Indigenous Participation in Canada's Emerging Data Centre Landscape
- IEM
- Jun 28
- 5 min read
Updated: Nov 13
As artificial intelligence (AI) reshapes industries, economies, and national priorities, the data centre infrastructure behind it has become one of the most sought-after asset classes globally. For Indigenous communities in Canada, the rise of large-scale data centre infrastructure presents a generational opportunity to participate in the digital economy as equity partners, landowners, and economic stakeholders. However, as interest surges, regulatory bottlenecks and consultation gaps also risk sidelining Indigenous communities.
The Rise of AI and Data Centres
The global AI boom has unleashed massive demand for high-performance computing power, which in turn requires vast amounts of physical infrastructure: data centres, fiber, power, and cooling systems. Every new AI model, from ChatGPT to image generators and predictive analytics tools, runs on compute-intensive servers housed in these specialized facilities.
Current trends suggests that global demand for data center capacity could rise at an annual rate of between 19 and 22 percent from 2023 to 2030 to reach an annual demand of 171 to 219 gigawatts (GW) (McKinsey & Company, 2024). Due to this rapid growth, major technology firms are now racing to secure power, land, and permitting for new builds.
The Alberta Advantage
Within Canada, Alberta has emerged as the leading jurisdiction for large-scale AI data centre development in Canada. The province offers a rare combination of factors that make it an attractive jurisdiction to invest in:
Deregulated electricity market, attractive for energy-hungry operations.
Large natural gas reserves and production is a cheap and reliable power source.
Leading jurisdiction for carbon sequestration capabilities.
Land availability and existing industrial zoning near substations and fiber corridors.
Cool climate, which reduces cooling costs for large-scale server farms.
Pro-growth government policies, including the AI Data Centre Strategy, aimed at attracting digital infrastructure investment.
As part of the AI Data Centre Strategy, Alberta’s government has stated it will prioritize economic reconciliation by promoting co-ownership opportunities and partnerships with Indigenous communities.
AESO Limits
Despite Alberta's advantage and eagerness to attract data centre development, AESO (Alberta Electric System Operator), announced in June 2025 that Alberta’s power grid cannot accommodate the surge of proposed data centre projects.
As of June 2025, there were 29 proposed projects would demand more than 16 gigawatts combined, a level of demand the province has never seen (CBC, 2025).
To address this challenge, the AESO has established an interim limit of 1,200 MW, which represents the maximum additional large load capacity that the grid can serve without negatively impacting grid reliability (AESO, 2025).
This decision has frustrated developers and industry proponents who argue it undermines Alberta’s efforts to attract tech investment. However, the Alberta government has also highlighted the province's deregulated electricity market as a draw for operators, who can use it for off-grid power generation which does not need to go through AESO for approval.
Indigenous Leaders Respond
Just weeks after AESO announced the restrictions on data centre developments tied to Alberta’s electrical grid, leaders from Enoch Cree Nation, Alexis Nakota Sioux Nation, and Alexander and Paul First Nations issued an open letter to the Alberta government, warning that AESO’s position on large-load connections threatens to derail the province’s data centre ambitions:
"We write to you as the Chiefs of the Alexander First Nation, Paul First Nation, Enoch Cree Nation, and Alexis Nakota Sioux Nation. Our Nations stand together in asserting our position as both stakeholders and potential investors in Alberta’s emerging data centre value chain... We, as Indigenous Communities, embrace this vision and are eager to participate meaningfully in building a world-class data centre industry that creates jobs, generates revenue, and secures long-term prosperity for all our people... Alberta’s current framework is capping our potential at the very moment we should be unleashing it." (Electrical Business, 2025).
Indigenous Benefits
Participation in the data centre sector offers Indigenous nations a unique set of opportunities:
Lease revenue for data centres on reserve or Indigenous-owned lands.
Equity ownership in land or infrastructure.
Capacity-building in skilled trades, electrical services, cybersecurity, and operations.
Self-determined digital sovereignty, enabling Indigenous communities to host and control their own data infrastructure.
These benefits align closely with community-driven economic development strategies and long-standing calls for equity participation in major infrastructure projects.
Early Examples
While still in early stages, several recent cases illustrate both the promise and challenges of Indigenous participation in Canada’s data centre sector:
Woodland Cree First Nation - 650 MW Equity Ownership (AB)
The Woodland Cree First Nation recently announced plans for a 650 MW data centre in Alberta utilizing an idle power plant to provide power. The Woodland Cree own 51% of the project along with partner Sovereign Digital Infrastructure.
Upper Nicola First Nation – A $500M AI Data Centre Proposal (BC)
Upper Nicola Band in British Columbia is consulting its community on a proposed $500 million AI data centre to be built on Indigenous lands. The project could provide long-term revenue through a lease agreement.
Sturgeon Lake Cree Nation – Opposition to Wonder Valley Data Centre (AB)
Sturgeon Lake Cree Nation has brought forth concerns over the Wonder Valley AI Data Centre Development in the Municipal Distrit of Greenview in Alberta, which is located on their traditional territory.
Prophet River First Nation - Exploring a Large-Scale Project (BC)
Prophet River First Nation has entered into a letter of intent with ABCT Pacific Ltd to develop a large data centre enar Fort St. John to leverage the AI opportunity and the recent completion of the Site C Dam. Prophet River would own a majority stake.
The Path Forward
Canada’s digital infrastructure build-out is only beginning. As billions of dollars are invested into data centres, power upgrades, and fiber optics, there is a clear and urgent opportunity to ensure Indigenous communities are included.
Looking ahead, we expect to see:
Increased Indigenous equity investment, supported by government-backed loan guarantees and Indigenous financial institutions.
Increased lease agreements as developers build projects on Indigenous-owned lands.
Direct consultation and inclusion in regulatory and land-use planning.
Collaborations with developers, municipalities, and provincial utilities to unlock Indigenous-opportunities to fast-track development.
The data economy is here, and the communities that own, operate, and shape its infrastructure will control the future. For Indigenous nations across Canada, this moment represents a high-value opportunity to be at the centre of the digital transformation.
How IEM is Supporting Transparency
We’re actively tracking Indigenous participation in Canada’s growing data centre market as part of our Indigenous Energy Ownership Tracker (IEOT). The IEOT is currently tracking over 480 Indigenous-owned projects across 5 sectors - oil & gas, power & utilities, chemicals & fuel, CCUS, and mining & minerals.
By centralizing and visualizing ownership data, we help communities, developers, and policymakers:
Identify where Indigenous equity is being deployed
Benchmark successful ownership models
Understand trends across regions and sectors
Discover funding sources that get projects built
Build partnerships based on evidence
And so much more
🔗Discover the IEOT Tool Here: https://www.indigenousenergymonitor.ca/ieot
Stay Informed, Get Involved
Whether you’re an Indigenous economic development group looking to evaluate data centre opportunities, or a project developer seeking Indigenous partners, IEM's transparency and data are essential.
🔗 Explore our solutions: www.indigenousenergymonitor.ca
📩 Contact us: info@indigenousenergymonitor.ca
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