Meta plans $9bn Alberta data centre to expand AI infrastructure

Meta said Wednesday it will build a 1 gigawatt data centre in Alberta, its first in Canada, with expected spending of about $9 billion over a two-to-three-year construction period. The project expands the company’s artificial intelligence infrastructure push as investors scrutinise its capital spending plans and the economics of AI capacity.

The facility, planned for Sturgeon County, will be Meta’s 33rd data centre globally, according to the company. Meta said the site met its requirements for infrastructure access, grid strength, energy availability, local talent and community partnerships.

Sturgeon County has long been zoned for industrial use and sits in an area that can support additional energy infrastructure, CNBC reported. Alberta has attracted interest from developers because of available power and a regulatory setting viewed as supportive of large industrial projects, according to the report.

“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,” a Meta spokesperson said in a statement.

AI buildout meets cloud ambitions

Large AI data centres combine computing hardware, networking systems, power supply and cooling infrastructure to train and run models at scale. A 1 gigawatt facility refers to the amount of electrical capacity associated with the site, a central constraint for companies trying to deploy more processors for AI workloads.

Meta’s expansion comes as the company also prepares a cloud computing business, CNBC reported. That effort could include selling unused computing capacity to outside customers or providing access to AI models hosted on Meta’s own infrastructure.

The move would put Meta in closer competition with Alphabet, Microsoft and Amazon, whose cloud infrastructure businesses already serve external customers. Meta has been building AI facilities while competing with those companies, as well as model developers including OpenAI, Anthropic and Google, CNBC reported.

Investors have questioned Meta’s forecast for as much as $145 billion in capital expenditures this year, according to CNBC. The company remains heavily dependent on online advertising revenue and has not yet shown a clear revenue path from AI outside that core business, CNBC reported.

Meta shares were down about 9% for the year, while the Nasdaq had gained 11%, according to CNBC. The stock move reflects market debate over whether heavy AI spending will generate returns commensurate with the cost of data centre capacity, chips and energy procurement.

Power planning and local effects

Meta said it worked with Canadian energy groups including Greenlight Limited Partnership, Altalink, Capital Power and the Alberta Electric System Operator to plan for the site’s future power requirements years before the facility comes online.

Large data centres can draw scrutiny from nearby communities because of their electricity use, cooling needs and physical footprint. A June report by the Canadian Broadcasting Corporation cited concerns about emissions, water consumption and noise linked to major data centre developments.

Meta said the Alberta project will support more than 3,000 construction workers at its peak. The company also said it will invest in local infrastructure and provide funding to local nonprofits, without specifying amounts beyond the overall project cost.

This story draws on original reporting from CNBC.