US Midterms and Canada’s Federal Budget
This week on the podcast, Peter and Jackie cover the US midterm election results and their potential implications for energy policy and Canada. They discuss why Trump’s veto power could limit legislative changes and debate the likelihood of the Iran war ending. They also consider the possibility of a windfall tax on oil and gas, which some Democrats have pushed for over the past year, as well as increased headwinds for data centres in states led by Democratic governors, and whether this could drive more investment in Canadian data centres. Democratic-led states could also provide more support for clean energy.
Next, they cover last week’s Canadian federal budget, “Masters of Our Destiny, Budget 2026.” For energy, it largely confirmed existing initiatives, including Major Projects Office priorities, the Productivity Mega Deduction tax incentive, and the goal of doubling Canada’s electricity generation. Investment Tax Credit changes included extensions to 2040 and domestic content adders, but overall, there were fewer changes than some expected. The budget also signaled more flexibility in the Clean Electricity Regulations, which restrict natural gas power generation without CCS, and outlined a goal to link Canada’s carbon markets, although details remain limited.
Content covered in this podcast:
- Canada announces landmark investment in Cohere to scale secure, Sovern AI (October 29, 2026)
- Globe and Mail, “Anthropic in talks to lease massive data centre campus outside Edmonton, sources say,” (October 30, 2026)
- Nova Scotia Premier Houston post on his support for AI (September 23, 2026)
- Masters of our Destiny, Canadian Federal Budget 2026
- Angus Reid on Canada, “Data Centre Doubts: Two-thirds want them limited; fears over resource drains drive resistance, (October 7, 2026)
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