think in gigawatts, because their global operations require that scale,' they wrote. 'Under the current proposal, not even one such flagship project may be fully realized here without years of delay, since 1,200 megawatts total divided among many projects signals that Alberta isn't prepared to accommodate a true hyperscaler's needs. 'This sends an unintended but clear message to investors that Alberta's actions do not match its ambitions.' The Alberta government supports the 'balanced approach' the AESO is taking, said the press secretary for Affordability and Utilities Minister Nathan Neudorf. 'Alberta aims to be the destination of choice for AI data centres in North America,' Ashli Barrett said in a written statement. 'At the same time, our government will always put the well-being of Albertans first and ensure data centre projects will not compromise the affordability or reliability of the electricity that millions of Albertans, First Nations, and our local industries depend on.' Barrett added the 1,200-megawatt limit is short-term and should not be thought of as a cap. 'It will enable data centre projects in advanced stages of planning and development to get started, while government works to develop a long-term framework for data centres, which will provide additional pathways for data centres projects to meet their power needs, including encouraging them to bring their own power.' Story continues below advertisement Chief Tony Alexis of the Alexis Nakota Sioux Nation northwest of Edmonton said his community is looking at taking an equity stake in a project, and discussions are in the early stages. He said First Nations want more than to be consulted — they are ready to invest. 'Our nations have been growing. We've got young populations and this industry can bring some real training, some jobs, some long-term prosperity for our community,' Alexis said in an interview. 'Alberta is aiming for a championship-level digital economy. We just need the stadium doors open wide enough so that the star players can participate and everyone wins.'
Globe and Mail
6 days ago
- Business
- Globe and Mail
First Nations express concern about Alberta's data-centre strategy in open letter to province
A group of First Nations communities in Alberta is criticizing the province's electrical grid operator for how it will allot scarce power to proposed data centres, saying the approach undermines the goal of attracting the large facilities necessary for artificial-intelligence applications. Four First Nations chiefs wrote an open letter to Premier Danielle Smith and other government members on Thursday arguing the methodology used by the Alberta Electric System Operator (AESO) 'risks pitting smaller entities against each other for an insufficient share' of electricity. 'Alberta's current framework is capping our potential at the very moment we should be unleashing it,' the letter states. The letter was signed by the chiefs of Enoch Cree Nation, Alexis Nakota Sioux Nation, Alexander First Nation and Paul First Nation. Some proposed data centres in the province are located on the First Nations' territory. 'We're not on the sidelines. We are ready to invest and to help build,' said Chief Tony Alexis of Alexis Nakota Sioux Nation in an interview. In December, the provincial government launched an AI data-centre strategy to entice companies to build in Alberta, emphasizing its abundant natural gas resources for power generation. Alberta wants to attract massive data centres to power generative AI. But current infrastructure can't handle their near-endless demand for electricity The sales pitch may have worked too well. There are 29 projects requesting to be connected to more than 16,000 megawatts of electricity, which exceeds the peak consumption in Alberta. AESO said earlier this month it had identified 15 projects for consideration to connect to the grid, and that qualifying developers will receive a pro rata share of a total of 1,200 megawatts through to 2028. To qualify, developers have to show proof of financial security and letters of support from communities in which they intend to operate. 'The current policy slices new power capacity into portions too small for global tech giants,' Mr. Alexis said. Companies such as Microsoft MSFT-Q, Amazon AMZN-Q and Meta Platforms META-Q are among the biggest developers of AI, and require energy-hungry data centres to build and run the technology. By spreading out electricity among too many projects, the First Nations chiefs contend that Alberta may not be able to attract these companies. Canada's first AI Minister Evan Solomon on his plan to scale up the industry Paul Poscente, chief executive of Axxcelus Capital Advisory and investment adviser to Alexis Nakota Sioux Nation, said that AESO should rethink how it distributes electricity to allow for larger projects in the near-term. 'You need these big anchor tenants, at least one or two of them,' he said. 'We can provide for a bunch of these small guys in Phase 2.' The Premier's office referred a request for comment to the Minister of Affordability and Utilities. 'The short-term 1,200 megawatt limit is not a cap. It will enable data centre projects in advanced stages of planning and development to get started, while government works to develop a long-term framework,' wrote spokesperson Ashli Barrett in an e-mail, adding the government supports AESO's approach. Aaron Engen, the chief executive of AESO, said that even the large U.S. tech companies do not require massive amounts of electricity from the start. 'This concept that you've got to have 1,000 megawatts out of the gate or you've got nothing, it's not true,' he said. Companies can scale up over time, such as by building their own power generation or striking an agreement with an electricity producer. Mr. Engen said he had to keep the process fair as well. 'We as Albertans should be a little uncomfortable when the AESO or anybody in a position like us tries to pick winners and losers,' he said. AESO had to consider grid reliability and the potential cost of system upgrades to accommodate large electrical loads when devising its allotment strategy, Mr. Engen said, adding that it's looking at the next phase of development. 'It's about finding ways to facilitate everybody.' Capital Power LP CPX-T, which operates power generation assets in Canada and the U.S., made the same criticism as the First Nations chiefs earlier this month. The Edmonton-based company has a proposed data-centre campus for up to 1,500 megawatts, but could receive less than 250 megawatts under AESO's methodology. The provincial government, however, has been clear that its preference is for data-centre operators to supply their own power generation, so as not to overload the grid and ensure electricity prices remain stable. But some companies have argued that building new generation assets will take years, and there is a global race to build data centres for AI.
