Meta to Build $13B Data Centre in Alberta as AI Race Raises Energy Questions

By Tahani Elghazaly
Published July 9, 2026

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Meta has announced plans to build its first data centre in Canada, with an investment of more than C$13 billion in Alberta, in a move that places Canada more firmly in the global race for artificial intelligence infrastructure while also raising questions about electricity demand, water use, and environmental impact.

The project will be located in Sturgeon County, north of Edmonton, and is being designed to support artificial intelligence workloads. According to Meta, the Alberta site will be its first data centre in Canada and the 33rd in its global network.

The Government of Alberta says the project is expected to create more than 3,000 jobs at peak construction and support around 300 permanent operational jobs once completed. Meta is also expected to invest about C$60 million in local improvements, including roads and water infrastructure.

Economically, Alberta is presenting the project as one of the largest private investments in Canadian history and a sign that the province wants to move beyond its traditional energy identity into the fast-growing world of data centres and AI infrastructure. But this shift comes with major challenges, because large data centres require huge amounts of electricity to run servers and cooling systems around the clock.

According to Reuters, the planned facility could have an initial capacity of around 1 gigawatt, with the potential to expand to 1.8 gigawatts. Meta has said it will help fund the new power generation and infrastructure needed for the project so that local consumers are not left paying the cost.

Energy is the point that has made the announcement more controversial. The project will be linked in part to natural gas-powered electricity in a province where the grid remains closely tied to fossil fuels. The Associated Press reported that the data centre will be supplied by a natural gas power project being developed by a group that includes Pembina Pipeline, while Alberta says its approach is to require major data centre projects to bring their own power rather than place pressure on the public grid.

Meta, for its part, says the electricity used by the centre will be matched with clean and renewable energy investments. The company also says the cooling system will be a closed-loop, water-efficient design, with no water used for operational cooling. Water use at the site, according to Meta, will be limited to domestic needs, fire safety, and equipment maintenance.

Still, critics argue that the debate is not only about water. It is also about who gets access to public resources at a time when major technology companies are racing to build bigger and faster AI infrastructure. Environmental groups have called for stronger rules and clearer safeguards before allowing massive data centre projects to expand further.

Between the promise of jobs and investment on one side, and concerns over emissions, electricity demand, and resource use on the other, Meta’s Alberta project is more than a technology announcement. It is an early test of how Canada will manage the AI race: can the country attract major investment without leaving local communities to carry the environmental and energy costs?