Meta's AI Empire Expands: Billions Poured Into Canada's Largest Data Center Outside US

Meta, the parent company of Facebook and Instagram, has announced a significant investment exceeding US$9.1 billion to construct its inaugural artificial intelligence (AI) data center in Canada, marking it as the company's largest such facility outside the United States. This substantial project will be located in Sturgeon County, Alberta, and is slated to be powered by a dedicated natural gas-fired plant. This power generation facility is under development by a consortium comprising Calgary-based Pembina Pipeline Ltd., Morgan Stanley Infrastructure Partners, and Kineticor Asset Management.

The announcement was met with enthusiasm by Alberta's Technology and Innovation Minister, Nate Glubish, who highlighted the project's importance for the province. Glubish noted that Alberta has actively created a favorable regulatory framework specifically designed to attract investments in data centers. The province has been actively courting hyperscale data centers, driven by the escalating global demand for advanced artificial intelligence infrastructure.

However, the rapid expansion of AI technology and its supporting infrastructure has raised concerns regarding the substantial amounts of electricity and water required by such facilities. These concerns also extend to the potential strain on existing power grids and nearby communities. Recognizing these challenges, particularly that Alberta's current electricity grid cannot adequately support multiple large-scale AI data centers, the province is prioritizing projects that commit to developing or securing their own power generation capabilities, a strategy that Meta plans to implement.

In addressing environmental considerations, Meta has stated that its new data center will incorporate a closed-loop cooling system. This innovative system is designed to operate without drawing water from surrounding natural sources, minimizing its ecological footprint. Furthermore, Meta plans a US$42 million investment in local infrastructure improvements, which will include upgrades to roads and water systems in the area surrounding the facility.

The power plant, officially named the Greenlight Electricity Center, was publicly announced last week by Pembina Pipeline, Morgan Stanley Infrastructure Partners, and Kineticor Asset Management, with Meta identified as its key customer. This 932-megawatt power plant is projected to commence operations during the second half of 2030, providing the necessary energy for Meta's Canadian AI data center.