Our daily lives depend on digital services, and data centres are the infrastructure that makes those services possible. All the following examples rely on data centres:
- Online banking
- Video calls
- Streaming movies, shows and music
- Smart home devices
- Social media
- Phone and computer apps
- Online medical records
- Personal cloud storage
As demand grows, Sturgeon County, as part of Alberta’s broader strategy, is taking a planned and responsible approach to data centre development – focusing on the right locations, clear rules, and long-term benefits for residents.
Why data centres?
Sturgeon County is strengthening its position as a competitive location for business and investment. Data centres are part of that long-term vision because they:
- Support growing global and local demand for cloud services, artificial intelligence, and connected technologies
- Align with federal and provincial efforts to expand digital infrastructure and attract investment to Alberta
- Build on local strengths, including industrial land, established utility corridors, and access to transportation networks
Data centres also help diversify the County’s economy and Industrial base. Over time, this creates stable, non-residential revenue that supports local programs and helps reduce pressure on residential property taxes.
In simple terms, the same digital tools residents use each day are driving new investment opportunities. Sturgeon County’s goal is to ensure those opportunities benefit the community.
Responsible growth
Sturgeon County follows a clear principle: we allow for development in the right place, with the right rules.
Data centre development is directed to Alberta’s Industrial Heartland, which was planned for heavy industry decades ago.
This area is already zoned and designed for large-scale industrial activity. Locating development here helps:
- Keep industrial uses away from residential communities
- Companies use existing infrastructure like transportation, power, and utility corridors
- Provide clarity and consistency for both developers and residents
Before any project moves forward, it must demonstrate to the County how it will manage impacts such as water use, transportation, and construction activity.
How projects are approved
Data centre development involves multiple levels of government. Each has a clear role.
Sturgeon County
- Oversees land use, zoning, and development permits
- Ensures compliance with local bylaws and construction standards
- Monitors construction and operations
Province of Alberta
- Regulates electricity systems and approvals through agencies like the Alberta Electric System Operator (AESO) and Alberta Utilities Commission (AUC)
- Oversees environmental standards and water use licensing
Federal Government
- Provides oversight on broader environmental and regulatory frameworks
Projects must meet all applicable requirements before they can proceed. This means no development happens without multiple layers of review.
Water and power: planned to protect residents
Two of the most common questions about data centres relate to water and electricity. Sturgeon County’s approach is designed to ensure that existing residents and businesses are not negatively affected.
Power
Data centres are not expected to reduce power availability for residents. Alberta has the only fully deregulated energy market in Canada, which means:
- Projects are encouraged to generate their own power on-site and are not required to connect to the provincial grid
- Any connection to the provincial grid must be approved by the Alberta Electric System Operator (AESO), which protects reliability for all users
- Large industrial projects who bring their own power generation reduce pressure on the shared system
This approach helps ensure that residential power service remains stable and reliable.
Water
Sturgeon County will operate two distinct water supply systems to protect drinking water for residents. The potable water system supplies treated water safe for drinking water, and the process water system supplies untreated water for industrial uses.
By keeping potable and process water separate, Sturgeon County can:
- Safeguard drinking water supplies so residential and community needs are always prioritized
- Prevent high-volume users from straining the potable system
- Apply different conservation measures based on demand
- Maintain affordability, since process water can be managed and priced differently from residential drinking water
1. Potable (drinking) water system
Sturgeon County’s potable water is treated to provincial drinking standards and is safe for consumption, cooking, sanitation, and daily household use. This system provides water for:
- Residential users
- Commercial and industrial users
- Agricultural users
- Institutional users
Potable water is directed by the Capital Region Northeast Water Commission and is drawn from the North Saskatchewan River through EPCOR’s system. There is plenty of capacity for the County’s (and region’s) future water needs. For more information, view the regional water systems feasibility study.
To ensure there is always enough high-quality drinking water to serve residents and community needs, the potable system uses:
- Water meters to track usage and encourage conservation
- Demand management tools, including potential watering restrictions during high demand periods
- System monitoring to ensure reliability and compliance with provincial regulations
2. Industrial (Process) Water System
Sturgeon County is developing a separate “process water” system for industrial use. Unlike potable water, process water is not treated for drinking and is unsafe for human consumption.
Typical industrial uses include:
- Cooling water for industrial equipment
- Process-related cleaning or flushing
- Manufacturing water needs
- Dust suppression
- Boiler feed (depending on treatment requirements)
- Other non-potable industrial and operational processes
Both the potable and process water systems operate on the principle that growth pays for growth. This means that as new residential, business, or industrial developments come along, the developer would either make monthly payments or pay for the initial capital cost of the infrastructure needed.
Why Having Two Systems Protects Residents
By keeping potable water and industrial process water separate, Sturgeon County can:
- Safeguard drinking water supplies so residential and community needs are always prioritized
- Prevent high-volume users from straining the potable system
- Apply different conservation measures to each system based on demand
- Maintain affordability, since process water can be managed and priced differently from residential drinking water
- Support development responsibly without compromising public health
This dual‑system approach ensures that Sturgeon County can continue providing safe, reliable drinking water to residents while supporting local industry in a sustainable way.
Land use and property rights
The areas identified for data centre development have been designated for heavy industry for decades.
Within these zones:
- Data centres and associated infrastructure are permitted uses
- Landowners may propose development that meets zoning rules and regulations
- Public open houses are not required for approval for a data centre development, as they are permitted within the land use
As with any development:
- Project details remain private until formal applications are submitted
- Once permits are granted, information becomes publicly available
- This balance supports both investment attraction and regulatory transparency.
Community benefits
Well-planned data centre developments provide long-term benefits, including:
- Stable, diversified municipal revenue that supports programs and services
- Infrastructure investment, such as roads, utilities, and energy systems
- Jobs and economic activity during construction and ongoing operations
- Support for digital services that residents rely on every day
Developers are also responsible for funding infrastructure required to support their projects, ensuring that the cost of growth is not shifted to residents.
Frequently asked questions
Why are data centres being built now?
People are using more digital services than ever before. Things like streaming, online banking, smart devices, and video calls all rely on data centres. That social media post or research you did using AI all contribute to data centre demand. As demand grows, more facilities are needed to support these services.
Canada, including Alberta, is seeing increased interest in data centre investment because of available land, energy options, and strong infrastructure.
Are all data centres the same?
No. Data centres vary in:
- Size
- Design
- Power supply
- Cooling systems
- Water use
Older data centres can look and operate differently than newer ones. Newer facilities are often more efficient and use updated technology.
Could a data centre be built near my home?
In Sturgeon County, data centres are only allowed in industrial areas, not residential neighbourhoods.
In Sturgeon County, the Alberta Industrial Heartland was planned for heavy industry over 25 years ago and has the infrastructure needed already in place.
Why is this type of development happening in Sturgeon County?
Sturgeon County is part of Alberta’s Industrial Heartland, where:
- Lands were zoned for heavy industry more than 25 years ago
- Data centres and power generation are allowed uses in these areas
- Many industrial operations already exist in these zones
This means data centres are being proposed in areas that were planned for this type of use long ago.
What is known about current or pending applications?
There is a strong interest in building data centres in Alberta.
- Many companies applied for access to electricity through the provincial system
- Not all projects can move forward right away due to limited grid capacity
- Some projects may proceed later or use their own power sources
At the early stage:
- Project details are confidential
- Once a formal permit is approved, information becomes public
Power and Electricity
Will data centres use the same electricity as homes?
Not in most cases. Data centres are expected to:
- Bring their own power generation
- Use “behind-the-fence” power systems (power made on-site)
This reduces or removes the need to use electricity from the provincial grid. If a data centre wants to connect to the grid, it must go through the Alberta Electric System Operator (AESO) to get approval.
What happens if a data centre connects to the provincial grid?
If a project wants to connect to the grid, it must be approved by the Alberta Electric System Operator (AESO). The AESO’s mandate is to ensure Alberta’s power system operates safely, reliably, and economically.
AESO:
- Reviews all requests
- Protects power reliability
- Ensures existing users are not affected
There is limited space on the grid, and approvals are controlled to protect power availability.
Will data centres affect my power service?
No. Planning rules are designed to make sure:
- Homes and businesses keep reliable power
- New projects do not take away from existing users
As demand for power grows, local companies can work together to build new “behind-the-fence” power facilities, like Greenlight Electricity Centre. These facilities provide power directly to large industrial users, like data centres, instead of relying only on the main electricity grid.
This benefits residents because it can reduce pressure on the grid that homes and businesses use, while also supporting local investment, jobs, and new power infrastructure in the County.
Why are companies encouraged to generate their own power?
The province encourages large projects to generate their own power to:
- Reduce pressure on the grid
- Support new energy investment
- Make better use of Alberta energy resources, including natural gas
This approach helps balance growth with system reliability.
Water
Will data centres compete with homes for water?
No. Sturgeon County is a designated industrial zone and has received funding from the Government of Alberta to construct a dedicated industrial water system. Large industrial water users will be directed to this system over time.
How much water is available?
There is available capacity in the system. As part of the Designated Industrial Zone initiative, Stantec was commissioned to conduct a regional water systems feasibility study in May 2022. The study found that:
- Only 36% of the County’s annual water license is used each year
- 46% of the water withdrawn returns to the North Saskatchewan River
- Overall use is minor compared to the flow of the North Saskatchewan River
Will water quality change?
No. Water use is regulated by the province and must meet environmental standards.
Sturgeon County will operate two distinct water supply systems to protect drinking water for residents. The potable water system supplies treated water safe for drinking water, and the process water system supplies untreated water for industrial uses. This helps:
- Protect water quality
- Keep systems reliable
- Ensure safe drinking water for residents
How do data centres compare to other industries’ water usage?
In Alberta’s Industrial Heartland:
- Many industries already use water in operations
- Some currently use more water than proposed data centres
Data centres are expected to operate within the same regulated system as other industries.
Community Impacts
Will there be more traffic?
There may be more traffic during construction in industrial areas. However, as part of development:
- Developers must complete transportation studies
- Provincial approvals are required through Alberta Transportation and Economic Corridors (ATEC)
- Road improvements may be required and are paid for by the developer
Will there be noise or emissions?
Like all industrial projects, data centres must meet strict standards. Depending on the project:
- Noise and emissions may be reviewed by provincial regulators
- Projects must meet environmental and operating limits
Data centres in the County will be built in zoned industrial areas, not near residential neighbourhoods. Other traditionally loud industrial facilities are currently operating in the same areas.
What approvals are required?
Data centres must meet multiple requirements before they can proceed, including:
- Sturgeon County development permits and compliance with the Land Use Bylaw
- Provincial approvals for power, environment, and water
- Transportation impact assessments, approved by Alberta Transportation and Economic Corridors (ATEC)
For more information on development requirements, visit how development is regulated.
Why can’t the County share details about every project?
Early-stage projects are often confidential for business reasons, such as land negotiations or competition. Before a final investment decision is made:
- Companies may use non-disclosure agreements (NDAs)
- The County must follow provincial privacy rules
Depending on the project, there may be public notices, hearings, or regulatory comment periods where residents can participate. Details become public once all approvals are in place, and the investment has been announced.
Benefits to residents
What are the benefits of data centres?
Well-planned projects can provide:
- Economic benefits and growth across many sectors (construction, trades, services, utilities)
- Infrastructure improvements like roads, power systems, and utilities paid for by developers
- Municipal revenue that supports County services and helps keep residential taxes stable
How do these projects support the region?
Data centre development can:
- Attract new investment
- Support local businesses
- Strengthen long-term economic stability
For Further Information
Watch the Economic Innovation and Growth Activity Update that took place on November 25.