Meta to construct its initial large-scale data center in Alberta

Meta will erect its inaugural major data center on Canadian soil, a 1 gigawatt AI-optimized site located in Sturgeon County, Alberta.

Meta selects Alberta for its energy and regulatory advantages. The social media giant outlined plans for the project in a blog post released Wednesday. Construction is expected to run approximately $9 billion and span two to three years.

The western Canadian province supplies abundant power along with a supportive regulatory climate. Local officials have kept the chosen parcel zoned for industrial purposes and capable of handling expanded energy facilities.

The data center is targeted to become Meta's 33rd overall as AI buildout accelerates. This marks the latest step in the company's swift infrastructure growth to satisfy requirements for artificial intelligence systems and related offerings. Meta is racing to stand up AI facilities while competing with hyperscalers Alphabet, Microsoft and Amazon.

Meta eyes a new cloud computing business alongside AI facilities. Executives are preparing to launch a cloud computing service that may include marketing surplus capacity to outside customers or granting entry to AI models running on the firm's own hardware. Wall Street has voiced doubts about the projected capital spending reaching as high as $145 billion this year.

The company trails AI model leaders OpenAI, Anthropic and Google. It still lacks a proven route to earnings beyond digital advertising. Meta's stock has declined roughly 9% year to date while the Nasdaq has climbed 11%.

Project includes local workforce and infrastructure commitments. At its height the endeavor is slated to employ more than 3,000 construction personnel. Plans also call for upgrades to area infrastructure plus contributions to regional nonprofit groups.

The firm collaborated with energy partners such as Greenlight Limited Partnership, Altalink, Capitol Power, and the Alberta Electric System Operator "to plan for and meet our energy needs years in advance of this data center coming online." A June report from the Canadian Broadcasting Corporation drew attention to resident worries regarding emissions, water usage and noise generated by expansive data centers.