Alberta Secures Landmark Energy Deal, Diversifies with Digital Hub Ambitions
A new federal-provincial energy agreement and robust digital infrastructure plans signal a pivotal economic shift for Alberta, while Canada's economy avoids recession.
A recent analysis from ATB Economics, 'The Seven,' highlights a significant breakthrough in Alberta-federal energy relations and a surprising rebound for the Canadian economy. The report details a new Memorandum of Understanding, which Prime Minister Mark Carney calls a step to "make Canada an energy superpower," a sentiment echoed by Premier Danielle Smith, who sees it as "Alberta’s moment of opportunity."
Energy and Economic Resilience
The agreement outlines the federal government's willingness to suspend regulatory barriers, including the oil and gas emissions cap and the coastal tanker ban, conditional on the Pathways Alliance investing in its proposed $16.5 billion Carbon Capture and Storage (CCS) project and Alberta strengthening its industrial carbon price to $130 per tonne. This move is projected to facilitate new west coast pipelines, potentially adding over $16 billion to Canada's GDP and creating 40,000 jobs annually, according to the Canadian Association of Petroleum Producers. Concurrently, the Canadian economy demonstrated resilience, growing at an annualized rate of 2.6% in the third quarter, thereby avoiding a technical recession following a 1.8% contraction in the second quarter.
Digital Infrastructure Ambitions
Beyond traditional energy, Alberta is actively pursuing growth in the digital infrastructure sector. The International Energy Agency projects global investment in data centers to reach $580 billion in 2025, surpassing new oil supplies. Alberta’s Technology and Innovation Minister Nate Glubish aims to attract $100 billion in data centre investments over the next five years, supported by a new levy framework. This diversification builds on the province’s tech sector, which contributed $13 billion to GDP in 2023, bolstering Calgary Economic Development’s forecast of 2.9% economic expansion for the city this year.