Presented by Invest Alberta

Organizations across the globe are racing to realize the promise and power of generative AI – but these data-hungry gen AI initiatives have a very short time to realize value, and too few data centers that meet their evolving needs. Unfortunately, legacy data centers aren’t up to the task. The total storage capacity required in data centers will more than double by 2027. Plus, advanced computing requires enormous amounts of processing power.

To meet the demand, data centers will be increasing their rack density at a compound annual growth rate (CAGR) of 7.8%. That means hundreds of servers, thousands of processing units, demanding a huge amount of energy and generating a great deal of heat. And this exponential increase in energy consumption emphasizes the need to scale data demands in an environmentally sustainable way, greatly influencing strategic site selection.

The focus now is on emerging markets that offer low-cost sustainable energy, an educated local workforce, connectivity, an affordable cost of living – and a large and growing pool of potential customers. Alberta, Canada stands out among competing jurisdictions on all fronts, which is why major tech corporations are sharpening their gaze on Alberta, Canada.

AWS recently invested an estimated $4 billion building three new data centers in Alberta. In fact, Alberta has become a global tech hub, attracting billions in investments from corporations around the world. In addition to Amazon and AWS, Dow, Eventcombo, Applexus Technologies, KKR and more have invested in Alberta. In 2022, the province experienced a record-breaking year for venture capital investment, with investors taking note of Alberta’s tech sector maturation. And all these organizations are on a hunt for AI resources.

“With these strengths, the future of data centres in the province of Alberta is positioned for continued growth and success for global data infrastructure,” says Rick Christiaanse, CEO at Invest Alberta, one of North America’s major investment attraction orgs.

Here’s a closer look at what’s bringing tech companies and the data centers they depend on knocking at Alberta’s door.

Leading Canada in data center investment

Today Alberta is one of Canada’s fastest-growing provinces. It’s proven to be a leader in energy, clean tech and agriculture, and aims to capitalize on its growth across the technology, financial services, aviation and logistics sectors, to ensure they continue to thrive. In fact, investors have committed nearly $20 billion and created and over 25,000 new jobs since 2020, and with good reason, Christiaanse says.

An abundance of talent

Alberta’s workforce is young, diverse and growing at a faster rate than anywhere in Canada. The province also boasts one of North America’s youngest workforces with the highest proportion of workers under the age of 45 in Canada, and 64.8% of Albertans have a post-secondary education. Almost 100,000 of that workforce are in tech, and that number is expected to grow thanks to Alberta’s post-secondary institutions, which are the third-largest suppliers of STEM graduates in the country. From 1970 to 2023, the total number of publications on AI and machine learning produced by the University of Alberta places it fifth worldwide, ahead of universities such as MIT, University of Toronto, and Peking University.

Global connections

Not only is Alberta well-connected on the ground, via two of the country’s largest airports and two transcontinental rail carriers, 15 free trade agreements open up access to global markets. The number of multinational companies that operate in the province offer a strong global network, as does Invest Alberta’s Global Team, repping Alberta’s presence across the world. And on the technology side, Alberta made a $390 million commitment to ensure broadband access to 100% of the province by 2026. 

Cost of doing business

Alberta has the lowest tax rates in Canada, with no provincial or payroll taxes, some of the lowest corporate income taxes in Canada, and lower corporate taxes than 44 U.S. states. By cutting red tape to lessen the burden on job creators, streamlining approvals and lowering those taxes, Alberta is creating the best possible pro-business environment for businesses and investors. In fact, for every regulatory requirement added in the last four years, four have been eliminated, resulting in a cumulative red tape reduction total of nearly 33% and counting.

Affordable, sustainable energy

Alberta is a global energy leader.In North America, Alberta leads in renewable, geothermal and cleantech energy investment -- since July 2019, more than $2 billion of renewable power developments have been established. Meanwhile, the province has also reduced emissions from electricity generation by 60% from 2005 levels by phasing out emissions from coal-fired power.

“In Alberta, we believe responsible and sustainable development is crucial to global environmental stewardship, positive change and global governance,” Christiaanse says.

Fueling that renewable power boom

Alberta is home to the only deregulated electricity market in Canada, which allows developers to sign long-term power purchase agreements with major outside vendors. The province also has no electricity debt, which makes its power far more available and affordable – especially when compared to other large urban areas.

Even better, Alberta’s naturally cool climate helps reduce cooling costs, which can account for up to 30% of operating costs.

An ideal location for investment

“Alberta is Canada’s headquarters for big thinkers and innovators fueled by smart people and diverse industries working to solve global challenges,” Christiaanse says. “Our strong economy, coupled with our collaborative and business-friendly environment, access to key global markets and young, educated talent pool make Alberta an ideal location for investment.”

Invest Alberta was specifically launched to provide high-end, tailored support to companies and investors, enabling them to seamlessly navigate the development of projects, which has been critical to investment success in Alberta. Their goal is to expedite investment in the province, bring the right people to the table, and go the extra mile to help Alberta businesses grow, scale and succeed for the long haul.

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