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Alberta’s electricity grid is facing a challenge unlike anything it has seen before. How it responds will shape the province’s industrial and digital future for decades to come.
A surge in data centre requests has brought 29 proposed projects representing more than 16 gigawatts (GW) of total demand currently seeking grid connections, a scale and complexity Alberta has not previously experienced. To put that into perspective, the City of Edmonton has a load of approximately 1,400 MW. The “plug and play” era of industrial grid connection is clearly hitting its limit.
As AESO CEO Aaron Engen put it: “Alberta has never seen this level and volume of load connection requests. As the system operator, we are responsible for ensuring that new project connections do not compromise grid reliability. 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.”
Facing an unprecedented number of new connection applications, the AESO launched the two-phased Large Load Integration Program in June 2025. Phase 1 set an aggregate cap of 1,200 MW for large loads requesting power of 75 MW or more prior to 2028 — representing the estimated amount of power that could be allocated to data centres without adversely impacting costs to existing ratepayers or grid reliability.
However, it became apparent that the allocations would be far less than the power required by all eligible participants. As a result, all but two participants pulled out of the program, and the available capacity was allocated to those two projects.
The remaining 37 data centre projects currently looking to connect to Alberta’s grid are requesting a cumulative 19.4 gigawatts of power.
Phase 2A: Enter BYOG
With Phase 1 now complete and the interim capacity fully allocated, attention has turned to Phase 2 — and a transformative new concept at its core: Bring Your Own Generation (BYOG).
The Large Load Working Group Phase 2A (LLWG-2A) will follow a structured approach to develop the proposal: identify key challenges in the current connection process, understand best practices and regulatory considerations, contribute to the design and validation of a proposal for BYOG and MW allocations, and deliver a final proposal for broader industry consultation in 2026.
Connecting data centres and other large loads to Alberta’s electricity grid is a rapidly evolving process. Large loads introduce complex technical and operational challenges, and those without generation significantly strain supply. The AESO is committed to advancing projects efficiently while ensuring a safe, reliable, and affordable grid.
The tension between speed-to-market and grid reliability is real, and BYOG may be the most pragmatic bridge available. For large power users and data centre developers in Alberta, the rules of engagement are changing and those who understand the new model earliest will be best positioned to move forward.
Alberta’s grid story is still being written. Whether BYOG becomes the new standard, or just one tool in a larger toolkit, will depend on how swiftly regulators, developers, and policymakers can align.
Stay tuned for further updates on Alberta’s Large Load Integration program and what it means for the future of energy-intensive industry in the province.
