Alberta just shocked big tech with a new 2% data levy that could change billion-dollar cloud growth forever
- 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 Alberta’s 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 Alberta’s 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 Alberta’s 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.
Via Bloomberg
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