A two percent levy will apply to computer equipment in grid-connected data centres over 75 MW.
On August 27, 2025, following a six-week consultation with industry stakeholders, the Government of Alberta introduced a new levy framework for data centres to generate revenue for the provincial government.
A two percent levy on computer hardware will apply to grid-connected data centres of 75 megawatts (MW) or greater. The levy is scheduled to come into effect on December 31, 2026, and will be fully offset against provincial corporate income taxes; once a data centre is profitable and paying corporate income tax, the levy will not result in an additional tax burden.
In addition, all data centres of 75 MW or greater will be recognized as designated industrial properties, with property values being assessed by the province. Given that specialized computer hardware becomes obsolete faster than other asset types due to rapid technological advancements, depreciation will be on an accelerated 5-year schedule.
The Government of Alberta is still exploring options alongside the industry’s input, such as pre-paid annual taxes or deferral programs to ease cash-flow during construction and early years of operation.
RMA has since confirmed that only land and buildings associated with data centres will be subject to municipal assessment and taxation, with the computer hardware not being eligible. This greatly reduces the potential tax revenue for rural municipalities, as this hardware carries the highest assessable value.
As data centres are a relatively new issue in Alberta and this levy takes a new approach to provincial revenue generation from industry, RMA staff have been working to develop positions and advocacy approaches to ensure that the rural municipal perspective is reflected in future decisions that impact this growing industry and the rural municipalities in which data centres are located.
RMA is still reviewing the province’s levy announcement, the provincial Data Centre Strategy, and the Alberta Electric System Operator’s (AESO) Large Load Allocation decision, and staff continue to research the issue.
Joseph Kay
Policy Advisor
587.689.5484
joseph@rmalberta.com
Warren Noga
Manager of Policy and Research
825.319.2285
warren@rmalberta.com