Artificial intelligence is now a permanent part of the global economy, driving innovation and productivity across sectors. It is not just digital technology that will be affected, and there are potential for new breakthroughs in health care, transportation and climate research.
B.C. Premier David Eby has touted the potential of AI for the province, and singled out the Vancouver-based biotechnology company AbCellera for praise, which has used AI to discover new treatments for diseases including cancer.
It is not debatable that AI is here to stay here, and that it will reshape industries across the board and create new economic opportunities.
But these opportunities come at a big energy cost. AI technologies, especially advanced generative models like OpenAI’s ChatGPT, use a massive amount of electricity. A single query to ChatGPT uses 10 times more energy than a regular Google search.
Globally, AI-driven data centres are expected to increase electricity demand by 160 per cent by 2030. According to the RBC Climate Action Institute, data centres planned in Canada could account for 14 per cent of the country’s total electricity needs by the end of the decade. Alberta alone is assessing for up to 6,455 megawatts of new data centre capacity which could double the province’s electricity emissions.
B.C. is facing a big challenge meeting its existing electricity demand, let alone the added load from AI. BC Hydro is already maxed out, having imported a record 13,600 gigawatt-hours last year — 25 per cent of its total electricity needs — from outside sources. Much of that imported power is generated by fossil fuels, especially natural gas, from Alberta and the U.S. at a cost of nearly $1.4 billion.
This reality shows BC Hydro can’t generate enough domestic power despite initiatives like the $16 billion Site C Dam, which will still fall short of current import levels when completed.
B.C.’s aggressive electrification policies, including mandates for electric vehicles and electric heat in homes, have exacerbated the demand-supply imbalance. As more sectors get electrified, the pressure on the grid grows and the risk of blackouts and economic disruption increases.
Clearly relying only on existing hydro infrastructure is no longer an option. Alberta offers a practical solution to this growing energy demand. Recognizing the economic potential of AI, Alberta’s government has launched a plan to attract $100 billion in AI data centre infrastructure in the next five years.
Alberta’s deregulated electricity market and abundant natural gas reserves provide a clear advantage, fast, low cost and reliable energy solutions. Technology Minister Nate Glubish has said natural gas combined with emerging carbon capture technology is an immediate and scalable way to power these data centres.
Big investors like Kevin O’Leary have seen Alberta’s approach as economically sensible and are proposing massive data centre projects like the $70 billion Wonder Valley near Grande Prairie. These projects show how quickly jurisdictions can use natural gas to meet rapidly growing energy demands linked to AI.
B.C. needs to take a similar pragmatic approach. Natural gas power generation is dispatchable, meaning it can be ramped up quickly when needed, making it perfect for the fluctuating but intense energy demands of AI data centres.
Despite B.C.’s opposition to new natural gas infrastructure, reality is natural gas is needed in the short to medium term. Without diversification, the province will be further dependent on expensive imported energy and undermine its energy security and economic competitiveness.
The Energy Futures Institute has explicitly recommended building more natural gas infrastructure to ensure reliable and affordable energy for the province’s future. Ignoring this recommendation will put B.C.’s ability to compete in the global AI-driven economy at risk.
B.C. must act fast to build a natural gas-powered AI network. By doing so, it can secure its energy future, grow its economy and remain competitive globally. Alberta’s approach shows this works and is necessary to thrive in the AI driven economy of tomorrow.
Geoff Russ is a political journalist and writer based in British Columbia.
