AI Data Centres Strain Power Supply in New Zealand and Alberta

Singapore‑based Datagrid has secured approval for a NZ$3.5 billion, 280 MW AI data centre near Invercargill, slated to open in 2028. The facility will become New Zealand’s second‑largest electricity user after the Tiwai Point aluminium smelter, prompting debate over its impact on a grid that can face shortages during dry years. Analysts suggest that if the centre can shift its electricity use to periods of abundant wind and solar generation, it could act as a flexible grid asset rather than a pure burden.

In Alberta, Canada, the provincial government’s ambition to attract $100 billion of AI data‑centre investment is hampered by a global shortage of gas turbines. Lead times of up to five years and soaring prices have delayed projects, including a $4.6 billion natural‑gas plant built to supply a $15 billion Meta data centre. The province’s reliance on gas‑fired generation—about 77% of its electricity mix—raises concerns about cost, emissions and the viability of renewable alternatives for round‑the‑clock data‑centre power.

Both regions illustrate the growing tension between rapid AI‑driven data‑centre expansion and the need for reliable, affordable, and low‑carbon electricity supply.