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TechMeta to build first major Canadian data center in Alberta, costing ~$9B
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Meta announced it will build its first large-scale Canadian data center in Sturgeon County, Alberta, a 1 gigawatt facility costing approximately $9 billion over two to three years. The company cited Alberta's abundant energy supply and favorable regulatory environment as key factors. This is Meta's 33rd data center globally and part of its aggressive AI infrastructure buildout. Simultaneously, Meta is planning a cloud computing business that could sell excess capacity to third parties. The project faces investor skepticism due to Meta's high capital expenditures and lagging position in AI model leadership. Local environmental concerns about emissions, water use, and noise have also been raised. Meta stated it worked with multiple energy firms to meet long-term power needs and that the project will support over 3,000 construction jobs at peak.
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Mark Zuckerberg, CEO of Meta Platforms. David Paul Morris | Bloomberg | Getty Images
Meta's artificial intelligence expansion is moving north of the border.
The company announced in a blog post on Wednesday that it is building its first data center in Canada — a 1 gigawatt facility in the province of Alberta. The project is expected to cost Meta approximately $9 billion and take two to three years to construct.
This will be Meta's 33rd data center overall and represents the latest step in the company's rapid buildout to meet growing demand for AI infrastructure and services.
Why Alberta?
Alberta, located on the western side of Canada, offers an attractive location for development due to:
- Abundant available energy
- A favorable regulatory environment
The specific site, located in Sturgeon County, has long been zoned for industrial use and sits in an area with capacity for additional energy infrastructure.
"This specific location met the factors we typically look for: good access to infrastructure, a robust electric grid and access to energy, a strong pool of talent, and a great set of community partners that helped us move this project forward." — Meta spokesperson
Cloud Computing Ambitions
While Meta continues its aggressive AI buildout, the company is simultaneously planning a new cloud computing business. This could involve:
- Selling excess capacity to third parties
- Offering access to AI models hosted within Meta's infrastructure
Investors have been skeptical of Meta's forecast for up to $145 billion in capital expenditures this year. The company has fallen behind AI model leaders OpenAI, Anthropic, and Google, and has not yet demonstrated a clear path to revenue outside of online advertising.
Meta's stock is down approximately 9% year-to-date, while the Nasdaq is up 11%.
Competitive Landscape
Meta is racing to establish AI facilities as it competes with hyperscalers Alphabet, Microsoft, and Amazon — all of which operate flourishing cloud infrastructure businesses.
Community and Environmental Concerns
A report in June from the Canadian Broadcasting Corporation highlighted environmental issues associated with large data centers, including:
- Emissions
- Water consumption
- Noise
Meta stated it has worked with various energy firms in Canada — including Greenlight Limited Partnership, Altalink, Capitol Power, and the Alberta Electric System Operator — "to plan for and meet our energy needs years in advance of this data center coming online."
The company added that the project will support over 3,000 construction workers at its peak and will involve investments in local infrastructure and funding for local nonprofits.
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Meta to Build First Major Canadian AI Data Center in Alberta