Data Centre Regulation

(no amdt) ALBERTA REGULATION 117/2026 Electric Utilities Act DATA CENTRE REGULATION Table of Contents 1 Interpretation 2 Large data centres 3 Aggregation of data centres 4 Underutilized facilities 5 Tethered facilities 6 Priority for tethered data centres 7 Criteria for system access service for large data centres 8 System access service for tethered data centres 9 System access service for bridged data centres 10 Load management for data centres 11 ISO rules 12 Expiry Interpretation 1 (1) For the purposes of the Act and this Regulation, “data centre” means a facility or facilities, or a proposed facility or facilities, the purpose of which is to house and operate computing equipment for applications including data hosting and cloud computing, digital asset mining, artificial intelligence and machine learning and digital services and content delivery. (2) In this Regulation, (a) “affiliate” has the meaning given to it in the Business Corporations Act ; (b) “bridged data centre” means a tethered data centre that is provided with system access service in accordance with section 9; (c) “demand” means the rate of electric energy that may be consumed by a data centre from the transmission system instantaneously, measured in megawatts; (d) “request leading to designation” means a system access service request that led to a data centre, proposed data centre, generating unit, proposed generating unit, energy storage facility or proposed energy storage facility being designated as a tethered data centre, tethered generating unit or tethered energy storage facility, as the case may be; (e) “system access service request” means a request for system access service or a modification to system access service or a request that is deemed to be a system access service request under section 4(2); (f) “tethered data centre” means a large data centre, or a proposed large data centre, that has been designated as a tethered data centre under section 5(1); (g) “tethered generating unit or tethered energy storage facility” means a generating unit or energy storage facility, or a proposed generating unit or proposed energy storage facility, that is designated as a tethered generating unit or tethered energy storage facility under section 5(2). Large data centres 2 (1) For the purposes of this Regulation, a data centre is a “large data centre” if the data centre has, or in the case of a proposed data centre will have, a maximum demand directly from the transmission system equal to or greater than (a) 75 megawatts, or (b) a lower maximum demand threshold established under subsection (2). (2) The Independent System Operator may establish and apply a lower maximum demand threshold for the purpose of determining whether data centres are, or proposed data centres will be, large data centres if the Independent System Operator determines that a lower threshold is required to (a) ensure the safe, reliable and economic operation of the interconnected electric system in accordance with section 17(h) of the Act, or (b) maintain the reliability and adequacy of the interconnected electric system in accordance with section 29(1)(b) of the Act. Aggregation of data centres 3 For the purposes of this Regulation, the Independent System Operator may treat 2 or more data centres as a single data centre if (a) in the opinion of the Independent System Operator, the data centres are or will be physically or operationally integrated and are or will be located on the same parcel or adjacent parcels of land, and (b) one or more of the following circumstances exists: (i) the same person or an affiliate of that person receives system access service for the data centres; (ii) the same person or an affiliate of that person is requesting system access service or a modification to system access service for the data centres; (iii) a person or an affiliate of that person is receiving system access service for a data centre or data centres and is requesting system access service or a modification to system access service for another data centre or data centres. Underutilized facilities 4 (1) A person may request that the Independent System Operator declare a generating unit or energy storage facility an underutilized generating unit or underutilized energy storage facility and, on receiving such a request, the Independent System Operator may, if doing so will not compromise the reliability and adequacy of the interconnected electric system, (a) declare the generating unit or energy storage facility an underutilized generating unit or underutilized energy storage facility, and (b) determine the rate at which the generating unit or energy storage facility is currently providing electric energy to the transmission system. (2) A request for a generating unit or energy storage facility to be declared an underutilized generating unit or underutilized energy storage facility is deemed to be a request for modified system access service for the purposes of this Regulation. (3) If a generating unit or energy storage facility is declared to be an underutilized generating unit or underutilized energy storage facility, the Independent System Operator may deem for the purposes of this Regulation that the generating unit or energy storage facility has been provided modified system access service. Tethered facilities 5 (1) When responding to a system access service request for a large data centre or proposed large data centre, the Independent System Operator may designate the large data centre or proposed large data centre as a tethered data centre if (a) the person requesting system access service or a modification to system access service has, as part of that request and in the form and manner determined by the Independent System Operator, committed to the satisfaction of the Independent System Operator to associate that request with a system access service request or system access service requests for (i) a generating unit or generating units, (ii) a proposed generating unit or generating units, (iii) an energy storage facility or energy storage facilities, or (iv) a proposed energy storage facility or energy storage facilities, and (b) any additional criteria that may be established under subsection (7) are met. (2) When responding to a system access service request for a generating unit or energy storage facility, or a proposed generating unit or proposed energy storage facility, the Independent System Operator may designate the generating unit or energy storage facility, or the proposed generating unit or proposed energy storage facility, as a tethered generating unit or tethered energy storage facility if (a) the person requesting system access service or a modification to system access service has, as part of that request and in the form and manner determined by the Independent System Operator, committed to the satisfaction of the Independent System Operator to associate that request with a system access service request for a large data centre or proposed large data centre, and (b) the criteria in subsection (4) and any additional criteria that may be established under subsection (7) are met. (3) The Independent System Operator may (a) consider system access service requests referred to in subsections (1) and (2) concurrently or separately, and (b) designate a large data centre or proposed large data centre as a tethered data centre (i) concurrently with designating a generating unit, proposed generating unit, energy storage facility or proposed energy storage facility as a tethered generating unit or tethered energy storage facility, or (ii) before or after designating a generating unit, proposed generating unit, energy storage facility or proposed energy storage facility as a tethered generating unit or tethered energy storage facility. (4) A generating unit or energy storage facility, or a proposed generating unit or proposed energy storage facility, may only be designated as a tethered generating unit or tethered energy storage facility if the Independent System Operator determines that the following criteria are met, as applicable: (a) in the case of an existing generating unit or energy storage facility, (i) there is a request for a modification to system access service for the generating unit or energy storage facility that is for an increase in the capacity of the generating unit or energy storage facility to provide electric energy to the transmission system, or (ii) the generating unit or energy storage facility (A) has been declared an underutilized generating unit or underutilized energy storage facility, and (B) is capable of providing additional electric energy to the transmission system relative to the rate at which the generating unit or energy storage facility is currently providing electric energy to the transmission system as determined under section 4(1)(b); (b) in the case of a proposed generating unit or proposed energy storage facility, the proposed generating unit or proposed energy storage facility must be new; (c) the generating unit, energy storage facility, proposed generating unit or proposed energy storage facility must, together with any other generating units, energy storage facilities, proposed generating units or proposed energy storage facilities associated with or committing to be associated with the same large data centre, do the following at a rate determined under subsection (5) that is equal to or greater than the maximum demand of the large data centre: (i) be capable of providing electric energy to the transmission system, in the case of a request for initial system access service; (ii) have an increased capacity to provide electric energy to the transmission system, in the case of a request for modified system access service that is for an increase in capacity to provide electric energy to the transmission system; (iii) be capable of providing additional electric energy to the transmission system relative to the rate at which the generating unit or energy storage facility is currently providing electric energy to the transmission system as determined under section 4(1)(b), in the case of a request to be declared an underutilized generating unit or underutilized energy storage facility; (d) in all cases, the generating unit or energy storage facility, or the proposed generating unit or proposed energy storage facility, must be capable of providing electric energy to the transmission system reliably and predictably under normal operating conditions. (5) For the purpose of subsection (4)(c), the Independent System Operator must determine the rate at which generating units or energy storage facilities, or proposed generating units or proposed energy storage facilities, must do the following, as the case may be: (a) be capable of providing electric energy to the transmission system; (b) have an increase in capacity to provide electric energy to the transmission system; (c) be capable of providing additional electric energy to the transmission system. (6) When determining a rate referred to in subsection (5), the Independent System Operator must act in accordance with its duty under section 29(1)(b) of the Act to provide system access service on the transmission system in a manner that maintains the reliability and adequacy of the interconnected electric system. (7) If the Independent System Operator considers it necessary to maintain the reliability and adequacy of the interconnected electric system, the Independent System Operator may establish additional criteria that a large data centre, proposed large data centre, generating unit, energy storage facility, proposed generating unit or proposed energy storage facility must meet to be designated as a tethered data centre, tethered generating unit or tethered energy storage facility. (8) The Independent System Operator (a) must establish criteria for maintaining designation as a tethered data centre, tethered generating unit or tethered energy storage facility, and (b) may revoke the designation of a tethered data centre, tethered generating unit or tethered energy storage facility as a tethered data centre, tethered generating unit or tethered energy storage facility if the criteria for maintaining the designation are no longer met. (9) Designation as a tethered data centre, tethered generating unit or tethered energy storage facility ceases when the following have been provided with the system access service or modified system access service requested in the request leading to designation: (a) the data centre; (b) all generating units and energy storage facilities that have been designated as tethered generating units or tethered energy storage facilities as a result of committing to associate their system access service requests with system access service requests for the data centre. Priority for tethered data centres 6 The Independent System Operator must prioritize the processing of a system access service request for a tethered data centre over the processing of a system access service request for a large data centre that is not a tethered data centre or a proposed large data centre that is not a tethered data centre. Criteria for system access service for large data centres 7 (1) The Independent System Operator may establish criteria that a person requesting system access service or a modification to system access service for a large data centre, or a proposed large data centre, must meet to the satisfaction of the Independent System Operator, including criteria relating to (a) site control for the site where the large data centre is or will be located, (b) municipal zoning approvals, (c) financing, and (d) the issuance of permits or water licences. (2) If the Independent System Operator establishes criteria that apply to a person requesting system access service or a modification to system access service, the person must meet those criteria before the requested system access service or modification to system access service is provided to the person. System access service for tethered data centres 8 (1) Subject to section 9, the Independent System Operator must not provide system access service or modified system access service for a tethered data centre unless a tethered generating unit or tethered energy storage facility associated with the data centre has been provided with the system access service or modified system access service requested in the request leading to designation for the tethered generating unit or tethered energy storage facility. (2) Subject to section 9, the Independent System Operator must not provide system access service or modified system access service for a tethered data centre at a rate that exceeds the combined rate at which tethered generating units or tethered energy storage facilities associated with the data centre (a) are capable of providing electric energy to the transmission system, in the case of tethered generating units or energy storage facilities that have requested initial system access service, (b) have increased capacity to provide electric energy to the transmission system, in the case of tethered generating units or energy storage facilities that have requested modified system access service that is for an increase in capacity to provide electric energy to the transmission system, or (c) are capable of providing additional electric energy to the transmission system relative to the rate at which the generating units or energy storage facilities were providing electric energy to the transmission system as determined under section 4(1)(b). System access service for bridged data centres 9 (1) In accordance with this section and section 10, the Independent System Operator may provide a tethered data centre with system access service or modified system access service before one or more tethered generating units or tethered energy storage facilities associated with the data centre have been provided with the system access service or modified system access service requested in the request leading to designation or requests leading to designation for the generating unit or energy storage facility, or the generating units or energy storage facilities. (2) A tethered data centre may only be provided with system access service or modified system access service before tethered generating units or tethered energy storage facilities associated with the data centre have been provided with the system access service or modified system access service requested in the requests leading to designation for the generating units or energy storage facilities if (a) all the tethered generating units or energy storage facilities have been approved by the Commission under section 11 or 13.01 of the Hydro and Electric Energy Act , and (b) any requirements established under subsection (3) and any criteria established under subsection (6) have been met. (3) The Independent System Operator may establish other requirements that a tethered data centre, tethered generating unit or tethered energy storage facility must meet for a tethered data centre to be provided with system access service or modified system access service before the tethered generating units or tethered energy storage facilities have been provided with the system access service or modified system access service requested in the requests leading to designation for the generating units or energy storage facilities. (4) The Independent System Operator may (a) determine the date on which system access service or modified system access service will first be provided to a bridged data centre and when it will be suspended or terminated, subject to it being continued under subsection (5)(b), and (b) set a limit on the maximum demand by a bridged data centre. (5) System access service or modified system access service may be provided to a bridged data centre for a maximum of 3 years from when it is first provided, or for a shorter period as determined under subsection (4)(a), and may be (a) suspended or terminated at the end of that period if one or more tethered generating units or tethered energy storage facilities associated with the data centre have not been provided with the system access service or the modified system access service requested in the requests leading to designation for the generating units or energy storage facilities, or (b) continued at the end of that period if the tethered generating units or tethered energy storage facilities associated with the data centre have all been provided with the system access service or the modified system access service requested in the requests leading to designation for the generating units or energy storage facilities. (6) The Independent System Operator must establish and apply criteria to determine whether and the extent to which a bridged data centre may exchange electric energy before the tethered generating units or tethered energy storage facilities associated with the data centre have (a) begun to exchange electric energy, in the case of new generating units or new energy storage facilities, (b) increased capacity to provide electric energy to the transmission system, in the case of modified system access service that is for an increase in capacity to provide electric energy to the transmission system, or (c) provided additional electric energy to the transmission system, in the case of a generating unit or energy storage facility that has been declared an underutilized generating unit or underutilized energy storage facility. (7) The Independent System Operator may, in accordance with the Independent System Operator’s duty to maintain the reliability and adequacy of the interconnected electric system, establish and apply a limit on the maximum demand of all bridged data centres that are or will be provided system access service. (8) The Independent System Operator may suspend, in whole or in part, or terminate system access service for a bridged data centre at any point during the period referred to in subsection (5) if (a) the criteria for exchanging electric energy established under subsection (6) are not being met, or (b) the Independent System Operator determines that a system access service request for a tethered generating unit or tethered energy storage facility has been cancelled, withdrawn or abandoned. (9) If system access service for a bridged data centre is (a) suspended under this section, the suspension is subject to any terms and conditions imposed by the Independent System Operator, or (b) terminated under this section, the data centre may submit a new request for system access service. (10) In accordance with section 5(9), a bridged data centre will cease to be a bridged data centre once all tethered generating units or tethered energy storage facilities have been provided with the system access service or modified system access service requested in the requests leading to designation for the tethered generating units or tethered energy storage facilities. Load management for data centres 10 When the Independent System Operator determines that (a) there will be an inadequate supply of electricity, the Independent System Operator must require a reduction in demand for bridged data centres before requiring a reduction in demand for all other electricity market participants receiving system access service, or (b) mandatory load shedding is required to mitigate a circumstance in which the Independent System Operator determines that there is an inadequate supply of electricity, the Independent System Operator must require a reduction in demand for large data centres before a reduction in demand for other electricity market participants receiving system access service. ISO rules 11 (1) The Independent System Operator shall, in accordance with the Act, make or amend any ISO rules as necessary to facilitate the requirements and objectives of this Regulation. (2) The Commission may approve an ISO rule made under section 20(1)(i.1) of the Act only if the Commission is satisfied that the ISO rule is not technically deficient and is in the public interest. (3) When considering whether to approve an ISO rule made under section 20(1)(i.1) of the Act, the Commission must not consider whether the rule supports the fair, efficient and openly competitive operation of the electricity market. Expiry 12 For the purpose of ensuring that this Regulation is reviewed for ongoing relevance and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation (a) must be reviewed on or before May 31, 2030, and (b) expires on May 31, 2035.