D.R.I.V.E. Statement on Data Centre Investment in Red Deer

Red Deer is Open to Investment and Committed to Responsible Growth

RED DEER, Alberta — Red Deer D.R.I.V.E. Economic Development Association recognizes the growing public discussion surrounding potential data centre developments in Red Deer and across Alberta.

As Red Deer’s economic development organization, D.R.I.V.E.’s role is to position our community and region for investment, job creation, innovation and long-term economic growth.

Artificial intelligence and the digital economy are creating a new generation of major infrastructure investment around the world. Alberta has identified AI data centres as an important economic opportunity and is actively working to attract this investment to the province.

For Red Deer, our position is straightforward: we want to be a community that is open to investment, while ensuring growth occurs responsibly and delivers long-term value to our community.

Data centres have the potential to represent significant private capital investment and can create opportunities for construction, skilled trades, engineering, technology, energy, telecommunications and local supply chains. They can also contribute to the municipal tax base and strengthen the infrastructure required to support an increasingly digital economy.

At the same time, we recognize that residents have legitimate questions about proposed developments, including questions about location, power, water, noise, infrastructure and the potential impact on surrounding communities.

These questions are important.

We also understand the frustration residents may feel when they first learn about a potential development after significant preliminary work has already occurred. Many major investment prospects begin with confidential discussions and may involve non-disclosure agreements while a company determines whether a community, site and available infrastructure could even meet its requirements. At this early stage, there may be no project to announce and many investment leads never advance beyond this initial assessment.

D.R.I.V.E.’s responsibility at this stage is to help determine whether an investment opportunity is a potential fit for Red Deer before it progresses further. Confidentiality during early due diligence is not intended to exclude the community from the process; it allows the investor to assess whether there is a viable opportunity before a proposal reaches the formal planning, regulatory and public-engagement stages.

D.R.I.V.E. supports a transparent and thorough review of proposed projects through the appropriate municipal and provincial regulatory processes. Being investment ready does not mean approving every project. It means having clear processes, asking the right questions and determining whether an investment is the right fit for the community.

The Government of Alberta has established a framework for AI data centre development that addresses areas including electricity generation and grid access, water, environmental requirements, land use and the regulatory approval process. Data centre developments may require approvals from several different authorities, including the municipality, the Alberta Utilities Commission, the Alberta Electric System Operator and other provincial regulators, depending on the project.

The City of Red Deer is responsible for municipal planning, development and permitting decisions within the city and will provide information regarding its process for reviewing any applications it receives. D.R.I.V.E. respects that independent process.

Our responsibility is broader: to ensure Red Deer and Central Alberta remain competitive for the next generation of investment.

Alberta has significant advantages in this emerging sector, including energy resources, a skilled workforce, a strong construction and industrial base, telecommunications infrastructure and a climate that can provide advantages for data-centre cooling. The Province has made attracting AI and digital infrastructure investment part of its economic strategy.

Red Deer is strategically located in the centre of Alberta and has an opportunity to participate in this growing economy. We believe communities that approach new investment thoughtfully, balancing economic opportunity with responsible development will be best positioned to benefit.

Learn More

The Government of Alberta has developed information specifically for Albertans about AI data centres, including answers to questions related to investment, power, water, land use and community impacts:

Government of Alberta — AI Data Centres in Alberta https://www.alberta.ca/datacentres/index.html

Premier Danielle Smith has also released a video addressing common questions Albertans have raised about AI data centre development.

Watch the Premier's video:https://www.linkedin.com/posts/abdaniellesmith_most-albertans-have-probably-seen-the-headlines-activity-7492945337100226560-umL_

D.R.I.V.E. will continue to work with the City of Red Deer, the Government of Alberta, industry and our regional partners to understand emerging opportunities and pursue investment that strengthens Red Deer and Central Alberta for the long term.

About D.R.I.V.E.

Red Deer D.R.I.V.E. Economic Development Association is Red Deer’s economic development organization, working to position Red Deer and Central Alberta for investment, business growth, job creation, innovation and long-term economic prosperity. To learn more about D.R.I.V.E. or become a member, visit reddeerdrive.ca.

Peter Lacey

Chair

Red Deer D.R.I.V.E