Alberta’s ambitious plans for AI data centers are facing a significant hurdle due to a global shortage of gas turbines. The shortage, which is affecting the entire world, has led to a significant increase in prices and wait times of up to five years for the critical components.
Impact on Alberta’s Plans
The shortage has serious implications for Alberta’s plan to attract $100 billion in data center investment over the next four years. The province’s goal of providing reliable and affordable power to data centers is being threatened by the lack of available turbines.
The Alberta Electric System Operator has allocated 1.2 gigawatts of power to data centers through a competitive process, but the shortage of turbines is expected to impact the ability of data centers to connect to the grid. The operator has also announced a bridging provision that will allow data center developers to temporarily tie into the grid while their power plants are being built.
Global Demand for Turbines
The global demand for turbines is being driven by the rapid growth of data centers, which require a significant amount of power to operate. The shortage of turbines is also being exacerbated by the increasing demand for electricity from other sources, such as homes and businesses.
According to a report from Bloomberg, the cost of building a natural gas plant in the US has increased by 66% between 2023 and 2025, while the time it takes to complete construction has increased by 23% over the same period.
Original reporting: El Paso News (HLL/CB) — read the source article.