Alberta Weighs State Gas Pipeline Control for AI Data Centres
A leaked cabinet report reveals Alberta plans to force private pipeline expansion or build its own network to secure gas supply for AI infrastructure.
Alberta is preparing to intervene directly in the natural gas transmission market to support a planned surge in AI data centre construction, according to a cabinet document leaked to The Narwhal. The report, intended for the Energy and Minerals Ministry, argues that private ownership of pipeline infrastructure is currently throttling growth and preventing the province from attracting hyper-scale data centre capital.
The government strategy outlined in the document involves rewriting legislation to compel private operators to invest in new capacity or, failing that, establishing state-owned corporations to build and operate the pipelines. Alberta officials are prepared to cover legal costs associated with these measures, citing the risk of losing investment if speed-to-market solutions for gas access are not implemented.
Stalled negotiations with TC Energy
The province has been in talks with TC Energy since 2024, as the company owns and operates Alberta’s primary natural gas pipeline system. These discussions aimed to force the operator to expand capacity but have reportedly stalled because TC Energy refuses to build based on speculative demand. The company proposed a plan requiring the province to assume greater financial liability for the system and impose higher rates on users, a structure the government deemed unviable.
The leaked document criticizes TC Energy’s historical underinvestment, describing the resulting network as dysfunctional and citing a market failure that leaves key growth regions without adequate gas access. Although the document notes that discussions escalated with the premier’s involvement and continued until 2026, it concludes that no viable solutions were reached despite extensive engagement.
Legislative push for state control
The cabinet report recommends escalating to direct measures, including the creation of government-owned entities to bypass private bottlenecks. This approach signals a shift from regulatory oversight to operational control, driven by the urgent need to secure energy infrastructure for the AI sector. The document frames this intervention as necessary to remain competitive with other jurisdictions courting data centre investors.
Alberta’s lobbyist registry confirms ongoing discussions between the government and TC Energy regarding strategic natural gas initiatives and market access support. While the authenticity of the leaked document has not been independently verified, the alignment with public lobbying records lends credibility to the account of prolonged and unresolved negotiations over pipeline capacity.
