Meta’s $13B Alberta Build Sparks Hyperscale Power Race

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Meta’s Alberta Commitment Lifts Province’s Hyperscaler Profile

Meta’s decision to construct a C$13 billion ($9 billion) data center in Alberta has strengthened the province’s standing as a preferred location for hyperscale infrastructure, according to Capital Power’s chief executive officer.

In an interview on Friday, Avik Dey, CEO of Edmonton-based Capital Power, said Meta’s move is viewed by potential investors as an endorsement of the Alberta government’s artificial intelligence strategy and broader approach to digital infrastructure.

Dey noted that Capital Power is currently engaged in discussions with several parties interested in potential data center projects, with the company positioning itself as a key electricity supplier. He declined to identify the potential counterparties but said he does not expect Meta to be the only major U.S. hyperscaler to establish a large data center footprint in the province.

Hyperscalers are firms that operate very large cloud computing and data center platforms required to support AI and other data-intensive workloads.

Alberta’s Data Center Pipeline and Competitive Advantages

While Canada currently hosts only a small number of hyperscale facilities, companies have proposed more than 100 potential data center projects in Alberta. The province offers several attributes that proponents find attractive, including abundant and relatively low-cost natural gas for power generation, ample available land, and a cold climate that can help reduce the cost of running supercomputers.

Dey said, “Meta is the first to cross the line, but I think multiple hyperscalers have been evaluating Alberta for, I would say, the last 18 months,” adding, “I do feel strongly that we’ve got the potential to be a multi-gigawatt market.”

Capital Power’s Positioning: Genesee and Gas-Fired Assets

Capital Power is actively promoting its Genesee Generating Station, located southwest of Edmonton, as a potential anchor site for large data centers. The company also sees its portfolio of natural gas-fired generation assets as well-suited to supply power to data centers in both Canada and the United States.

BCE’s Saskatchewan Expansion and Regional Competition

Momentum for large-scale digital infrastructure is not limited to Alberta. Last week, Canadian telecom company BCE announced it will quadruple the planned size and scope of its data center project in Saskatchewan, expanding it into a 1.2-gigawatt hub. Saskatchewan’s government has indicated that it is prioritizing Canadian ownership when it reviews new data center proposals.

Alberta’s Approach to Hyperscalers and Power Sourcing

Alberta has been actively courting Silicon Valley-based hyperscalers and is offering new proponents the option to build their own power generation assets to maximize their electricity capacity.

For its first Canadian data center, Meta has teamed up with Pembina Pipeline to construct a natural gas-fired power plant dedicated to the facility. Until that plant begins operating in 2030, Capital Power will supply 250 megawatts of electricity to the site.

An investment summit hosted by Prime Minister Mark Carney last week highlighted several data center opportunities to investors, and a senior executive from OpenAI attended the event.

Power System Concerns and Community Sentiment

In the United States, data center developments have increasingly faced resistance from local communities and policymakers over issues related to power demand, water usage, and environmental impacts. Dey said Alberta has adopted a more measured strategy by pushing data center developers to put capital into new generation capacity instead of relying heavily on the existing grid.

However, a report published last month by clean energy think tank the Pembina Institute warned that allowing data centers to tap the provincial grid before their own dedicated generation is operational could tighten electricity supplies and potentially increase power costs for consumers.

Separately, a July Angus Reid poll found that 68% of Canadians would oppose the construction of a large data center near their homes.

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