Alberta to Impose 2% Levy on Hardware at Data Centers (1)

Alberta plans to impose a 2% levy on the computer hardware used in large data centers starting at the end of next year.

The tax will apply to data centers with a load of 75 megawatts or larger and will go into effect Dec. 31, 2026, the province said in an emailed statement. The levy will be offset by provincial corporate income taxes so that, once a data center becomes profitable and pays corporate taxes, the levy won’t result in an additional tax burden.

Data center operators have been drawn to Alberta, a Canadian province with abundant and relatively cheap ...