* Alberta pitched cheap gas and cooler temperatures as key
advantages
* 1 gigawatt facility is Meta's 33rd globally
* Data center will be built in Sturgeon County in central
Alberta
By Amanda Stephenson
CALGARY, July 8 (Reuters) - Tech giant Meta announced
Wednesday it will build a massive data center in central
Alberta, the company's first in Canada, as it rapidly builds out
computing capacity to support the global AI boom.
The 1-gigawatt data center will be located in Sturgeon
County and represents a total investment of C$13 billion, or
$9.17 billion, Meta said.
Meta has doubled down on AI, pledging hundreds of billions of
dollars to build large AI data centers in the U.S. The Alberta
announcement represents the company's 33rd data center
globally.
Executives made the announcement in Calgary alongside Premier
Danielle Smith and other Alberta government officials, who have
spent several years courting Silicon Valley tech giants with the
aim of spurring a large-scale investment in the oil-and-gas
province.
Meta, like other tech giants, is facing rapidly expanding
power needs due to the growth of AI, and Alberta is rich in
natural gas which sells at a significant discount to the U.S.
benchmark.
The province's cold climate also makes cooling the massive
super-computers and related data center infrastructure more
cost-efficient.
The 20 existing small- to mid-scale data centers in Alberta
already pull from the province's energy grid, which is 60%
powered by natural gas. The provincial government is giving new
proponents the option to build their own power sources to avoid
limits on power capacity.
Meta said Wednesday it will fully fund new generation and
grid infrastructure for its Alberta data center, which will
consume about as much electricity as 800,000 homes.
The company has partnered with Alberta-based Pembina Pipeline ( PBA ),
which announced last week it will go ahead with its Greenlight
Electricity Centre, a new natural gas-fired power-generation
facility in Sturgeon County which will be in service in late
2030 and with which Meta has a long-term tolling agreement.
The project will require approximately 150 million cubic
feet per day of natural gas, according to Pembina, helping to
create demand for Western Canadian natural gas producers.
Canada's government laid out an AI strategy last month that
suggested new data center growth would benefit from the
country's clean electricity grid, which is largely powered by
renewables and low-emission power sources.
But the vast majority of data centers currently in the
planning stages in Canada are located in Alberta, where a
reliance on natural gas means the emissions intensity of the
province's electricity grid is almost five times the national
average.