Why fixed electricity rates are rising in Alberta

Alberta’s fixed electricity rates are on the rise, and one of the most powerful forces driving this change is the surge in electricity demand from AI, emerging technologies, and the rapid expansion of data centres.

Between Q1 2024 and Q1 2025, demand from AI data centres alone jumped from 200 MW to 11,879 MW—a 60-fold increase. This unprecedented growth is reshaping Alberta’s energy landscape and putting immediate pressure on the market.

For anyone evaluating energy options, it’s critical to understand how this shift affects pricing, risk, and the case for locking in a fixed rate now.

What fixed rates reflect: The role of futures

Fixed electricity rates are based on futures contracts—prices agreed on today for electricity to be delivered months or years in the future. These forward prices are shaped by expectations around supply, demand, policy, and market risk.

Right now, those expectations are shifting rapidly. With AI infrastructure growing at breakneck speed and power demand spiking, market participants are paying more to secure future electricity, and those increases are reflected in today’s fixed-rate plans.

Surging demand from AI and emerging technologies

The rise of machine learning, blockchain, and other energy-intensive technologies—paired with the aggressive buildout of data centres—is driving Alberta’s new era of electricity demand.

According to  Alberta Electric System Operator (AESO)’s 2024 Long-Term Outlook, demand will continue rising over the next two decades due to:

• Massive growth in digital infrastructure
• Industrial electrification in oil and gas, manufacturing, and transportation
• Urbanisation and population increases

But what’s new is the speed and scale of this growth. In just 12 months, Alberta saw more than 11,000 MW of new load tied to AI-related development. That’s not a forecast, it’s already happening.

How does it affect the market and your rates

As energy buyers rush to lock in power for the future, especially large industrial and tech-sector users, forward prices rise. Retailers incorporate those higher prices into their fixed-rate offerings.

When you add in:

• Federal clean electricity targets
• Carbon pricing
• Tighter reliability and emissions standards

…it becomes clear that fixed rates today reflect not just current costs, but the risks and complexity of the years ahead.

For consumers and businesses alike, locking in a fixed rate now can provide protection against this volatility. With Alberta’s grid evolving faster than ever, price stability is becoming harder to find—and more valuable to secure.