AESO plan would limit data centre grid hookups to gas power

The Alberta Electric System Operator has proposed that data centres seeking a grid connection in the province be powered only by natural gas, a plan that solar, battery and environmental groups say shuts out cheaper and cleaner options, CTV News Edmonton reported on Oct. 10.

The proposal is part of a bring-your-own-generation approach for large power users. CTV reported that the grid operator argues gas plants provide round-the-clock reliability and can operate as an electrical island, and that renewable, hybrid and stand-alone battery projects would be excluded.

Demand from the sector is far larger than what the grid can serve. The Alberta government’s data centre figures page shows about 19,565 megawatts of new data centre load was on the system operator’s large-load list as of July 30, and notes that requests are not approvals.

The system operator’s first-phase limit of 1,200 MW for new large loads is now fully allocated, the province says. Alberta’s total installed generation capability is 23,393 MW, and the record peak demand was 12,785 MW, set on Dec. 11, 2025.

Meta holds 970 MW of that first-phase allocation for its Sturgeon County campus, which the province says will draw 1,800 MW at full build-out from the grid and on-site generation. Pembina Pipeline and its partners made a final investment decision on the $4.6-billion, 932-MW Greenlight gas plant on July 2. We reported earlier that the data centre would arrive years before its power plant.

Utilities Minister RJ Sigurdson defended the approach, CTV reported, pointing to Alberta’s abundant natural gas and the need for dependable, around-the-clock supply. He said companies must model emissions and meet the province’s ambient air quality objectives.

Heather MacKenzie, executive director of Solar Alberta, called the plan short-sighted, according to CTV, and pointed to Germany and Ireland as places that encourage renewable-powered data centres.

Energy Storage Canada urged the system operator to allow eight-hour battery storage. Policy manager Robert Tremblay said extreme demand events in the region have rarely lasted more than seven hours in the past decade, CTV reported.

David Pickup, director of electricity at the Pembina Institute, argued that a technology-neutral approach would lower costs and emissions. He warned the Meta gas plant alone could account for about 10 per cent of Alberta’s electricity emissions, CTV reported.

For Albertans, the decision matters because new gas plants built for data centres add emissions that critics say would erode gains from the 2024 coal phase-out, while supporters say firm power protects grid reliability. Whether the rule becomes final has not been confirmed by the system operator or the province. National Observer reported in August that Alberta was moving to keep data centres off renewable power.

The grid operator’s data centre queue is also drawing attention from other developers looking at Canada. OpenAI has reportedly eyed Canadian sites as grid space tightens.

If you find reporting like this useful, consider supporting Canada News Media, an independent Canadian newsroom with no corporate parent.

Sources: CTV News Edmonton; Government of Alberta; National Observer.