Data Centre Levy

Alberta’s AI Data Centre Strategy: Powering the future of artificial intelligence, released in December 2024, laid out the road map for making our province a prime destination for technology investment, especially in the Artificial Intelligence (AI) sector. 

A strong AI industry in Alberta will drive local innovation, create jobs, and support economic diversification.

This strategy includes several priorities to preserve the well-being of Albertans, including a focus on keeping utilities affordable and maintaining a stable utility market. The government is also committed to ensuring that Albertans receive an appropriate return from data centres. 

Although data centres would be subject to corporate income tax in Alberta, research shows that they pay little corporate taxes in Alberta under the current rules. Other North American jurisdictions use different tools to raise revenue from data centres, with the most common mechanisms being sales or property taxes on computing equipment used by the data centres. The Government of Alberta does not levy a sales tax, nor property taxes on any machinery and equipment. As a result, Alberta needs to consider a new approach to generate more substantial revenue from data centres.

Consultation Scope

This consultation is intended to focus on two potential approaches for a levy on data centres, as well as an in-kind compute program. Government is interested in hearing stakeholder feedback or comments on the proposal, including the proposal details, timelines and other factors associated with these proposed initiatives.

Other out of scope topics include:

• Concerns related to the Government of Alberta’s broader data centre strategy.
• Energy generation and distribution policy/administration in Alberta. 
• Data centre grid connection process. 
• Municipal or federal taxation of data centres. 
• How the levy revenue would be used.

Consultation Process

All questions may not pertain to your organization’s business. Please address the questions that pertain to your organization. You may also send your submissions, comments and questions to tbf.consultations@gov.ab.ca 

Feedback received during the consultation process will be used by government to help finalize its policy, which will be announced as early as fall 2025.

Government of Alberta will be collecting responses until August 18, 2025 at 11:59 p.m.