EDMONTON — A new study by the Pembina Institute has warned that Meta’s upcoming data center in Sturgeon County, Alberta, could lead to a significant surge in electricity bills for local residents.
According to an analysis of projected distribution costs over the next five years, while transmission fees might decrease by approximately $13 annually, household energy charges could rise by $282 to $477 per year. Researchers attribute this cost spike to a critical time lag between when the data center commences operations and when its dedicated power generation facility becomes fully functional.
Premier Danielle Smith defended the province’s stance, emphasizing Alberta’s “Bring-Your-Own-Generation” (BYOG) policy, which requires data center developers to generate their own electricity to shield regular consumers from rising utility costs. However, under Meta’s agreement with Capital Power for its 1-gigawatt facility, the data center will draw power directly from the provincial grid starting in 2028, whereas its dedicated gas plant is not scheduled to be operational until 2030. Utility providers EPCOR and Direct Energy have voiced similar concerns regarding this transitional gap.
In response, Alberta’s Ministry of Affordability and Utilities dismissed the Pembina Institute’s findings, accusing the organization of stoking unnecessary fear. Government officials highlighted that fixed-rate options are available to consumers for up to two years, effectively insulating them from market fluctuations. However, David Pickup, who led the study, countered that fixed rates will ultimately adjust upward over the long term.
Meanwhile, Alberta Opposition Leader Naheed Nenshi has called for a temporary moratorium on all new data center applications until a comprehensive impact assessment can be conducted.
