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Power grid

Province proposes changes to Bill 8 to open new pathways in powering AI data centres

Nov 26, 2025 | 1:51 PM

The Government of Alberta is proposing changes to Bill 8 that would provide data centres with more options for power and ensure the grid remains reliable.

The province says the changes will address the emergence of Artificial Intelligence technologies and the growing electricity demand.

If the proposed changes for Bill 8, the Utilities Statutes Amendment Act, 2025, are passed, data centres that bring their own generation will be prioritized, which will speed up the approval process.

The province says this would support both the reliability of the power grid for Albertans and speed access to market for industry.

The amendments also ensure that data centre projects would pay for necessary transmission upgrades for data centre grid connections, not Alberta taxpayers.

“We’re preparing Alberta to lead the next technological revolution,” said Nathan Neudorf, Minister of Affordability and Utilities. “The changes we’re bringing forward will protect the reliability and affordability of the electricity Albertans depend on while creating opportunity for innovation and investment that will create long-lasting benefits for our province, families and communities.”

Bill 8 also proposes changes to continue the work already underway to modernize the province’s electricity grid and restore the balance between affordability, reliability and sustainability.

If passed, the Utilities Statutes Amendment Act would build on changes made in the spring through the Energy and Utilities Statutes Amendment Act, 2025, to support the implementation of the Restructured Energy Market. This includes the finalization of the market’s framework, based on extensive industry engagement by the Alberta Electric System Operator (AESO).

“The Restructured Energy Market modernizes Alberta’s electricity system to help ensure it stays reliable, to address affordability and to attract the new investment needed to power our homes and businesses in the years ahead,” said Aaron Engen, president and CEO, AESO.

The bill also proposes changes to enhance electricity transmission policy, recognizing incumbent generators and incentivizing more efficient use of existing power infrastructure. It will also enable Alberta’s hydrogen-blended natural gas regulatory framework for hydrogen blending pilot projects.