New analysis from the Pembina Institute estimates that between 2027 and 2031 an average Albertan household is at risk of paying an additional $267 to $462 per year for electricity once the new Meta data centre begins operations.
While our analysis focuses on the effects of Meta’s new hyperscale data centre, we also estimate that as more data centres are built in Alberta, similar impacts should be expected under Alberta’s current data centre policy.
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.
To help mitigate price increases for residents, the provincial government must ensure large power users pay the full cost of delivered energy – not just transmission costs. In addition, the government of Alberta should create a regulatory environment that prioritizes demand-side management and allows data centres to choose from a diverse portfolio of generation including wind, solar, and storage in addition to (not exclusively) natural gas.
Future data centre policy design should take into account the full cost and system impacts of data centre development in the province – especially considering Albertans already pay some of the highest and most volatile electricity rates in the country.
