The Saskatchewan government and SaskPower denied that a coal-power extension was approved to supply electricity to a Bell Canada AI data centre [1, 2].
The dispute centers on whether the province prioritized the energy needs of a private corporation over environmental commitments or general grid stability. If the extension was tailored for a single client, it could signal a shift in how the province manages its energy transition.
The provincial NDP opposition alleged that the decision to extend the life of coal-generated electricity was a political favor to Bell Canada [1, 2]. The company is currently developing an AI data centre in Regina [1, 2].
SaskPower and government officials rejected these allegations in March 2024 [1, 2]. They said the decision to extend coal power, which was made earlier in 2023, was based on grid security and reliability [1, 2].
Officials said the move was intended to ensure a stable power supply for the entire province, not to accommodate the requirements of any single customer [1, 2]. The coal-fired generating station involved is located near Estevan [1, 2].
The NDP argued that the timing and nature of the extension suggested a direct link to the energy-intensive demands of AI infrastructure [1, 2]. However, the government said that the reliability of the electricity grid remained the primary driver for the decision [1, 2].
“The government said the decision was based on reliability and grid-security considerations.”
This conflict highlights the growing tension between provincial carbon-reduction goals and the immense energy demands of artificial intelligence. As AI data centres require significant and constant power, governments may face increasing pressure to maintain legacy fossil fuel infrastructure to prevent grid instability, potentially slowing the transition to renewable energy.