Frequently Asked Questions
A data centre is a warehouse full of computers. Imagine rows upon rows of powerful computer servers, stacked in racks from floor to ceiling, connected to the internet, running around the clock. From the outside it looks like a nondescript warehouse, similar to any ordinary industrial facility, but on the inside a data centre is highly specialized, featuring robust cooling systems, extensive security measures, high-capacity computing equipment and complex power and networking systems. It looks like something from science fiction: electronic, impersonal… stacks of black boxes, thin cables and flickering lights, accompanied by a low hum.
The inside of a data centre may look futuristic, but people have been using them for more than 20 years, really since the Internet became part of our daily lives. During the 1990s, data for websites was stored on individual servers. In the 2000s, as internet services became more popular and diversified, the data that supports them started being stored in these large computer bank warehouses.
These days, most emails that people send are stored in a data centre. So are any records, photos or anything else that people store online. So is the data that supports many existing internet services, from streaming to banking to shopping. When people refer to ‘the cloud,’ they mean a data centre.
Use of the internet continues to evolve. Applications for artificial intelligence (AI) – such as Google Gemini, ChatGPT, Claude AI, etc. – are becoming more popular, increasing the need for the enormous computing power and storage capacity required to train, run and support increasingly sophisticated AI systems. Growing public demand for these systems is the driving force behind the development of warehouses to store their required data.
Building a data centre in Alberta requires a range of municipal, provincial and, in some cases, federal approvals. These can include municipal land-use and development approval, building and electrical permits, and approvals related to mechanical, plumbing and natural-gas systems. Large facilities connecting to the electricity grid may also require an Alberta Electric System Operator (AESO) grid-connection process and, depending on the infrastructure involved, Alberta Utilities Commission (AUC) approvals. Environmental requirements may apply to activities involving water use, wastewater, stormwater, emissions, waste or land disturbance. Projects may also require Indigenous consultation, Crown-land approvals or federal environmental approvals, depending on the location and nature of the development.
Through statutory plans and zoning and land-use bylaws, municipalities can establish appropriate locations and requirements for development permits, which may consider:
- building height and site coverage
- setbacks and surrounding land uses
- environmentally sensitive areas
- impacts on neighbouring properties
- landscaping and lighting
- parking and access
- noise and other potential nuisances
- mitigation measures required from the developer
Municipal decisions can affect whether a proposed data centre project proceeds, and under what conditions.
In Canada, a data centre proposed for Crown land may be located within the traditional territory of one or more Indigenous groups. The development of industrial projects on these lands must consider Indigenous rights, traditional land use and potential impacts on Indigenous communities. Where a project could adversely affect asserted or established Aboriginal or treaty rights, the Crown has a legal duty to consult and, where appropriate, accommodate affected Indigenous groups.
The federal Truth and Reconciliation Commission’s Call to Action 92 calls on business interests to consult meaningfully with Indigenous peoples, build respectful relationships and obtain their free, prior and informed consent before proceeding with economic development projects, such as data centres. It also calls for equitable access to jobs, training and education, and long-term sustainable benefits for Indigenous communities.
Some communities – including Treaty 8 First Nations – hold constitutionally protected rights in Alberta, and the Crown’s duty to consult is law. When a project could affect Treaty rights or traditional uses, Alberta consults the potentially impacted First Nations communities before the related approvals can be granted. The duty is triggered by the nature and location of the project, and is the responsibility of the Alberta Aboriginal Consultation Office to fulfill.
Potential considerations include electricity access, land use, noise, air emissions, water, lighting, visual impacts and site conditions. Municipal and provincial processes address different parts of a proposed data centre development, and local circumstances can affect which requirements apply.
Depending on the project, data centre infrastructure can include electricity generation and grid connections, water systems, fibre-optic connections, roads and other site infrastructure. Requirements vary according to the location and design of each facility.
Data centres and associated power plants must meet applicable Alberta environmental requirements, including requirements relating to air emissions, water and noise. Approvals can include legally binding conditions, public notices, and opportunities for directly affected people to raise concerns or appeal where applicable. Operators must continue to monitor and report on applicable requirements. Please visit Alberta.ca for more information.
Not necessarily. It depends on many factors. Every proposed industrial development project must comply with applicable federal and provincial legislation and regulations, and municipal bylaws. A formal Environmental Impact Assessment (EIA) is one tool used when environmental impacts may be uncertain or difficult to predict.
Not requiring a formal EIA does not mean a project is exempt from environmental regulation. Other environmental approvals and requirements can still apply.
Electricity use varies by size, technology and operation. Large data centres can require hundreds of megawatts of electricity—enough, at continuous use, to equal the annual electricity consumption of roughly half a million Canadian homes.
Before a large project connects to Alberta’s grid, the Alberta Electric System Operator (AESO) assesses whether the system can serve it reliably. Data centres must also get approval from the Alberta Utilities Commission (AUC) to develop and operate a power generation facility.
Specific rules set out noise control requirements and permissible sound levels as well as application requirements for power plants. In addition to the above approvals, depending on the scope of the data centre, they may also require approval from other provincial authorities.
The Alberta government requires data centre projects to pay for their own electricity, grid connections and related infrastructure. New data centres are expected to “bring their own power”, often through on-site or “behind-the-fence” generation. They are not required to connect to the same electricity grid that serves residences. If a data centre does require a grid connection, the Alberta Electric System Operator (AESO) must assess whether the connection can be made without affecting system reliability for existing ratepayers.
Alberta’s emergency procedures prioritize homes and essential services for grid electricity. In an emergency situation, large industrial loads are required to reduce their electricity use before any other users. The Alberta government is developing interruptibility requirements for large data centre connections.
Data centres require water primarily for cooling the computer servers and equipment. The amount of water they require depends on cooling technology. Conventional evaporative cooling can use substantial amounts of water (i.e. relatively high compared to other industrial cooling facilities), while closed-loop or dry-cooling systems greatly reduce water consumption.
Data centres may also require water for fire protection, sanitation, and maintenance.
Large data centres can place additional demands on local water and wastewater infrastructure, so water availability, environmental impacts, and infrastructure capacity need to be considered by regulatory agencies.
Any water use required for a data centre project is subject to Alberta’s Water Act, just like any other industrial use. In the case of a water shortage, new licences are considered junior to existing users and are required to restrict their water usage first. Water licence applications are public; anyone directly affected by an application can submit a statement of concern to Alberta Environment and Protected Areas as part of the application process.
Data centres generate noise primarily from cooling fans, chillers, pumps and other mechanical equipment. These systems can operate continuously, producing a steady humming or fan noise. The sound level experienced by nearby residents depends on the facility’s size, cooling technology, distance and noise-control measures. Noise assessments are used to predict and manage sound levels at neighbouring properties, including at night.
In Alberta, power plants are subject to provincial requirements governing noise levels and project applications. These include noise limits and, where required, noise impact assessments. Depending on the project’s design and scope, a data centre may also require approvals, licences or permits from other provincial authorities, including those responsible for environmental protection and water use.
Noise assessments for proposed Alberta data centres have modelled nighttime sound levels ranging from approximately 35 dBA at receptors 1,500 metres away to 40–45 dBA at closer receptors. These are project-specific predictions, not measurements of an average operating facility. Typical sound levels for comparison:
| Quiet rural area at night | 25–35 dBA |
| Quiet conversation | 40–50 dBA |
| Data centre at a nearby receptor (project-dependent) | 35–50 dBA |
| Normal conversation at 1 metre | 60 dBA |
| Busy road | 65–75 dBA |
In Alberta, data centres mean a diversification of the provincial economy. Natural gas is converted into electricity, which powers the computers that process and generate data, which can travel around the world through fibre-optic networks. That combination of computing power, data and software underpins modern tools and services, including AI, for which demand is growing rapidly.
Data centres can generate local economic activity through construction, private investment, employment, property taxes, natural-gas royalties, transmission fees and data-centre levies. Planning, design and construction jobs are created through development, as with any major industrial infrastructure project, and data centre operations require longer term jobs. Economic spinoffs include property taxes paid to the municipalities, royalties to the Alberta government, and local economic activity.
Private investors pay for the projects and carry the investment risk. Data-centre companies pay for their electricity, grid connections and project infrastructure. Local authorities may own or have investment in local infrastructure, such as roads, water lines or other utilities.
Data centres are a fact of modern life, like roads or pumpjacks or any other contemporary industrial infrastructure. Ultimately, approval authority for industrial projects rests within the jurisdiction of applicable orders of government. If communities in Alberta – or elsewhere in Canada – reject the construction of data centres within their jurisdiction the centres will be built elsewhere: in other municipalities, other provinces or other countries. Rejecting data centre development would mean communities would experience none of the localized impacts, nor any of the benefits of such developments (e.g. employment, tax revenue, infrastructure improvements). Local authorities would also have less control over the storage and management of their citizens’ data that is used for internet applications.
The Alberta government distinguishes between projects that are announced, committed and operating. An announcement does not necessarily mean a project has been approved or built. The Alberta government says private investors carry the financial risk of proposed data centre projects. If a project stalls or does not proceed, investors bear the investment loss. Companies are responsible for decommissioning facilities at the end of their operation.
The growing influence of artificial intelligence (AI) raises important questions for governments, businesses and society. Like the Internet, AI is becoming increasingly integrated into our daily lives and the global economy. Its continued development offers opportunities but also presents risks that need to be understood and managed.
- Data security and sovereignty. Data security involves protecting information from unauthorized access, theft or loss. Data sovereignty concerns the laws and regulations that govern information based on where it is collected, stored or processed.
- Employment impacts. AI may automate certain tasks and displace some jobs, while also creating new employment opportunities and changing the skills required in the workforce.
- Human safety. AI can pose risks through misuse, system failures, misinformation and the potential for automated systems to influence critical decisions without adequate human oversight.
These and other risks require consideration by AI developers, users and regulators. As demand for AI services grows, so does the need for data centre infrastructure to support them. Responsible development requires balancing this demand with appropriate safeguards, oversight and consideration of potential impacts on society.
