The Alberta Electric System Operator (AESO) has launched an interim approach to large load connections.

The new approach is expected to enable the connection of up to 1.2GW of large load projects, including data centers, between now and 2028.

AESO states that the new approach will enable the Canadian province to accommodate new large load connections while maintaining the reliability of its electrical system.

According to the system operator, the new approach was enacted in response to skyrocketing demand across Alberta, which is increasingly becoming a hotbed of data center activity due to its ample land access and large energy reserves.

In total, 29 data center projects are seeking a grid connection in the province, with the City of Edmonton, along with more than 1.4GW of data center connection requests currently in its queue.

The scale is unprecedented for Alberta, said Aaron Engen, CEO of AESO. “As the system operator, we are responsible for ensuring that new project connections do not compromise grid reliability," he said. "Because connecting all large loads seeking access would impair grid reliability, we established a limit that preserves system integrity while enabling timely data centre development in Alberta."

The 1.2GW limit is based on the maximum additional load the grid can serve without negatively impacting its overall reliability.

The approach applies to any project equal to or greater than 75MW. Project qualification for the approach is based on municipal support, financial security, and completed power flow studies, and will only support projects where no new transmission system reinforcements or upgrades are required.

“This is a fit-for-purpose solution that will facilitate immediate data centre growth and development in the province without compromising grid reliability,” added Engen. “And we are doing that based on the AESO’s deep engineering expertise and operational rigour.”

While significant amounts of data center capacity in Alberta are seeking a grid connection, several operators have begun to seek off-grid power to expedite their route to market.

Notably, in February, AI data center firm Crusoe entered into a multi-year framework agreement with natural gas-fired power provider Kalina Distributed Power to develop colocated AI data centers in Alberta, Canada.