Varcoe: Two promising signs for Alberta’s economy? 15 proposed data centres and billions raised by tech sector​on February 22, 2025 at 12:00 pm

“From the venture capital standpoint, it just goes to show that companies can grow at scale. They can create jobs, and people don’t have to leave Calgary.”

For example, Calgary-based Reach, a global payment provider, announced a deal this week with U.S.-based Primus Capital for a strategic investment — the dollar figure was not disclosed — that will allow the company to scale up its operations.

Reach CEO Sam Ranieri said the tech firm, which has 112 employees (with 70 per cent in Calgary) aims to increase its staff by about 30 per cent within the next year as it continues to expand the business.

“We’re sort of at the point where a real strong backer, financially and institutionally, was needed for us to hit the next level. So we went to market and it ended up being a majority deal,” Ranieri said Friday.

“There’s just a lot of innovation happening (in Calgary) right now. It’s a pretty buzzing little sector and I think there’s a lot of really bright people around the space right now, just breaking down barriers.”

Data centres also continue to create a buzz in the province.

These facilities require a round-the-clock, reliable electricity supply. Alberta’s large reserves of cheap gas, along with wind and solar, provide options for power.

Premier Danielle Smith has previously advised project proponents looking to build data centres to bring their own power or to partner with generators to ensure they have enough electricity for their developments.

In October, Montreal-based eStruxture Data Centers said it would build a $750-million, 90-megawatt (MW) facility north of Calgary.

Other companies are also actively looking, and Technology Minister Nate Glubish reiterated Friday that Alberta could attract up to $100 billion in data centres over five years.

“We’re one of the best jurisdictions in North America to build this infrastructure,” Glubish said in an interview.

“Now, we just need to focus our effort on making sure that if folks want to build this type of infrastructure, that they’re also bringing with it the incremental power generation.”

The latest AESO data indicates that 15 data centre proposals are now in the connection queue, including seven in the Calgary region at 3,250 MW.

If all 15 in Alberta are built, they would need 10,000 MW of power, although it’s uncertain how many proposals will proceed.

To get a sense of scale for this emerging sector, the average electricity load for the entire province is around 10,000 MW, noted Robert Davidson, AESO’s vice-president of grid reliability, projects and planning.

“There’s a high level of uncertainty on what will progress from our perspective,” he said of the projects in the lineup.

On Thursday, TransAlta CEO John Kousinioris said the Calgary-based company is looking to support data centres at some of its existing gas-fired power units in the province. It’s also talking with potential customers, communities and the province.

“We aim to secure exclusivity with key partners by mid-2025, with detailed design and definitive agreements expected later in the year,” Kousinioris told analysts on a fourth-quarter earnings call.