Alberta is introducing a levy framework for large-scale data centres to attract investment, create jobs and ensure Albertans benefit from this fast-growing sector.
Effective Dec. 31, 2026, a two per cent levy on computer hardware will apply to grid-connected data centres of 75 megawatts or greater. This framework was shaped through a six-week consultation with industry stakeholders and reflects Alberta’s commitment to fairness, competitiveness and long-term prosperity.
To maintain Alberta’s position as one of the most attractive jurisdictions in North America, the levy will be fully offset against provincial corporate income taxes. Once a data centre becomes profitable and pays corporate income tax in Alberta, the levy will not result in any additional tax burden.
“Alberta’s government has a duty to ensure Albertans receive a fair deal from data centre investments," Minister of Technology and Innovation Nate Glubish said. "This approach strikes a balance that we believe is fair to industry and Albertans, while protecting Alberta's competitive advantage.”
Alberta’s government is also exploring options, to be developed with industry input, to provide cost stability, including a payment in lieu of taxes program that would allow companies to make predictable annual payments instead of fluctuating levy amounts, and a deferral program to ease cash-flow pressures during construction and early years of operation.
“After working closely with industry, we’re introducing a fair, predictable levy that ensures data centres pay their share for the infrastructure and services that support them," President of Treasury Board and Minister of Finance Nate Horner said. "This approach provides stability for businesses while generating new revenue to support Alberta’s future.”
To ensure consistency across Alberta communities, data centres of 75 MW or greater will be formally recognized as designated industrial properties, with property values assessed by the province. Land and buildings associated with data centres are subject to municipal taxation, and municipalities may offer property tax incentives or deferrals for up to 15 years under existing provisions of the Municipal Government Act.
This framework builds on the Alberta Artificial Intelligence Data Centre Strategy, introduced in December 2024, which positions Alberta as a destination of choice for AI infrastructure. Alberta’s unique advantages – including natural cooling efficiencies, low-cost electricity, and a competitive tax system – make it an ideal location for data centre development, offering investors both certainty and a predictable tax landscape.
