It’s time for Alberta to start building the infrastructure that will power our future digital economy – and Bitcoin mining is only the beginning.
Last year, around this time, I was in Austin, TX with a group of delegates eager to learn about how the southern state had transformed itself into one of the world’s leading Bitcoin mining hubs. The Canadian Blockchain Consortium team and 32 member of our trade mission connected with Texas’s mining community, met with government officials, and received a presentation from Bitdeer, a giant operator with more than 560MW of mining capacity in the state.
I know I learned a tremendous amount from the trade mission, and I believe our delegates, representing 27 companies in energy and technology, got a lot out of the experience as well. The intent of our visit was to explore what the future of mining in Alberta could look like – how it could impact our energy sector, renewables development, electricity grids, and overall economic growth.
Alberta has long drawn comparisons to Texas, and when it comes to mining, we have many of the same advantages to gain. Billions of dollars of investment have poured into the state, creating a wide range of jobs in professions like electrical engineering and software, with mining operations consuming 2,100 MW of grid power.
Much of this development is concentrated in struggling, post-industrial small towns like Rockdale, TX, home to just 5,323 people, but has seen the growth of massive data centers owned by Bitdeer, Riot Blockchain, and Whinstone – a rare second chance at jobs and revenue for communities left behind by traditional industries.
Why has Texas achieved so much success in attracting the industry? Part of its transformation was having the right policies at the right time. In 2021, the world’s largest miner, China, banned mining operations, which urgently needed to shift to friendlier jurisdictions. Texas governor Greg Abbott saw an opportunity for the state and its energy sector, and with consultation from the Texas Blockchain Council, the state’s non-profit advocacy group for the industry, quickly implemented regulations that ensured companies would invest for the long term.
While it’s not at the same level as China’s overnight ban, a similar opportunity exists for Alberta. Digital asset mining is being stalled, restricted, our outright banned in many jurisdictions across the world. In December, Manitoba instituted an 18-month moratorium on new grid connections by miners. New York, which in 2021, had the largest mining sector in the US, recently paused new fossil fuel-powered mining projects for two years.
Europe also looks less stable to many miners – a proposed ban on most non-renewable mining failed to pass in the EU in 2022, but some countries, like Sweden, are instituting restrictive tax hikes that result in a defacto ban. This is the right time for Alberta to emerge as a fair and stable jurisdiction for the Bitcoin mining, and work with the industry to help it grow and create opportunities for Albertans.
Europe also looks less stable to many miners – a proposed ban on most non-renewable mining failed to pass in the EU in 2022, but some countries, like Sweden, are instituting restrictive tax hikes that result in a defacto ban. This is the right time for Alberta to emerge as a fair and stable jurisdiction for the Bitcoin mining, and work with the industry to help it grow and create opportunities for Albertans.
How can we build a mining sector that will benefit our entire economy? Our Digital Asset Mining Roadmap, developed by our Mining Committee member Ben Harper of Luxor Technologies, shows a path to collaboration between miners, regulators, grid operators, and the energy industry, and highlights the many economic advantages of mining to the province, especially to our energy sector and our key priority of job creation in rural areas.
Supporting the growth of mining will also benefit another of Alberta’s key priorities – the shift to green power. By 2030, our provincial electrical grids have a goal of 30% renewably sourced power. Because mining is a preferential power consumer that can generate revenue from solar or wind projects during off-peak hours, or in early stages before facilities are connected to the grid, mining can be a valuable source of funding to make project development more accessible.
Other benefits are less obvious. Over the last decade, Alberta has spent hundreds of millions of dollars on boosting its AI sector, with a focus on research and development. This has lead to a lot of innovation, but digital asset mining could help turn that into provincial revenue through helping fund large-scale cloud computing colocation facilities to meet the accelerating demand for compute power globally. Mining would de-risk development through an assured stream of revenue for these data centers, and this pairing of AI and mining in the same facilities is already happeningaround the world.
Alberta’s oil & gas industry can benefit significantly from mining, where portable data centers can turn stranded gas and potential emissions into a new source of revenue through partnering with the industry, like ExxonMobil’s collaboration with Crusoe Energy in North Dakota. We’re already home to leading grid mining companies like Hut 8 (TSE:HUT), and with the right polices that show we’re open for business, could attract more capital, development, and jobs.
What kinds of policies do we need to support the growth of mining? We’re seen from the experience of Texas during its electricity shortages that there needs to be clear regulations and open communication between grid operators and miners.
Alberta needs accessible banking, insurance, custody, and other services for managing digital assets. And we need tax incentives and other strategies for reducing the burden of the carbon tax on businesses that will create highly skilled and trade jobs and provide essential computing power to emerging industries like AI.
There are challenges as well as opportunities, but our province is a great place to live, work, and build a business, and promoting Alberta’s advantages is a key priority for the Canadian Blockchain Consortium. Last year during our trade mission to Austin, we learned about how Texas catalyzed the growth of its mining sector – and this year, we’re sharing Alberta’s potential with Texas.
During Stampede Week, we’re hosting a trade mission of technology companies and ecosystem leaders from the state here in Calgary and showcasing how our province could become a leader in digital asset mining – as a sister jurisdiction for companies seeking to expand out of Texas and diversify into new opportunities. I’m excited to host our delegates and show the international mining community the incredible things our province has to offer.
