Alberta’s Data Center Levy: Will It Impact Your Electricity Bill in late 2026?
Until a couple of years ago, unless you worked in IT, you probably didn't give much thought to data centres. But now, with the fast-growing adoption of artificial intelligence, data centres are becoming big news.
Artificial intelligence requires huge amounts of both data and power. As AI companies build their data centre infrastructure, governments around the world need to balance the demands of business with those of local residents. In Alberta, the Data Centre Levy aims to strike the right balance between encouraging business and protecting resources for Albertans.
In this article, we'll take a look at what the levy is and why it's being introduced. We’ll also explore how the levy and data centres, more generally, can affect your electricity bill, and the solutions available to protect your energy independence.
What Is Alberta's Data Centre Levy and Why Is It Being Introduced?
On December 11, 2025, the Alberta government introduced Bill 12, which imposes a new levy on data centres, effective December 31, 2026. This levy applies to data centres with an electricity capacity of 75MW or more. The levy is a 2% tax on the value of all the computing equipment, including servers, racks, and cooling systems, in large, grid-connected data centres. It is fully creditable against Alberta corporate income tax, meaning that there is no net tax increase on the data centres once the facilities become profitable and therefore eligible for income tax.
The levy was introduced to capture provincial revenue from the boom in data centre growth without applying sales or property taxes on hardware, as other jurisdictions have done. According to the government, the taxes are necessary to offset the additional strain placed on the electrical grid by power-hungry AI facilities. The levy is intended to fund infrastructure development while preserving Alberta's low-tax appeal for investors.
How Data Centres Affect Alberta's Electricity Grid
The massive power demands of data centres represent a huge strain on Alberta's electricity grid. To give a sense of the scale involved, it's worth noting that the Alberta Electric System Operator received 29 applications for connection from data centres by mid-2025. Together, these applications represented over 16,000MW of power requested. Currently, Alberta's peak demand is 12,000MW.
Because the grid can only handle so much, it may be necessary to limit connections and usage in the short term. To combat power outages and reduce your home’s electricity bill for 2026, consider alternative power options like EcoFlow DELTA Pro Ultra X, reducing your dependency on typical grid power.
To more than double the province's electricity generation is a huge task. The cost of improving the infrastructure will be substantial, so the government wants to tap revenue from these data centres to make the expansion possible. It also aims to encourage data centre operators to generate their own on-site power, as centres not connected to the electricity grid will not be subject to the levy.
High industrial demand can also threaten grid stability. The constant demand they generate could exceed available supply and disrupt service for households and businesses.
It requires careful planning on the part of the government to avoid blackouts or energy usage caps for Alberta residents while trying to meet the demand of these booming businesses.
Will the Levy Raise Electricity Bills for Households?
The data centre levy is intended to offload some of the cost of improving energy infrastructure to the biggest users. The levy will apply only to commercial data centres connected to the grid and using more than 75MW of power. Part of the goal is to stabilize electricity prices for regular consumers and protect them from price volatility as demand increases.
With that said, Alberta has a competitive electricity market, which means the government has limited control over what electricity providers choose to do. It's possible that operators will pass higher costs on to consumers, especially during times of high demand.
Ultimately, electricity prices are affected by numerous factors, including fuel costs, weather, and infrastructure maintenance. The levy itself is not intended to raise prices for residential use, but the growth of data centres in Alberta could still increase electricity costs, even with the levy.
What the Levy Means for Home Energy Planning
Whether the data centre levy has its intended effect or not, it's undeniable that Alberta's power supply will be transformed by these data centres. Whether that means higher prices, blackouts, or energy rationing, it's important to be prepared for the future.
One way to protect your resilience against blackouts and high prices is with an EcoFlow Whole-Home Backup Generator. These electrical generators are simple to install, emission-free, and can be charged by solar or grid power. With enough power for the entire home, they let you ride out a power outage in comfort.
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Frequently Asked Questions
What Is Alberta’s Data Centre Levy?
The data centre levy is a 2% tax on the equipment used by large data centres. Intended to offset the cost of the improved infrastructure needed to power data centres, the levy comes into effect on December 31, 2026.
Are Residential Electricity Customers Being Taxed?
No. The Alberta data centre levy is aimed only at large data centres consuming 75MW of power or more. This means typical homes, individuals, and businesses will not be affected by the levy.
Could the Levy Help Stabilize Power Prices?
That's the goal. Data centres will place a huge strain on Alberta's electricity infrastructure, and the data centre levy is intended to raise money to improve the infrastructure and keep power prices stable.
How Can Households Prepare for Potential Energy Price Changes?
The rise in data centres is expected to increase electricity demand. Using home power systems and generators, especially in combination with solar or other renewables, can protect you from rising energy prices and potential outages.
The Future of Electricity in Alberta
The Alberta data centre levy is an attempt to raise funds to improve the province's electricity generation and transmission system to meet the demands of the 21st century. But as more data centres come online, it's inevitable that the way we consume power in Alberta is going to change.
Products like the EcoFlow DELTA Pro Ultra X let you build your resilience and energy independence. That way, you avoid power outages or even go completely off-grid to protect yourself from rising energy costs.