- Alberta confirms 2% tax on computer hardware in massive data centers
- Data centers with 75 megawatt loads or higher are facing new charges
- Levy is scheduled to begin on December 31, 2026 throughout the province
The Canadian province of Alberta has confirmed plans to introduce a 2% tax on computer hardware used in large data centers.
The measure is scheduled to take effect on December 31, 2026 and will apply to facilities with a load of at least 75 megawatts.
The government notes that Levy is not intended to become a permanent additional burden, as once a data center becomes profitable and begins to pay corporate taxes, the fee is offset.
How the tax can affect operators
Large data centers depend on high-performance systems ranging from servers equipped with the largest SSD arrays to storage racks optimized for cloud storage.
These facilities are already working on tight margins in the first years of implementation when hardware expenses are at their highest.
A 2% fee on such equipment could affect calculations on where to build, especially as rival jurisdictions in North America are competing aggressively to attract investment.
Whether Alberta’s offset mechanism is enough to reassure operators is still an open question.
However, the province has emerged as a preferred destination due to its relatively cheap natural gas supply, as more than two dozen data center proposals, a total of over 12,000 megawatt demand, have already been submitted to Alberta Electric System Operator.
This increase reflects confidence in Alberta’s energy availability, but the tax introduces a new variable for decision making.
If costs rise, the attraction of ample energy may no longer be enough on your own to secure new projects.
Levy is not Alberta’s first attempt to control the pace of the growth of the data center, as earlier in 2025, its provincial justifier closed new connections to “large load projects” at 1,200 megawatts until 2028.
This decision gained resistance from some original communities that argued that restrictions could block them to pursue their own digital investments in digital infrastructures.
When seen with the new tax, such policies suggest a tightening environment that can complicate long -term planning for operators.
Alberta is now facing a delicate balance because the tax could ensure that large operators contribute more directly to provincial revenue.
It can also result in extra costs and limitations that can make companies explore alternatives in other provinces or across the border.
Via Bloomberg
