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AI’s Power Surge Challenges Canada’s Electricity Grid

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Artificial intelligence (AI) is reshaping economies worldwide, but its rapid growth is presenting significant challenges to Canada’s electricity grid. In a recent report from RBC Thought Leadership, Shaz Merwat highlights the transformative impact of AI on energy demand, the grid’s reliability, and emissions.

The Energy-Intensive Reality of AI

AI operations, such as OpenAI’s ChatGPT, consume substantial energy. A single ChatGPT query uses ten times more energy than a standard Google search. With the proliferation of AI applications and data centers, Merwat predicts Canada’s energy demands could surge. If all proposed data center projects proceed, these facilities may account for 14% of Canada’s total power needs by 2030, echoing similar trends in the United States.

Economic Opportunities vs. Environmental Costs

The construction of 20 to 30 new data centers represents a $100 billion economic opportunity, covering both infrastructure development and accompanying IT systems. However, meeting these energy demands while balancing environmental responsibilities is a pressing concern. Although Canada’s clean energy resources offer a strategic advantage, natural gas remains essential for its reliability. Adding six gigawatts of natural gas-powered data centers could increase Canada’s annual emissions by 3%, Merwat warns. Investments in carbon capture and storage (CCS) technology could help mitigate these emissions.

Strategic Advantages in Data Sovereignty

Local data centers are not only crucial for AI growth but also enhance Canada’s data sovereignty and cybersecurity capabilities. These facilities provide a critical edge in managing sensitive information securely within the country’s borders.

Harmonizing Regulations and Supporting SMEs

Merwat emphasizes the importance of regulatory alignment with the United States to maintain North American leadership in AI. The 2026 review of the Canada-United States-Mexico Agreement (CUSMA) is expected to refine digital trade policies, fostering cross-border collaboration in AI governance.

Additionally, encouraging AI adoption among Canada’s small and medium-sized enterprises (SMEs) is essential. SMEs, which contribute to half of Canada’s GDP, could boost the country’s productivity, currently lagging behind global competitors, by leveraging AI technologies effectively.

Balancing Growth and Sustainability

The RBC report underscores the dual nature of AI’s rise in Canada. While it brings unprecedented economic opportunities, it also raises critical challenges for energy consumption, grid reliability, and emissions. Addressing these issues requires investments in clean energy and advanced technologies like CCS, alongside cohesive regulatory frameworks. By tackling these challenges head-on, Canada can maximize AI’s potential while maintaining its environmental and economic commitments.

Deep Sky Secures Carbon Removal Credits with RBC and Microsoft to Pioneer Carbon Removal Technology

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Canadian carbon removal project developer Deep Sky has taken a significant step in the fight against climate change by selling carbon removal credits to founding buyers Royal Bank of Canada and Microsoft.

This agreement commits Deep Sky to remove 10,000 tonnes of CO₂ over the next decade through Deep Sky Labs, the world’s first carbon removal innovation and commercialization center, based in Innisfail, Alberta. This milestone marks a major advancement in private-sector investment in scalable carbon removal technologies.

Deep Sky Labs will serve as a central hub for testing and optimizing multiple Direct Air Capture (DAC) technologies under Canadian conditions. The facility aims to accelerate the development of low-cost, low-energy, and scalable solutions for carbon dioxide removal (CDR), supported by a proprietary software system that tracks and benchmarks operational data. The lab will initially deploy eight cutting-edge DAC technologies side-by-side, providing access to renewable energy and permanent carbon storage to ensure lifecycle analysis and third-party verification of carbon removal credits.

“This first group to invest catalytic capital in carbon removal gives us more confidence than ever that we can overcome humanity’s greatest challenge and reverse climate change,” said Deep Sky CEO Damien Steel. “Deep Sky Labs acts as a focal point for investors, suppliers, customers, and other partners seeking a direct path to top-tier carbon removal technologies.”

Among the selected DAC providers are leading-edge companies such as Airhive, Avnos, Phlair, Greenlyte, Mission Zero, NEG8 Carbon, Skyrenu, and Skytree, each bringing unique CO₂ removal technology to the Alberta-based facility. Chosen from nearly 100 global candidates, these technologies emphasize simplicity, scalability, and low energy requirements, forming a robust foundation for Deep Sky’s commitment to address the growing urgency of climate mitigation.

Deep Sky’s partnership with RBC and Microsoft represents a new model of corporate investment in carbon removal, allowing these organizations to support multiple DAC technologies through a single purchase. The founding buyers also have the option to purchase an additional one million tonnes of CO₂ removals from Deep Sky’s commercial pipeline, signaling long-term commitment and fostering continuous innovation in the carbon removal sector.

The Innisfail facility will create approximately 80 construction jobs and sustain 15 annual operational roles, generating an estimated $100 million in local investment over a decade. Future commercial plants across Canada could further expand economic benefits, with potential to employ up to 1,000 construction workers and 150 operational staff per site annually.

As companies worldwide strive to meet decarbonization goals, Deep Sky’s verified carbon removal credits offer a rigorous offset solution. Backed by strict Measurement, Reporting, and Verification (MRV) standards, these credits ensure transparency and additionality in offsetting corporate emissions.

Women in Cleantech: RBC Accelerator’s New Cohort Paves the Way for a Sustainable Future

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MaRS has announced the 10 entrepreneurs participating in the next cohort of the RBC Women in Cleantech Accelerator.

The RBC Women in Cleantech Accelerator helps women overcome challenges in the cleantech sector by providing a strong support system, collaboration opportunities, and essential tools for success. This two-year intensive program is designed to help women-led Canadian ventures scale their climate change solutions globally, while embracing diversity, equity, and inclusion.

“As we kick off the third cohort, we’re proud to build on the successes of past participants. They’ve secured funding, obtained grants, hired top talent, and advanced product development,” says Alison Nankivell, CEO of MaRS Discovery District.

By offering mentorship, networking, community, and access to capital, the program isn’t just supporting individual entrepreneurs — it’s investing in a sustainable future for all.

Let’s meet some of the new cohort members, including four working on clean energy initiatives:

  • Zaffia Laplante, co-founder and COO of SkyAcres Agrotechnologies: Developing a low-energy indoor farming system in Surrey, B.C.
  • Aditi Sitolay, founder and CEO of Synoro Medical Technologies: Creating low-carbon healthcare reprocessing in Vancouver.
  • Vida Gabriel, founder and COO of TerraFixing: Developing direct air capture (DAC) technology for cold, remote locations in Ottawa.
  • Christine Gabardo, co-founder and CTO of CERT Systems: Producing essential chemicals without fossil fuels in Toronto.

“We wouldn’t have achieved our success without the RBC Women in Cleantech Accelerator program,” says Natasha Kostenuk, co-founder and CEO of Calgary’s Ayrton Energy. “My advice to the next cohort is to lean into the group and take full advantage of the opportunities.”