Renewables May Bridge Alberta's AI Data Center Power Gap, Says TD

Alberta aims to position itself as the premier location for building artificial intelligence (AI) data centers in North America, said TD.

However, limited electric grid capacity is slowing development, writes the bank in a note to clients.

Although the province has abundant natural-gas resources, expansion of gas generation is challenged by global turbine shortages and rising capital costs of new gas generation, points out TD.

The global gas-turbine market is dominated by a handful of companies. The major manufacturers are said to be facing order backlogs stretching over five years for large turbines. Wait times for smaller turbines are shorter but rising. Equipment shortages have already contributed to the cancellation of gas power plant projects in the United States.

Given the huge volume of data-center capacity seeking to connect to the Alberta grid, the province is exploring a 'bring your own generation' model as an interim solution, states the bank. While new gas generation is the preferred resource for powering surging AI-energy demand as seen in the U.S., ongoing gas-turbine shortages could create opportunities for other sources of power, including renewables.

For some of the Alberta data-center projects, solar and wind could offer a relatively faster pathway to meet their electricity demand. In addition, battery costs have been falling steadily, reaching their lowest level in 2025, down 27% from 2024, which makes hybrid renewable-battery projects more cost competitive, adds TD. Storage helps firm up intermittent generation from solar and wind, making the hybrid systems better suited to power data centers, though grid backup will still be necessary.

However, uncertainty around power project economics will likely persist for some time as disruptions to gas and critical mineral supply chains caused by the closure of the Strait of Hormuz will take months to resolve, assuming the new deal between the U.S. and Iran leads to lasting peace, according to the bank.

High Tide Shares Jump 15% After Hours as Its Fiscal Q2 Profit and Record Revenue Top Estimates

High Tide (HITI.V, HITI), up 15% at look in after-hours Nasdaq trading, after the cannabis retailer on Monday said it swung to a fiscal second-quarter profit on record revenue, with both earnings and sales exceeding analyst estimates.The company reported a profit of C$24,000, or C$0.01 per share, in the quarter ended April 30, compared to a loss of C$2.8 million, or C$0.04, in the prior-year period. FactSet expected a loss of C$0.02 per share in the last quarter.The company reported record revenue C$179.3 million for the period, compared to C$137.8 million during the same period last year, an increase of 30% year-over-year, the fastest growth rate in 11 quarters. It exceeded FactSet analysts' consensus estimate of C$171.2 million.High tide's adjusted EBITDA stood at record C$13.9 million in the second quarter. This was up 73% compared to last year, marking the fastest growth rate in nine quarters, and up 21% sequentially despite there being three fewer days in the quarter, the company said."Our second quarter results highlight the strength of High Tide's diversified growth strategy and our ability to execute at a high level across multiple geographies. Through the continued integration of Remexian, we have expanded our supply chain capabilities, eliminated unnecessary intermediaries, and are procuring biomass at materially lower costs than Remexian could on its own, enabling us to achieve key operational and financial objectives approximately 90 days ahead of our internal expectations," said chief executive Raj Grover.In its outlook, the company reiterated its long-term goal of surpassing 350 retail locations nationwide and opening 20-30 locations in calendar 2026, mostly through organic growth, while also evaluating supplemental M&A opportunities of varying sizes. It also anticipates "significant" growth in its white-label portfolio and expects sales of its higher-margin white-label brands to reach approximately 20% of total sales.The results come after High Tide earlier Monday said it is taking yet another step to expand its bricks-and-mortar retail cannabis operations, by entering into a definitive agreement to acquire J. Supply Holdings Inc., operating as Northern Helm, resulting in High Tide's acquisition of four of the six retail cannabis stores currently operated by Northern Helm in Ontario for $7.74 million. These acquisitions will bring High Tide's total store count to 228 Canna Cabana locations across Canada and 103 in the province of Ontario.Separately, High Tide said it had secured credit approval for a loan agreement with Bank of Montreal in respect of new senior secured credit facilities in the principal amount of C$40 million. Closing of the new credit facilities remains subject to the satisfaction of customary closing conditions and upon closing, will replace the company's existing senior credit facility.Shares of the company were trading up US$0.33 to US$2.58 at last look on Nasdaq, after closing down C$0.05 to C$3.18 on TSX Venture Exchange.

$HITI.V

Renewables May Bridge Alberta's AI Data Center Power Gap, Says TD

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