The Pulse
Jan. 14, 2025

The Alberta government's work to lure data centres to the province and spur artificial intelligence could be a costly effort that exceeds the capacity of our electrical grid and highlight how expensive our electricity is, says the operator of several independent data centres in Edmonton.

"We have something like five or 10% of the expected data centre capacity we'll need for the next five or 10 years," Dale Corse, the CEO of Wolfpaw Data Centres, told Taproot about the Edmonton region. "Could we handle an AI boom? No, absolutely not."

Data centres routinely make news in Edmonton nowadays, yet people rarely get to understand what they are, how they work, and what their business model is. Taproot set out to discover these details from Corse at Wolfpaw, which is one of at least six operators of commercial data centres in Edmonton. Wolfpaw has been in operation since 1998, and has spaces at Rice Howard Place and within two Rogers facilities in town.

The provincial government's goal is to build the data centre capacity that an AI boom would need in Alberta. Its Artificial Intelligence Data Centres Strategy, rolled out in December, sets to develop Alberta's electrical capacity, solve cooling challenges for data centres, and ultimately drive economic growth by seeing companies invest to build centres and AI to use them. The strategy lists objectives for each of these goals, and a map of actions that includes modernizing regulations and collaborating with municipalities. When announced, Minister of Technology and Innovation Nate Glubish said he wants to see $100 billion invested in data centre infrastructure in Alberta over the next five years.

What's a data centre?

"A data centre is a place where you would rent space — either physical space or possibly computer space — to put your IT stuff so that it stays online all the time," Corse said.

Data centres house the computers needed to power the internet, the applications and storage that companies rely on, and increasingly, the computing power needed to create services that use AI.

Corse said the two key functions of a data centre are to keep the electricity on, even during a power outage, and to keep the computers cool. "A data centre would be expected to be able to deal with all of those problems for you so that as a company, you can just concentrate on your business and don't have to also be an IT company on top of trying to do your day to day," he said.

Wolfpaw's facility at Rice Howard Place consumes 5,000 square feet and can draw up to 400 kilowatts of electricity at a time. The company has redundancies, including generators, for its power and cooling to ensure its operations never go down, Corse said. Right now, the centre draws around 200 kilowatts for its clients. By contrast, Corse estimated the average household draws a maximum of 10 kilowatts at any given time.

How does the business work?

A data centre's biggest expense is electricity, Corse said. Real estate is "one of the smaller numbers on the balance sheet," he added. The input cost of electricity is the greatest hurdle, he said, and even building the infrastructure to supply it is pricey.

It costs between $8 million and $10 million to build one megawatt, or 1,000 kilowatts, of data centre power, Corse said. "Some of these AI guys, (they) come to us and they want three megawatts of power. OK, well, that's $30 million worth of equipment just to run it, and then you have the input cost (from electricity) on top of it. So it is a great business, so long as somebody can afford to pay for that. Is it a great business for the small guy? Maybe not."

• More than 3,000 public school education support workers in Edmonton and nearby communities went on strike beginning the morning of Jan. 13 to demand livable wages from Edmonton Public Schools and Sturgeon Public School Division. The workers, including educational assistants and cafeteria staff, are represented by CUPE Local 3550 and CUPE Local 4625. The union is being offered a 2.75% wage increase, retroactive to 2020, which it argues is insufficient for workers, who earn an average of $34,500 annually. Schools remain open during the strike, but services may be affected.
• The City of Edmonton sent more than 430,000 property assessment notices last week. The assessments determine each property's 2025 taxes, which help fund municipal services. Property taxes are set to increase by 6.1% in 2025. The City encourages residents to review their assessment details for accuracy and compare them with similar properties using tools available online.
• EPCOR and Edmonton Fire Rescue Services are warning residents about the dangers of skating or walking on frozen stormwater ponds. The ponds are unsafe because of constantly moving water and melting solutions that weaken the ice. Firefighters respond to about a dozen calls for rescue on the ponds annually.
• The Alberta government sent two fully equipped wildfire crews, consisting of 40 wildland firefighters and two agency representatives, to help battle the devastating California wildfires. California sent assistance to Alberta during the province's record-breaking wildfire season in 2023. The province said it is prepared to provide additional resources, including water bombers and night vision helicopters, if needed.
• The number of sexual assault and exploitation trials in Alberta has significantly increased since 2017, with these cases now making up a larger portion of court dockets, CBC News reported. The increase is attributed to a decrease in stigma, greater recognition of the seriousness of sexual violence, and movements like #MeToo, prompting more survivors to report incidents. While police and support organizations have improved their handling of these cases, challenges such as long waiting lists for services remain.
• Former Alberta premier Rachel Notley has joined the law firm Southern Butler Price, returning to her career as a labour lawyer after resigning as an MLA in 2024. The firm, which specializes in workplace-related services, praised Notley's experience in leadership and governance. "I can't wait to bring my experience to this exciting new chapter," Notley said in a statement.
• Edmonton Oilers forward Zach Hyman has purchased the Ontario Hockey League's Brantford Bulldogs. Hyman will take over operations on Jan. 16 after buying the team from Michael Andlauer. It has been an eventful week for Hyman, who also landed an endorsement deal with Oreo as part of its "Stay Playful" campaign to promote hockey accessibility for kids across Canada.

Here are some events happening today in the Edmonton area.

• ERINnovation Meetup - From Idea to MVP starting at 12pm online
• Preparing For Financing | Business Learning Series starting at 1pm online
• Netflix's 2025 Product Strategy with Gibson Biddle starting at 5pm at Alberta Machine Intelligence Institute
• CITI Edmonton Coffee Social starting at 6pm at La Bosco Bakery and Cafe
• So you want to win an award? starting at 7pm online
• 4 Course Beer Pairing Dinner: Beer to Warm Your Winter starting at 7pm at The Underground Tap & Grill
• Paul Woida starting at 7:30pm at The Maclab Centre for the Performing Arts
• Tuesday Jam Hosted by Lisi Sommer starting at 8pm at The Yardbird Suite

And here are some upcoming events to keep in mind:

• Jan. 25: Fort's Got Talent at Dow Centennial Centre
• Jan. 26: YEG Trivia "Night" at VP Kitchen and Lounge
• Jan. 28: AWE Connect Event and Celebration at EPIC Market

Visit the beta version of the Taproot Edmonton Calendar for many more events in the Edmonton region.