Subj : Data center crackdown - Canadian province set to charge levy on n
To   : All
From : TechnologyDaily
Date : Mon Sep 01 2025 21:30:09

Data center crackdown - Canadian province set to charge levy on new hardware, 
but will this just make providers move elsewhere?

Date:
Mon, 01 Sep 2025 20:14:00 +0000

Description:
Alberta will impose a 2% levy on large data center hardware, adding 
uncertainty to investment.

FULL STORY
======================================================================Alberta 
confirms 2% levy on computer hardware in massive data centers Data centers 
with 75 megawatt loads or higher face new charges Levy is scheduled to begin 
on December 31, 2026 across the province 

The Canadian province of Alberta has confirmed plans to introduce a 2% levy 
on computer hardware used in large data centers. 

The measure is scheduled to take effect on December 31, 2026, and will apply 
to facilities with a load of at least 75 megawatts. 

The government notes the levy is not intended to become a permanent 
additional burden, since once a data center turns profitable and begins 
paying corporate taxes, the charge will be offset. How the levy may affect 
operators 

Large data centers depend on high-performance systems, ranging from servers 
equipped with the largest SSD arrays to storage racks optimized for cloud 
storage . 

These facilities already operate on tight margins during the early years of 
deployment, when hardware expenses are at their peak. 

A 2% charge on such equipment could influence calculations about where to 
build, particularly since rival jurisdictions in North America are competing 
aggressively to attract investment. 

Whether Albertas offset mechanism is enough to reassure operators remains an 
open question. 

However, the province has emerged as a favored destination because of its 
relatively cheap natural gas supplies, as more than two dozen data center 
proposals, totaling over 12,000 megawatts of demand, have already been 
submitted to the Alberta Electric System Operator. 

This surge reflects confidence in Albertas energy availability, but the levy 
introduces a new variable into decision-making. 

If costs rise, the attraction of abundant energy may no longer be enough on 
its own to secure new projects. 

The levy is not Albertas first attempt to control the pace of data center 
growth, as earlier in 2025, its provincial grid operator capped new 
connections for large load projects at 1,200 megawatts until 2028. 

That decision prompted opposition from some indigenous communities, who 
argued that restrictions could block them from pursuing their own digital 
infrastructure investments. 

When viewed alongside the new levy, such policies suggest a tightening 
regulatory environment that could complicate long-term planning for 
operators. 

Alberta now faces a delicate balance because the levy could ensure that 
large-scale operators contribute more directly to provincial revenues. 

It could also bring additional costs and restrictions that may prompt 
companies to explore alternatives in other provinces or across the border. 

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======================================================================
Link to news story:
https://www.techradar.com/pro/data-center-crackdown-canadian-province-set-to-c
harge-levy-on-new-hardware-but-will-this-just-make-providers-move-elsewhere


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