After Intense Lobbying, Carney Allows Gas-Powered Data Centres in Alberta
Energy firm pushed federal officials to scale back clean-electricity rules tied to AI sector
by Taylor C. Noakes
Updated 11:46, Mar. 27, 2026 | Published 6:30, Mar. 27, 2026
he Alberta electricity company Capital Power, which is developing a new, large artificial intelligence data centre in the province powered by natural gas, lobbied the federal Mark Carney government dozens of times in 2025 to eliminate clean-energy regulations, DeSmog has learned.
These regulations were subsequently dropped from a fossil fuel accord that the prime minister signed with the Government of Alberta this past November, allowing new, large data centres fuelled by gas turbines to proceed.
“We’ve got a new paradigm that allows us to look at growth capital” for Canadian gas-powered AI projects, Capital Power chief executive officer Avik Dey said in reaction to the Carney government announcing it would suspend the regulations.
The term “data centre” appears at least twenty-five times in notes from Capital Power’s interactions with the federal government, while the term “emissions” appears seventeen times, and “clean-energy regulations” and “net zero” appear each at least fourteen times.
The AI boom is itself driving a massive development of gas-power generation: over 1,000 gigawatts worldwide, a quarter of which is in the United States. Though AI data centres can be powered by any form of electricity, the gas industry has marketed gas power as cheap, efficient, and reliable.
What a stunning demonstration of how data centre development is directly and materially boosting fossil fuels. After ferocious lobbying the Carney government caved and killed off environmental rules to allow fossil gas power plants to be built for data centres:
thewalrus.ca/after-intens...