First Nations call on Alberta to revise energy policy limiting hyperscale AI data centre development

Why are First Nations leaders in Alberta calling for changes to large-load power allocation policies?

The Chiefs of Alexander First Nation, Paul First Nation, Enoch Cree Nation, and Alexis Nakota Sioux Nation have jointly released an open letter addressed to Premier Danielle Smith and the Government of Alberta. The letter expresses urgent concern over the Alberta Electric System Operator’s (AESO) newly released interim methodology for connecting large-load energy users to the provincial grid. Specifically, the Chiefs argue that the 1,200 megawatt (MW) cap outlined in the AESO framework could severely limit the development of gigawatt-scale data centres—investments they view as essential to Alberta’s emergence as a global hub for artificial intelligence (AI) infrastructure.

The Indigenous leaders emphasized that they are not merely observers in this transformation, but willing equity participants in Alberta’s data economy. Their letter reflects a broader vision in which First Nations serve as co-investors and builders of long-term digital infrastructure, aiming to create high-value employment and sustained prosperity within their communities. According to their statement, Alberta’s power policy must evolve if the province is to attract hyperscale investors like Amazon Web Services, Microsoft Azure, or Google Cloud, all of whom design their facilities at multi-gigawatt scale.

How does Alberta’s current 1,200 MW cap compare to hyperscale data centre energy requirements?

The AESO’s recently proposed 1,200 MW allocation is positioned as an interim guideline for large-load connection requests, intended to manage grid growth while maintaining system reliability. However, the Indigenous Chiefs point out that this figure is dramatically out of step with market realities. A single modern hyperscale data centre can require up to 1,000 MW to accommodate AI training clusters, cloud-based workloads, and long-term infrastructure redundancy.

According to the letter, there are currently 29 active proposals in Alberta seeking to develop data centres with a cumulative demand exceeding 16 gigawatts (GW). Dividing 1,200 MW across potentially 15 or more projects over multiple years creates a bottleneck that could deter the very investments Alberta seeks. Institutional investors generally regard hyperscale projects as low-margin, high-scale operations, and these models depend on uninterrupted access to reliable, large-scale power.

The Indigenous leaders warn that such rationing inadvertently sends the message that Alberta lacks readiness to support hyperscale development. They argue that this approach introduces competitive fragmentation among projects and risks delaying or derailing shovel-ready proposals backed by major industry participants.

What contradictions do First Nations leaders see between Alberta’s policy and its stated digital strategy?

Alberta’s Data Centre Strategy, promoted by Premier Danielle Smith and Technology Minister Nate Glubish, lays out a vision to attract multi-billion-dollar digital infrastructure investments and transform the province into a competitive North American hub for AI and cloud services. In that strategy, the government articulates a goal of enabling gigawatt-scale projects through supportive energy policies, permitting reform, and coordinated land development.

However, the letter contends that the AESO’s 1,200 MW interim cap contradicts this ambition. It prevents even one hyperscale project from proceeding without multi-year delays and signals that the province’s policy framework is misaligned with investor expectations.

Institutional sentiment, while broadly supportive of Alberta’s digital pivot, has flagged regulatory uncertainty and limited grid flexibility as red flags. Analysts suggest that failure to resolve these bottlenecks could result in capital shifting to more responsive jurisdictions such as Quebec, Oregon, or Northern Europe, where gigawatt-scale development is already underway.

Why do First Nations view participation in Alberta’s data centre economy as a generational opportunity?

The Chiefs’ letter positions Indigenous involvement not as symbolic, but as a core strategy for equitable economic growth. With young and rapidly expanding populations, many First Nations are investing in training programs focused on digital trades, electrical engineering, AI literacy, and construction. These initiatives are structured around long-term participation in infrastructure projects with high employment and revenue generation potential.

The leaders highlight that First Nations are ready to invest as partners, bringing land, labour, and local governance capabilities into alignment with provincial development goals. A model of co-creation, they argue, would help Alberta set a precedent for socially responsible infrastructure expansion while ensuring enduring community support.

By contrast, delaying projects or marginalizing Indigenous voices risks reinforcing a pattern of economic exclusion from transformative sectors. The letter offers Alberta a clear path toward reconciliation through shared prosperity rather than symbolic gestures.

What risks does the current power allocation model pose for Alberta’s competitiveness in the AI era?

From an infrastructure investment standpoint, delays and uncertainty around energy provisioning have direct consequences. Hyperscalers typically plan facilities five to seven years ahead of demand, and power availability is often the first gating criterion. If Alberta’s grid planning cannot accommodate large-scale deployments, hyperscalers may reroute their capital to regions where power commitments are backed by state-level policy instruments.

The letter argues that existing power generators—many of whom have invested billions in Alberta’s energy sector—are also disadvantaged by the current policy. These producers are unable to fully leverage their infrastructure investments under an allocation regime that restricts capacity expansion for large economic development projects.

According to institutional investors monitoring the province’s AI sector readiness, the mismatch between strategy and grid readiness is already raising questions about Alberta’s execution capability. Some equity analysts have noted that Alberta’s data centre narrative is increasingly reliant on hypothetical growth, rather than committed capital.

What next steps are First Nations leaders calling for to support digital infrastructure growth?

The open letter does not call for a specific technical overhaul but urges the Alberta government to revisit the AESO’s interim methodology and replace it with a framework aligned to gigawatt-scale growth. This includes prioritizing a select number of high-impact, shovel-ready projects—especially those involving First Nations equity participation—rather than dispersing capacity across smaller, less transformative proposals.

The Chiefs also stress that government coordination should focus not just on grid reform, but also on financing models, permitting, land use, and training programs to prepare communities for next-generation employment.

By doing so, Alberta can consolidate its position as a leader in digital infrastructure while ensuring that Indigenous communities share equitably in the returns of AI-era investment. Without these changes, the province may risk forfeiting its early mover advantage in the global AI infrastructure race.

What is the long-term outlook for Alberta’s hyperscale data centre vision if no changes are made?

The letter’s tone is urgent but constructive. It acknowledges Alberta’s inherent strengths—land availability, energy resources, and a favourable business climate—but stresses that these advantages are not self-executing. Without deliberate policy action, they warn, Alberta risks being outpaced by jurisdictions with better alignment between strategy and implementation.

In the absence of a revised energy allocation plan, institutional confidence in Alberta’s data centre expansion goals may erode. Analysts indicate that unless Alberta can unlock multi-gigawatt capacity for a handful of cornerstone projects, its digital infrastructure ambitions could remain aspirational.

The First Nations leaders conclude their message with a call for partnership. They position themselves as ready collaborators, investors, and builders in Alberta’s AI-powered future—but only if the province matches vision with policy execution.