The Alberta Electric System Operator (AESO) has allocated all 1,200 megawatts of electricity available under its temporary cap for large-load projects to two proposed data centres near Edmonton.

TransAlta’s Keephills project received 230 megawatts, while 970 MW were assigned to a Pembina Pipeline proposal could evolve into a major Meta AI data centre, The Logic reported.

“We’re excited about the data-centre opportunity in Alberta and the meaningful investment it can bring to the province,” a TransAlta spokesperson told CBC.

AESO introduced the interim limit in June in response to unprecedented electricity demand from planned hyperscale data centres, driven by rapid growth in generative AI and the computing needs of companies such as Microsoft, Amazon and Google. The operator says 37 additional data centre projects seeking grid connections are requesting 19.4 gigawatts of power—nearly 14 times the electricity required to run Edmonton.

Ryan Li, a University of Alberta electrical and computer engineering professor warned that data-centre development timelines outpace Alberta’s ability to build new grid infrastructure.

“We need to have a very smart way to operate the system so we make sure that we don’t cause power quality or reliability issues,” he told CBC.

To ease pressure, AESO is encouraging proponents to bring their own power generation, such as on-site plants, so their load does not travel through the transmission and distribution system, CBC reported. AESO’s latest update shows proponents are seeking to add nearly 20 gigawatts of load by 2031 but have proposed less than 5 gigawatts of new generation.

Nathan Neudorf, the province’s minister of affordability and utilities, told CBC in a statement that the government supports AESO’s “balanced approach” to enabling an emerging industry while maintaining reliability.

Neudorf said the province it aims to be the “destination of choice” for AI data centres but will ensure projects do not compromise affordable, reliable electricity for Albertans, First Nations and local industries. The temporary allocation, he added, will allow the two approved projects to advance as the province develops a long-term framework for meeting future large-load power needs.

The provincial government is looking to attract billions of dollars worth of data-centre investments over the next five years. Premier Danielle Smith has instructed Neudorf to try and attract $100 billion of data-centre investment over the next five years.

Alberta’s data-centre strategy aims to establish the province as the most attractive location in which to locate AI data centres.