One province is treating electricity like a strategic resource. The other is betting that a market already under pressure can absorb the equivalent of another city showing up overnight.
If I were an Albertan I'd be very nervous. I recall instances of deregulated electrical systems in Texas where costs went through the roof due to unexpected surges in demand. Regardless of cheap promises made by MAGA Smith, I'd insist on a written legal contract that residential consumer rates will be locked in until the new power plants come online. On the flipside, why isn't META building their own power source like is happening in many US communities.
In some places, large data centres are being required... or choosing... to build dedicated generation or long-term power agreements to reduce pressure on the public grid.
If a project this large depends on shared infrastructure, it's reasonable for Albertans to ask who carries the risk if demand grows faster than supply.
The UK is an example of what happens to energy bills when fuel sources vary..the Guardian had a surprising article on how the cost is shared by all not just the high consumer’s. Seems that country has a few hard lessons Alberta could learn from
As a kid, we often spent summers in Florida. I remember the (retired) neighbours bemoaning when the nuclear power plant needed to go offline for a month or two for routine maintenance every second year or so. Electricity bills skyrocketed during those times, while the state fired up coal plants or imported from other states. With data centres, it almost always boils down to three things: How to power them, how to cool them, and noise pollution/lost farmland/other complicating factors specific to the area.
Data centres aren't just rows of computers... they're massive infrastructure projects with real impacts on power, water, land use, and nearby communities.
AI isn't going away, so the challenge is making sure we build enough capacity first instead of asking everyone else to absorb the costs afterward.
The info on data centres for citizens is minimal to date and everyone is learning from communities currently dealing with data centre 'neighbours'. They are electricity hogs; they also consume tremendous volumes of water for cooling - even with closed-loop systems (although CDN winters may be beneficial for cooling?); they require huge amounts of fibre, usually fed underground; they 'hum' when in operation and emit a light 'glow'; they cost billions to build but most of the equipment/bldg components are manufactured elsewhere (modular construction) so local construction employment is limited; once operational the only employees are operations & maintenance folks for the computer equipment and the building & systems - so they don't produce much employment. Property tax?? - highly dependent on the 'deals' made by municipalities or Provinces to attract data centres. If the existing grid has capacity, they may connect but the demand is so extreme there may be competition for power and it seems data centres are first in line - dependent on 'promises' made by municipalities/provinces before hand. AB citizens need to ask a lot more questions and demand "proof". Keep in mind, Smith promised no one would ever pay out of pocket for healthcare - ummm - we know how that worked out.
If I were an Albertan I'd be very nervous. I recall instances of deregulated electrical systems in Texas where costs went through the roof due to unexpected surges in demand. Regardless of cheap promises made by MAGA Smith, I'd insist on a written legal contract that residential consumer rates will be locked in until the new power plants come online. On the flipside, why isn't META building their own power source like is happening in many US communities.
You raise a fair question, Frank.
In some places, large data centres are being required... or choosing... to build dedicated generation or long-term power agreements to reduce pressure on the public grid.
If a project this large depends on shared infrastructure, it's reasonable for Albertans to ask who carries the risk if demand grows faster than supply.
The UK is an example of what happens to energy bills when fuel sources vary..the Guardian had a surprising article on how the cost is shared by all not just the high consumer’s. Seems that country has a few hard lessons Alberta could learn from
That's a good comparison, Shelley.
The UK has learned that when electricity systems come under pressure, the costs often spread far beyond the biggest users.
That's why getting the policy right before demand explodes matters.
Alberta has an opportunity to learn from others instead of paying tuition through higher bills.
Sadly, as I live in Alberta, we will learn nothing.
As a kid, we often spent summers in Florida. I remember the (retired) neighbours bemoaning when the nuclear power plant needed to go offline for a month or two for routine maintenance every second year or so. Electricity bills skyrocketed during those times, while the state fired up coal plants or imported from other states. With data centres, it almost always boils down to three things: How to power them, how to cool them, and noise pollution/lost farmland/other complicating factors specific to the area.
Good points, Grant.
Data centres aren't just rows of computers... they're massive infrastructure projects with real impacts on power, water, land use, and nearby communities.
AI isn't going away, so the challenge is making sure we build enough capacity first instead of asking everyone else to absorb the costs afterward.
The info on data centres for citizens is minimal to date and everyone is learning from communities currently dealing with data centre 'neighbours'. They are electricity hogs; they also consume tremendous volumes of water for cooling - even with closed-loop systems (although CDN winters may be beneficial for cooling?); they require huge amounts of fibre, usually fed underground; they 'hum' when in operation and emit a light 'glow'; they cost billions to build but most of the equipment/bldg components are manufactured elsewhere (modular construction) so local construction employment is limited; once operational the only employees are operations & maintenance folks for the computer equipment and the building & systems - so they don't produce much employment. Property tax?? - highly dependent on the 'deals' made by municipalities or Provinces to attract data centres. If the existing grid has capacity, they may connect but the demand is so extreme there may be competition for power and it seems data centres are first in line - dependent on 'promises' made by municipalities/provinces before hand. AB citizens need to ask a lot more questions and demand "proof". Keep in mind, Smith promised no one would ever pay out of pocket for healthcare - ummm - we know how that worked out.