Federal data centre framework sets right direction, but provinces are key to delivering success

Working together, governments can unlock the clean energy solutions needed to power responsible development

September 3, 2026
Media Release
A horizontal, wide shot of a futuristic data center corridor with rows of server racks and control panels, illuminated by a cool blue glow and overhead lighting, creating a sense of depth and complexity in a symmetrical composition.

A horizontal, wide shot of a futuristic data center corridor with rows of server racks and control panels, illuminated by a cool blue glow and overhead lighting, creating a sense of depth and complexity in a symmetrical composition. Credit: iStock

CALGARY — KARI HYDE, Director of the Pembina Institute’s Customer Energy Solutions program, made the following statement in response to new federal framework for responsible data centre development. 

“Canada’s electricity system is undergoing a fundamental transformation as demand continues to rise. Data centres represent one of the most significant drivers of this growth and, potentially, one of the most impactful. New federal guidelines for AI data centre development signal the right priorities for this emerging industry: attracting investment while aiming to minimize negative impacts on communities, land and water use, and electricity grids. 

“Turning these principles into reality will require strong provincial leadership to accelerate the deployment of the lowest-cost and lowest-emissions energy solutions. Across the provinces, however, a number of restrictive regulatory and policy barriers continue to stand in the way. These include unnecessary curtailment, a limited understanding of the role of flexibility, and regulations that needlessly limit the supply of renewable energy and storage. Getting this moment right can only be possible when these barriers are removed and, critically, will require strong collaborative action on the part of both provincial and federal governments with clear expectations and accountability measures. 

“If done right, smart and responsible data centre development can support a cleaner, more resilient, and more affordable grid. Done poorly, it risks locking in higher emissions shifting electricity costs onto households and businesses. These shortcomings can be avoided through effective policy that maximizes the potential of new industrial growth as Canada advances its electrification and energy transition objectives. Today’s federal framework is a step in the right direction, providing a foundation for provinces as they develop the necessary regulatory and policy solutions needed to enable responsible growth without compromising on affordability or higher emissions.”

[30]

Contact

Sarah Snowdon
Senior Comms Lead, Pembina Institute
647-797-9329

Background
Blog: The data centre energy debate is missing half the story
Report: Footing the bill: How hyperscale data centres could increase electricity bills in Alberta
Media release: Ontario’s new data centre playbook signals right priorities on future development
Submission: What’s the best way to power Alberta’s growing data centre sector?
 

 

Get our Pembina Perspectives

Pembina Perspectives provides thoughtful, evidence-based research and analysis to support action on climate — in your inbox every two weeks.

We endeavour to protect your confidentiality; read our full privacy policy.