Artificial intelligence data centers are known for their significant electricity consumption, potentially leading to increased energy costs for consumers in Alberta. The proposed Meta Data Centre in Sturgeon County, Alta., one of the province’s largest planned data centers, could result in an annual impact on household power bills ranging from $270 to $460 once operational, according to a recent report by the Pembina Institute, a clean-energy think tank.
Data centers serve as physical facilities that house the necessary computing hardware for various tech applications utilizing AI. In 2023, data centers accounted for 4.4% of U.S. electricity demand, a figure projected to potentially rise to 12% by 2028 by the U.S. Department of Energy.
Meta Platforms Inc., the parent company of Facebook and Instagram, announced intentions to construct a $13 billion data center complex, expected to be operational within the next two to three years. The data center would be linked to the adjacent $4.6 billion Greenlight Electricity Centre, capable of producing 932 megawatts of power with the potential for future expansion.
While the provincial government and Meta have stated that the data center will not increase electricity costs for Albertans, experts suggest that the period between the data center opening and the power plant’s completion could exert upward pressure on consumer electricity prices. The Pembina report highlights the potential for a cumulative effect as more data centers are established in Alberta, emphasizing the need for renewable energy sources and efficient energy management practices to mitigate impacts on consumers.
Furthermore, discussions surrounding responsible data center development have emerged, emphasizing the importance of minimizing environmental impact, creating lasting local benefits, and not shifting electricity costs to Canadians. Meta and other organizations have endorsed these principles, aiming to ensure sustainable and transparent growth in the data center sector.