Meta to build Alberta data center as AI infrastructure spending expands in Canada

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Meta Alberta data center project

Highlights

Meta announced a 1 gigawatt data center in Sturgeon County, Alberta, its 33rd facility, to expand AI infrastructure capacity.
Investors remain skeptical as Meta anticipates up to $145 billion in 2024 capital expenditures, with shares down 9% YTD versus Nasdaq up 11%.
Meta's Alberta project will create over 3,000 construction jobs and includes local infrastructure investment amid concerns about data center environmental impacts.

Alberta project adds to Meta’s AI capacity plan

According to CNBC, in a blog post on Wednesday, Meta said it is building a 1 gigawatt data center in Alberta, its 33rd facility overall, as it accelerates efforts to meet demand for AI infrastructure and services.

The company selected Sturgeon County for the site, citing access to infrastructure, a strong electric grid, available energy, local talent and support from community partners. Meta said the area has long been zoned for industrial use and has capacity for additional energy infrastructure.

A Meta spokesperson said the location matched the factors the company typically evaluates for major projects. Meta also said it has worked with Canadian energy firms including Greenlight Limited Partnership, Altalink, Capitol Power and the Alberta Electric System Operator to plan for power needs years before the facility comes online.

Investment scrutiny and local effects

Meta’s Canadian expansion comes as investors remain skeptical about the company’s forecast for up to $145 billion in capital expenditures this year, especially as it trails OpenAI, Anthropic and Google in AI models and has yet to show a clear revenue path beyond online advertising.

The company is also planning a cloud computing business that could include selling excess computing capacity to third parties or offering access to AI models hosted on its own infrastructure. Meta’s stock is down about 9% this year, while the Nasdaq is up 11%.

Meta said the Alberta project will support more than 3,000 construction workers at peak activity and will include investment in local infrastructure and funding for local nonprofits. The buildout also faces community concerns, after a June report by the Canadian Broadcasting Corporation highlighted environmental issues tied to large data centers, including emissions, water use and noise.

OpenAI’s $520 million credit line from Bank of America underscored how aggressively capital is flowing into the AI sector ahead of major expansion and IPO plans. Our earlier report noted that the financing deepens ties between leading AI developers and Wall Street as banks compete for lending and advisory roles tied to big-ticket AI growth.

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