A sign is seen on a Google office building at the company’s campus in Mountain View, California (AP Photo/Jeff Chiu, File)
Four First Nations in Alberta are calling out the province’s current approach to building its data centre industry, warning that it may be pushing away the very tech giants it hopes to attract. Leaders from the Alexander First Nation, Paul First Nation, Enoch Cree Nation, and Alexis Nakota Sioux Nation have voiced their concerns in a direct, open letter to Premier Danielle Smith and her government.
The letter, shared this week, emphasizes that although Alberta has the right resources and partnerships in place, its current power allocation policy could strand important, shovel-ready data centre projects backed by major industry players.
“Alberta has what it takes to be a leader in data centre investment,” the chiefs wrote. “But none of that matters if we fail to act. Right now, our ability to deliver is being questioned.”
The Power Problem
Data centres require a huge amount of electricity, both to run their servers and to keep them cool. According to the Alberta Electric System Operator (AESO), they’ve received power requests from 29 proposed data centre projects, which together demand more than 16,000 megawatts — over eleven times the electricity used by the entire city of Edmonton.
But AESO says it can only allow 1,200 megawatts of large-scale projects to be connected to the grid between now and 2028.
Aaron Engen, CEO of AESO, said this limit is necessary to protect the stability of Alberta’s power grid. “We can’t connect every project at once without risking the reliability of the grid,” he explained.
Concerns from Indigenous Leaders
To the First Nations, that 1,200-megawatt limit sends the wrong message to major tech companies like Amazon and Meta. The chiefs say these companies don’t think small — they operate on a global scale and need a reliable, massive power supply.
“These companies think in gigawatts. They’re looking for places ready to host full-scale operations, not slow rollouts,” the chiefs argued.
If Alberta can’t support one major project without delays, it tells investors that the province isn’t serious about competing with other regions for large-scale tech investments, they say.
Alberta Government’s Response
In response, Ashli Barrett, press secretary to Affordability and Utilities Minister Nathan Neudorf, stated that the province still aims to be a top destination for AI-powered data centres.
However, she stressed that any development must not compromise power reliability or affordability for Alberta residents and businesses.
Barrett also clarified that the 1,200-megawatt figure is not a permanent cap. Instead, it’s meant to help projects that are already well-developed move forward while the government designs a longer-term energy plan that could include private power sources.
First Nations Seek Investment, Not Just Consultation
Chief Tony Alexis of the Alexis Nakota Sioux Nation says his community is not just looking to be consulted — they’re ready to invest in data infrastructure. “We’re not waiting on the sidelines.
We’re talking equity stakes, training opportunities, and real long-term jobs,” he said.
He believes the data centre industry could bring sustainable development to Indigenous communities, especially with Alberta’s young and growing First Nations population.
“Alberta wants to build a championship-level digital economy. But if the stadium doors aren’t wide open, how can the star players get on the field?” he said.
