CALGARY — New independent analysis from the Pembina Institute explores the impact of Meta’s new hyperscale data centre on Alberta’s electricity market, and concludes that this project could add between $270 and $460 dollars a year to Albertans’ electricity bills once the data centre begins operations.
The analysis estimates the overall impact of the Meta data centre on a typical Albertans’ electricity bill from 2027-2031. From this analysis, the Pembina Institute confirms that, while Albertans could see a 6% reduction on the transmission portion of their electricity bills as a result of Meta’s grid connection, the market impacts of the new Meta data centre will far outweigh the transmission savings. These findings are in line with perspectives from industry leaders such as EPCOR, Capital Power, TransAlta, and the Alberta Electricity System Operator. Altogether, these collective findings highlight the importance of good policy design to mitigate the impact of connecting significant new power demand on Alberta’s electricity market.
At the heart of significant electricity market pressures, and the resulting bill increases, are Alberta’s “Bring Your Own Generation” rules, which allow data centres to connect to the grid before their generation is brought online. But, as our analysis shows, when these new large-scale data centres connect to the grid, it puts pressure on the electricity market, increasing costs until new power plants come online.
The planned policy framework also forces data centres to rely exclusively on natural gas for new generation, barring operators from choosing lower-cost alternatives, including renewables and storage – both of which could be used to keep rates relatively low and stable. While other jurisdictions are using a more robust set of policies and technologies to support data centre growth and minimize their impacts on ratepayers, Alberta has taken a much more narrow and restrictive approach, reflecting a wider policy environment that has severely constrained renewable energy development since 2023.
While our analysis focuses on the impacts of the Meta data centre under Alberta’s current policy landscape, we anticipate similar, substantial, and long-term impacts as more data centres get built in Alberta. Without a significant change in policy direction, including rate protections and the removal of long-standing anti-renewables policies, Albertans are likely to face sustained pressure on electricity bills in the years to ahead.
Quotes
“Albertans already pay some of the highest and most volatile electricity rates in the country. If data centres are coming to Alberta, they should help make our electricity system stronger, cleaner and more affordable. Instead, Alberta’s current rules risk increasing consumer costs, while locking in new high-emission gas power.
“It didn’t have to be this way. Tech companies have been leaders in renewable deployment in Alberta, but have been held back from further investment by hostile government policy interventions. Removing red tape for renewables can help to stabilize energy costs, enable local economic development, and reduce the emissions impact of this emerging industry.”
— David Pickup, Director of Electricity, Pembina Institute
Quick facts
- In 2025, the average Albertan household spent approximately $1,700 on electricity, with energy costs making up the largest share (40%), followed by distribution (23%) and transmission charges (18%), rate riders and other administration fees (14%), and taxes (5%).
- The Pembina Institute estimates that an average Albertan household could pay between $267 and $462 more per year between 2027 and 2031 as a result of the Meta data centre. This means Albertans may be paying 15% to 25% more for their electricity in the next five years as a result of the data centre.
- Exact bill impacts will vary depending on each household’s electricity provider and rate plan (i.e. fixed, regulated, or variable).
- Quebec and Ontario are considering a separate rate class (or tariff) for data centres, while British Columbia is implementing a competitive bid process for new grid connections.
- Until recently, Alberta was the top destination for wind and solar investment in Canada. However, multiple years of policy, regulatory and market uncertainty have created a hostile investment environment for renewables developers. These policies, in addition to the AESOs planned data centre framework, create upward pressure on Alberta’s electricity prices and limit cost savings and grid flexibility opportunities.
Visit the Pembina Institute’s website to download a copy of Footing the Bill: How hyperscale data centres could increase electricity bills in Alberta
Contact
Bhan Gatkuoth
Senior Communications Lead
587-742-0818
Background
Submission: What’s the best way to power Alberta’s growing data centre sector?
Blog: The data centre energy debate is missing half the story
Blog: Data centres, rising demand, and Alberta's energy bills
Media release: Alberta’s decision to power new data centre with gas will drive up consumer costs
Media release: Greenlight Electricity Centre, and “tripling” of Canadian LNG exports, to further push up electricity prices for Albertans
Report: Path of most resistance
