Organizations worldwide are rushing to harness the potential of generative AI, but the challenge lies in finding suitable data centers quickly enough to maximize value. Traditional data centers can’t keep up with the exploding demand. By 2027, the storage capacity needed in these centers will more than double, and advanced computing requires immense processing power.
To address this, data centers will need to boost their rack density by 7.8% annually, leading to hundreds of servers and thousands of processing units. This will require a significant amount of energy and create a lot of heat, underlining the importance of scaling data demands sustainably. This shift greatly affects where new data centers are being established.
Emerging markets that offer affordable, sustainable energy, an educated workforce, good connectivity, low living costs, and a growing customer base are becoming prime locations. Alberta, Canada, ticks all these boxes, attracting considerable interest from major tech companies.
AWS has committed around $4 billion to build three new data centers in Alberta. This region is transforming into a global tech hub, drawing billions in investments from companies such as Amazon, Dow, Eventcombo, Applexus Technologies, and KKR. In 2022, Alberta saw record-breaking venture capital investments, recognizing its matured tech sector, which is in high demand for AI resources.
Rick Christiaanse, CEO at Invest Alberta, points out the strengths that position Alberta’s data centers for continued growth and success in global data infrastructure.
Alberta is one of Canada’s fastest-growing provinces, excelling in energy, clean tech, and agriculture. It’s leveraging this growth to boost its technology, financial services, aviation, and logistics sectors. Nearly $20 billion has been invested, creating over 25,000 jobs since 2020.
The province’s workforce is young, diverse, and growing faster than anywhere else in Canada. Alberta has the youngest workforce in North America, with the highest percentage under the age of 45, and 64.8% having post-secondary education. Almost 100,000 people work in tech, a number expected to rise thanks to local educational institutions, which are the third-largest STEM graduate suppliers in Canada. The University of Alberta ranks fifth globally in AI and machine learning publications.
Alberta also boasts strong global connections with two major airports, two transcontinental rail carriers, and 15 free trade agreements. Numerous multinational companies operate in Alberta, supported by Invest Alberta’s global presence. Additionally, Alberta is investing $390 million to ensure province-wide broadband access by 2026.
Alberta offers the lowest tax rates in Canada, with no provincial or payroll taxes and some of the lowest corporate income taxes in the country, lower than in 44 U.S. states. Streamlining approvals and reducing regulatory requirements by nearly 33% further enhances its pro-business environment.
In terms of energy, Alberta is a leader. Since mid-2019, over $2 billion has been invested in renewable power developments. The province has reduced emissions from electricity generation by 60% since 2005 by phasing out coal-fired power. Alberta’s deregulated electricity market, debt-free electricity system, and naturally cool climate, which lowers cooling costs by up to 30%, make it an attractive location.
Alberta’s blend of a strong economy, business-friendly environment, access to global markets, and a young, educated talent pool makes it an ideal investment destination. Invest Alberta provides tailored support to companies and investors, helping them easily navigate project development, bringing the right people together, and facilitating business growth and long-term success.