Danielle Smith Defends AI Data Centre Expansion Amid NDP Moratorium Call

Alberta Premier Danielle Smith and several provincial ministers held a virtual town hall on August 28, 2026, to address public anxiety over the rapid expansion of artificial intelligence data centres. More than 12,500 attendees raised concerns regarding electricity costs, the rezoning of prime farmland, and water usage. Smith stated the government is working to determine the appropriate distance between these facilities and residential areas, though she noted that a five-kilometre setback is likely too far.

The debate centers on the province's goal to attract jobs and tax revenue, highlighted by a proposed $13-billion Meta campus and a $4.6-billion natural gas power plant in Sturgeon County, north of Edmonton. Government officials argued that closed-loop cooling systems would minimize water consumption and that data centres would pay their own transmission fees to protect residential electricity rates.

Opposition NDP Leader Naheed Nenshi called for a moratorium on all new AI data centre projects, arguing that the government has rubber-stamped developments without a clear regulatory framework or impact assessments. This political clash follows a recent decision by the Alberta Utilities Commission to reject a data centre project in Olds because of its proximity to homes.