With artificial intelligence (AI) emerging as one of the most consequential technologies for both the energy sector and global economy, Canada and its G7 partners are investing to support future competitiveness and productivity while considering energy security, reliability and affordability. G7 partners recognize that AI can be harnessed to promote energy innovation and help strengthen the resilience and reliability of energy systems. However, its adoption places growing pressure on energy grids and could negatively affect energy security.

High-Level Dialogue on Energy and AI

Following up on the G7 Leaders’ Statement on AI for Prosperity released during the Kananaskis Summit, Canada convened a High-Level Dialogue on Energy and AI with industry leaders to discuss areas of collaboration. Conversations explored options to adopt AI and digital technologies in energy systems; opportunities to encourage innovation, promote efficiency and productivity, and reduce externalities; and how to responsibly grow the use of AI in energy sectors, including the needed workforce and skills development.

G7 Energy and AI Work Plan

G7 Energy and AI Work Plan At the High-Level Dialogue, Ministers endorsed a G7 Energy and AI Work Plan that was developed in collaboration with international and industry partners, including the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA) and the Canadian Chamber of Commerce in its capacity as chair of the Business 7 (B7).

Recognizing that cooperation on AI implementation is key to the success of digitalization across our energy, utility and resource sectors, Ministers agreed that AI data centres should be reliably and cost-effectively powered through the adoption of technical and market-based solutions. This includes improving resource management by improving energy efficiency and encouraging adjusted usage or consumption during peak demand times, in alignment with domestic priorities and international commitments. They acknowledged that meeting the demands from AI and data centres requires additional energy capacity and that energy storage and resource efficiency will play key roles in reliability, access and affordability.

Ministers pledged to:

• Collaborate with industry, domestic stakeholders and international partners to ensure AI and data centres have access to secure, reliable and affordable energy. This includes leveraging diverse technologies and energy sources, improving grid stability and identifying cost-effective solutions to meet growing power demands. 
• Work with international partners to share best practices and strategies for building resilient energy ecosystems that support current and future data centre needs.
• Foster innovation and trust in the use of AI in energy systems by supporting domestic innovators and facilitating knowledge exchange among G7 research institutions. This includes transparent sharing of non-commercial data and real-world applications while prioritizing workforce development, upskilling and AI literacy.
• Monitor and report on the energy and resource demands of AI technologies, address infrastructure risks, streamline regulations and enhance integration between energy systems and grid management.

AI and Energy Innovation Funding Call

AI and Energy Innovation Funding Call As another step in advancing the work directed by the G7 Leaders’ Statement on AI for Prosperity, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced a $10-million Artificial Intelligence for Canadian Energy Innovation Call for Proposals. This all will fund high-impact RD&D projects that grow national expertise and stimulate novel, Canadian-made AI solutions that accelerate the pace of domestic energy innovation and lower the associated costs. 

The Call is accepting Expressions of Interest from October 29 until December 4, 2025. 

Energy and AI Observatory and Roadmap

Energy and AI Observatory and Roadmap in June 2025, the IEA launched a new Energy and AI Observatory, a unique platform to closely monitor and analyze interconnections between AI and the energy sector. As part of the G7 Energy and Environment Ministers’ Meeting, the IEA announced a roadmap for the Observatory, through which it will be able to provide up-to-date data on energy demand and share information on best practices on AI applications for efficiency, innovation, resilience and competitiveness. Canada has supported this platform through investments announced at the G7 Leaders’ Summit and will continue to contribute by sharing our own information and best practices.