Alberta’s efforts to position itself as a Canadian hub for data centres have come under criticism from an unexpected yet crucial voice: First Nations leaders. Chiefs representing four Alberta First Nations have expressed deep concerns about the province’s restrictive approach to data centre development, warning that current policies will fail to attract large global players such as Meta and Amazon.
While First Nations communities are eager to participate in Alberta’s emerging data centre sector, they argue that the provincial government’s cap on the size of new data centre projects sends the wrong message to Big Tech. In their view, the current limitations indicate that Alberta is not prepared to deliver the scale and power security needed by hyperscale data centre operators, which are the lifeblood of today’s AI and cloud computing boom.
“Tech giants want certainty of supply at scale,” said one chief in a joint statement. “If Alberta caps data centre size, it’s telling companies like Meta and Amazon to look elsewhere.”
Their concerns are well founded. According to the Alberta Electric System Operator (AESO), the province has received requests for 29 proposed data centre projects, representing a colossal potential power demand exceeding 16,000 megawatts. For perspective, this is roughly 75% of Alberta’s current installed power generation capacity. Such demand underlines how data centres are becoming a powerful driver of industrial electricity use, reshaping grid planning worldwide.
However, Alberta’s grid operator has decided it will only connect up to 1,200 megawatts of large load projects by 2028 to maintain grid reliability. While prudent from a system stability standpoint, this cautious approach could undermine Alberta’s competitiveness as a data centre destination.
First Nations leaders argue that Alberta should aim higher, not just to attract Big Tech tenants but to create meaningful economic partnerships with Indigenous communities. The chiefs emphasized that First Nations are ready to participate as equity partners, land providers, renewable energy developers, and skilled workforce suppliers. They see the data centre sector as a generational opportunity to build self-sufficient economies, digital sovereignty, and long-term income streams for their people.
This Indigenous perspective reveals a broader structural issue in Alberta’s data centre strategy: it focuses narrowly on industrial approval rather than holistic ecosystem development. Globally, Big Tech firms prioritise locations where renewable energy can meet their net-zero goals, where governments provide regulatory certainty, and where Indigenous and local partnerships ensure a smooth social license to operate.
By capping data centre sizes without a parallel strategy to develop new renewable generation and grid infrastructure, Alberta risks losing out to provinces such as Quebec, where abundant hydroelectricity has attracted Amazon, Microsoft, and Google, or to U.S. states like Iowa, Virginia, and Oregon, where data centre clusters have emerged with supportive grid policies.
First Nations chiefs are not merely critics; they are offering solutions. They urge Alberta to integrate Indigenous economic development into the data centre roadmap, support utility-scale renewable projects led by First Nations, and collaborate on grid upgrades that ensure reliable clean power for large computing loads. Such a strategy would position Alberta as a true data centre hub while delivering reconciliation-based economic empowerment.
For offshore investors, this is a valuable lesson. The data centre industry’s growth is not only about cheap power and tax incentives. It is about aligning digital infrastructure with ESG priorities, Indigenous participation, and resilient energy policy.
As the AI revolution accelerates global demand for hyperscale data centres, jurisdictions that embrace Indigenous partnerships and grid decarbonisation will lead. Alberta’s First Nations are signalling that they stand ready to build such a future—if the province is willing to think bigger.
Invest Offshore continues to monitor the intersection of digital infrastructure, First Nations economic participation, and renewable energy opportunities in Canada’s evolving data centre landscape.
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