The Alberta government is set to implement a new levy framework for large-scale data centres, which it says will boost investment and generate jobs in the province.
The framework was developed during a six-week consultation with industry stakeholders and builds on the Alberta Artificial Intelligence Data Centre Strategy from December 2024. Per the strategy, Alberta is an advantageous location for data centre development given its natural cooling efficiencies, low-cost electricity, and a competitive tax system.
As of December 31, 2026, a 2 percent computer hardware levy will be laid on grid-connected data centres of at least 75 megawatts, which will be formally be defined as designated industrial properties. The province will assess property values, and the land and buildings linked to data centres will be subject to municipal taxation.
Municipalities may grant property tax incentives or deferrals for a maximum of 15 years per current Municipal Government Act provisions. The levy will be entirely offset against provincial corporate income taxes; moreover, the levy will not impose additional tax burdens on data centres that become subject to Alberta’s corporate income tax once they start to turn a profit.
Alberta’s treasury board president and finance minister, Nate Horner, explained in a statement that the levy “ensures data centres pay their share for the infrastructure and services that support them.” This approach helps to stabilize businesses as new revenue is generated.
“Alberta’s government has a duty to ensure Albertans receive a fair deal from data centre investments. This approach strikes a balance that we believe is fair to industry and Albertans, while protecting Alberta's competitive advantage,” said Nate Glubish, minister of technology and innovation, in a statement.
An October 2024 study released by McKinsey & Company revealed that by 2030, data centre capacity demand could more than triple. In a May 2024 publication, Goldman Sachs indicated that artificial intelligence could spur a 160 percent uptick in global data centre energy consumption by 2030.