Interview with Danielle Smith, Premier of Alberta, Canada

26 Jun Interview with Danielle Smith, Premier of Alberta, Canada

Alberta’s economy continues to outperform much of Canada, recording the highest provincial GDP per capita. What trends are shaping Alberta’s economic outlook today and what advantages continue to set the province apart?

Alberta has always been strong in traditional energy, whether that is the oil sands, conventional oil, natural gas or natural gas liquids. We are now entering a new phase, however, where the federal government is working with us to expand access to new markets, particularly in Asia. As a result, these sectors are poised for continued growth.

We are also seeing the emergence of a new aerospace and defense industry. Alberta hosts De Havilland’s water bomber development and WestJet’s headquarters, linking the province to international markets and enhancing opportunities in both tourism and trade. This has helped attract companies such as Lufthansa Technik, which is establishing an engine refurbishment facility in the province, and CAE, which is expanding pilot training operations. As Canada moves toward its 5% NATO commitment, Alberta is also well positioned to support future defense investments. With four major military bases located in the province, we anticipate opportunities to expand both air force and army capabilities and we are actively working with the federal government to ensure Alberta secures its share of future procurement projects.

Tourism is another major growth area. We are working to double the size of our tourism industry through investments in new resorts in the Rocky Mountains, supporting both ski tourism and year-round visitor experiences. We also have a thriving film and television sector.

Agriculture remains one of Alberta’s largest industries. In addition to producing and exporting beef, grains and canola, we continue to expand our agri-food processing capacity to create more value-added products. Our forestry sector is equally strong, benefiting from some of the highest-quality fiber in the world due to our cold-climate growing conditions, which supports a range of value-added forestry products.

Across the board, we are seeing significant investment and growth. At the same time, Alberta is positioning itself as a leader in emerging industries, including lithium, geothermal energy, hydrogen, helium and critical minerals such as titanium and vanadium. Whatever your area of interest, there is an opportunity to participate in Alberta’s economy. That includes venture capital, where we have attracted approximately $700 million annually in investment. We also have several large-scale companies, such as the Alberta Machine Intelligence Institute which is one of three premier research institutes in Canada, that have created strong ecosystems that support the growth of other technology businesses. We are very excited about the future. There is a great deal to look forward to.

What makes Alberta so attractive to tech companies and how is it addressing key challenges in AI and data center development?

One thing we’ve been watching is the challenges in other jurisdictions, particularly where there has been resistance from local populations. That has helped us take a more proactive approach. For example, we saw concerns elsewhere around rising power bills. So we made it clear to AI data centers that if they want to come to Alberta, they will need to build their own power. If they generate more than they need, they can sell it back to the grid so we can help keep prices low for consumers.

We’ve also seen concerns around water consumption. That’s why we are encouraging closed-loop systems, air cooling and glycol-based solutions to minimize impacts on our water supply. There are also concerns around noise and light pollution and I think there are new technologies and practices that can help mitigate those as well. More broadly, there is public concern about what this growth means for communities. Our role is to demonstrate how AI can support people by creating jobs, improving productivity and ultimately enhancing quality of life. On the opportunity side, Alberta has clear advantages. We have a cold climate which reduces cooling needs and abundant natural gas, which allows for fast, large-scale power generation. We also have established industrial zones with streamlined regulatory processes, which makes it easier to move projects forward. Overall, we are trying to strike the right balance — addressing concerns seen elsewhere while supporting investors through our AI data center concierge team which helps guide them through the different processes so AI data center projects can move forward efficiently.

Agriculture is one of Alberta’s most important industries. How important is California in supporting Alberta’s agri‑food growth?

It’s a very balanced relationship with California. With its year-round sunshine, California is able to produce products that we need to import throughout the year. In turn, we export products such as our beef, canola and potatoes. We’re the largest potato producer in the country, so there is a natural symmetry — California fills some of our seasonal needs and we help fill gaps in their supply as well. Looking ahead, we also have an agri-food processing investment tax credit, which provides a 12% rebate on capital costs for companies that set up operations here and add value to their products. That could include anything from flour milling to processing potatoes into French fries. These are the kinds of investments we’ve been successful in attracting in recent years and we would like to see more of that going forward.

As investor confidence returns to Alberta, what is needed to sustain long-term energy growth and how important is pipeline expansion to that effort?
We are open to building pipelines in all directions — north, south, east and west. In recent years, and following some policy changes, we have seen several companies come forward with plans to expand export capacity. We already have products moving south into the United States through Enbridge, which is our main line, as well as South Bow and Bridger, which have announced a partnership to move additional volumes into the U.S. market. We also have the Trans Mountain pipeline, which is looking at further expansion. Alberta is also proposing a new one-million-barrel-a-day pipeline to Canada’s west coast that we are working with the federal government to advance through the approvals process. Beyond that, there are discussions around a potential pipeline to Hudson Bay, supported by icebreaker access to Europe. There is also consideration of a route through Ontario that would connect to the Great Lakes system and ultimately provide access to European markets.

We are looking at how we can build pipeline capacity in all directions. There are also proposals for transporting oil by rail, which we already do successfully and have done historically to complement ahead of pipeline development. There are potential projects both to the west coast all the way to Nova Scotia.

The key point is that we see this as an opportunity not only to continue serving our most important trading partner, the United States, but also to expand into new markets. We support the U.S. in its efforts toward global energy dominance and we believe Alberta plays a critical role in that. At the same time, these new export pathways would allow us to better support Europe’s energy needs and importantly, with access through the West Coast, to also strengthen ties with our Asian allies and partners.

Alberta recently announced $20 million in funding for emissions-reduction technologies. How is the province balancing economic growth with environmental performance?

That is just one of many rounds we have done. We have a program where we charge companies if their emissions are above a benchmark for their industry. The funds collected then go into a dedicated pool, which we reinvest into innovative technologies. Over the past several years, we have invested billions through this approach. For example, we already have carbon capture utilization and storage projects operating at scale and sequestering megatons of emissions each year. That includes the Shell Quest Carbon Capture and Storage project, as well as the Enhance Energy Alberta Carbon Trunk Line.

We also have programs through Emissions Reduction Alberta that fund around $50 million per year in projects. These include initiatives such as bitumen upgrading and advanced materials, where bitumen can be transformed into products like carbon nanofibers, batteries, asphalt and other construction materials.

We have also run hydrogen funding rounds, supporting different pathways for hydrogen development, as well as investments in direct air capture technologies. For instance, Deep Sky is operating a hub in central Alberta with around 10 demonstration projects that pull CO₂ directly from the atmosphere. In addition, we have supported technologies like E3 Lithium, which is working on extracting lithium from brines, as well as geothermal projects, including Eavor’s project to repurpose old well sites into underground systems capable of providing heat and power.

What we are seeing is a real advantage in leveraging the strength, scale and profitability of our traditional energy sector to reinvest into new technologies. In many cases, companies are now participating across both spaces. They are supporting existing energy production while also investing in new technologies. Different jurisdictions are moving at different speeds when it comes to emissions reduction. But I think, especially after the disruption of global supply chains following the Russian invasion of Ukraine and instability in regions like the Strait of Hormuz, there is now a broader recognition that the energy transition has to happen at a pace that does not compromise people’s livelihoods. Energy affordability and reliability are fundamental to maintaining prosperity and living standards. So I think the pragmatic approach is the right one. That doesn’t mean we stop investing in emissions reduction technologies. It means we have to do both — maintain price stability for consumers today while also investing in the fuels and technologies of the future.

I think in the past decade, some jurisdictions may have gone too far in one direction, which has contributed to some of Alberta’s dissatisfaction. Now, as more of the world recognizes the need for a balanced approach, I think Alberta is very well positioned.

With so many strong sectors developing, which areas are currently drawing the most international investor interest?

There’s a lot of enthusiasm right now around getting our energy products to market. That includes oil pipelines, natural gas pipelines, LNG exports and natural gas liquids. Those are all areas where we’re seeing strong investment interest. We’re also seeing significant interest in AI data centers. There are roughly 20,000 megawatts of potential demand in the system right now from applications that have been submitted to our independent system operator. That gives you a sense of the scale of interest in that space.

In agri-food, we’ve already attracted over $2.8 billion in investment in processing. That’s another area we expect to continue growing, particularly as we add value to our agricultural production. We’re also working to attract more film and television production through our tax credit program and we’ve had several major productions choose Alberta in recent years.

Forestry is another sector we would like to see expand further, although it has been more challenging in recent years due to tariffs and trade issues with the United States. That may take some time to fully resolve.

Overall, the strongest areas of investor interest right now are really energy and food, with growing attention in technology as well.

Where do you see the strongest opportunities for deeper cooperation with  the United States West Coast in the years ahead?

I think it is, for sure, in technology and innovation. California is a global leader with Silicon Valley and other hubs, not only in fostering startups, but also in helping them scale into major global players. We watch that with great interest. We have a West Coast office in Seattle, which gives us access to that market through another entry point, but to me, that is where the greatest potential for collaboration lies, particularly if there is interest in partnering with the Alberta Machine Intelligence Institute and the researchers we’ve attracted here. We’ve been able to attract a number of professors from the United States because we have high-quality data that can be used for analysis, whether in energy or in new applications in health care. That is where I see real opportunity.

In addition, with pipelines now reaching our coast, whether for natural gas liquids like propane, LNG or oil, we have the ability to move energy by ship into California. That makes us a secure supplier for everything from gasoline and diesel to aviation fuel, natural gas for home heating and propane for other uses. That is another way we can contribute to energy security for the California market.

There is also Hollywood and the broader media sector. We host the Banff World Media Festival, now in its 47th year, where major studios participate in a major international pitch forum. This year includes Netflix, Amazon, Disney, MGM Studios, Fox, BBC Studios, Sony, Game Show Network, HBO, Paramount, Warner Brothers and Lionsgate. That has helped us attract major productions, including The Last of Us, My Life with the Walter Boys, Heartland, Reminders of Him and even Ghostbusters. I think film and television is another strong area of collaboration with California. We have incredible landscapes, whether it is our cowboy culture, best seen through the Calgary Stampede, or our mountain backdrops, which make Alberta a natural filming location for global productions.

Alberta’s film and television industry has expanded significantly in recent years, becoming a multi-billion-dollar sector that attracts major international productions.What has been the main driver behind its growing appeal to global studios and how can Alberta further strengthen its creative relationship with Los Angeles and the wider US entertainment industry?

Alberta’s growing appeal to international studios comes down to stability, results and talent. Producers choose Alberta because they know exactly what they’re getting: a competitive, low-tax environment and a skilled workforce that delivers and keeps production running smoothly. Pair that with landscapes you can’t find anywhere else and it’s easy to see why more than 380 productions have filmed here since 2020. We’re building on that momentum by expanding the types of productions eligible for the tax credit and working directly with industry leaders at events like the Banff World Media Festival to strengthen ties with major studios and keep productions coming back.

Recent debates about Alberta’s role within the Canadian federation have attracted significant attention. What do these discussions reveal about the concerns and priorities of Albertans today?

I think we went through a period of about 10 years where Alberta, particularly our energy industry, was being held back by a wave of anti-development federal policies. Many Albertans felt that it had become difficult to attract investment because of policies introduced at the federal level. However, with the change in leadership in Ottawa, I would say that Alberta and the federal government are more aligned than they have been in a long time. That alignment is one of the reasons we are now able to present a much stronger message to the world — that Alberta and Canada more broadly, are attractive places to invest.

There is still some lingering dissatisfaction over how many Albertans feel the province was treated during the past decade. However, my view is that conditions are improving. As we continue to attract investment and demonstrate that the policy environment has changed, I believe much of that dissatisfaction will gradually fade.

Alongside its iconic mountains and vibrant cities, Alberta is seeing growing demand for Indigenous tourism experiences that highlight the province’s heritage and culture. What part does tourism play in Alberta’s long-term economic vision and how are Indigenous tourism offerings  helping Alberta carve out a unique position in the global travel market?

As a key pillar of Alberta’s tourism strategy, Indigenous tourism is projected to generate $293.5 million in revenue and support more than 4,000 jobs in 2026, underscoring its importance to Alberta’s economy and visitor experience. To build on this momentum, through Travel Alberta’s renewed agreement with Indigenous Tourism Alberta, we have committed $8.2 million over four years (2026–2030) to strengthen and expand Indigenous tourism opportunities. This investment is strengthening Alberta’s position as a premier destination while supporting Indigenous communities in sharing their rich cultures, histories and traditions with visitors from around the world.

Looking forward, what role do you see Alberta playing in North America’s future?

Over the past three and a half years, we have built strong support for a balanced energy approach and the importance of reliability and affordability is now widely understood. We are proud to be a dependable global energy supplier and equally committed to environmental stewardship — something that is reflected in Alberta’s landscapes and way of life. We are also at the forefront of environmental innovation and these two strengths reinforce each other as a defining pillar of our strategy. This is what continues to elevate Alberta’s global position.

We are seeing people fly in from all over the world, with strong and growing direct air connections through Calgary and Edmonton. WestJet has even introduced stopover options, allowing travelers from Europe to break their journey in Calgary for up to seven days — the first program of its kind in Canada. It highlights Alberta’s position as a connector between Europe and the United States and as a province with much more to offer beyond business.

If you had one message for California’s business community, investors and decision-makers, what would it be?

Alberta is open for business and we remain committed to strengthening our ties with California and the rest of the United States through increased trade, investment attraction and collaboration in emerging sectors. Alberta is the economic engine of Canada thanks to our low taxes, business-friendly environment and growing economy.

At 23%, Alberta’s combined federal-provincial corporate income tax rate is amongst the lowest in North America and lower than California’s 29.84. Alberta has also cut red tape by 33%, removing more than 200,000 regulatory requirements and saving Albertans and businesses over $3 billion. Canada’s largest banks forecast Alberta’s economy to continue to lead the rest of Canada in economic growth through 2026, driven by the government’s support of robust energy production, strong private-sector job creation and major investments.