Meta Platforms Inc. has announced plans to invest $13 billion in a new artificial intelligence data centre in Sturgeon County, Alberta, marking a significant development in the province’s expanding technology and energy sectors. The facility, which will cover approximately 270,000 square metres and have a capacity of one gigawatt, is expected to consume about three-quarters of the electricity used by the city of Edmonton.
The data centre will be powered primarily by the Greenlight natural gas-fired power plant, a $4.6 billion project currently under construction by a consortium led by Calgary-based Pembina Pipeline Corp. Edmonton-based Capital Power Corp. has also entered into a long-term agreement to supply Meta with 250 megawatts of power. This arrangement fits within Alberta's "Bring Your Own Power" (BYOP) framework, under which data centres secure power directly from producers rather than relying on the main electrical grid.
Officials and analysts point to the project as evidence that global hyperscale technology companies are confident in Alberta’s energy infrastructure and are prepared to make substantial investments. Robert Hope, an analyst at Bank of Nova Scotia, stated that Meta’s commitment reflects the potential for artificial intelligence-driven demand to generate new opportunities across the province’s power and natural gas sectors.
The Alberta government expects the data centre boom to have positive implications for local residents, including a projected decrease of up to 6 percent in electrical bill transmission costs when the facility becomes operational. This expected reduction is attributed to the BYOP model, which enhances efficiency by better aligning electricity load with generation capacity. Utilities could also benefit from more stable cash flows due to the long-term contracts with financially robust companies like Meta and Amazon.
Environmental considerations have been addressed in the project design, with the data centre utilizing a closed-loop cooling system that significantly reduces water consumption compared to typical facilities in the region. Alberta officials highlight this as consistent with the province’s goals of maintaining reliable and affordable electricity, protecting water resources, and ensuring major projects cover their associated costs.
However, the development has drawn some criticism from environmental groups, including the Calgary-based Pembina Institute, which has voiced concerns over Alberta’s ongoing support for natural gas and slower expansion of renewable energy sources. These critics argue that the province’s regulatory environment favors fossil fuel investments, which may hinder broader efforts to transition to cleaner energy.
Nonetheless, market analysts note that companies involved in the AI infrastructure buildout—such as TransAlta Corp., Canadian Utilities Ltd., TC Energy Corp., Pembina, and Capital Power—are well positioned to benefit from the sector’s growth, even amid ongoing debates about the balance between fossil fuel and renewable energy development in Alberta.