Meta plans C$13 billion data center in Alberta

Meta Platforms is planning a C$13 billion data center in Alberta, marking its first data center in Canada. The facility will initially offer 1 gigawatt of capacity to support expanding artificial intelligence operations, with the potential to scale to 1.8 gigawatts. Capital Power will initially supply 250 megawatts of electricity. Meta also signed a long-term agreement with Pembina Pipeline's planned natural gas-fired Greenlight Electricity Centre, which is scheduled to enter service in late 2030.

According to Reuters, more than 100 data-center projects have been proposed in Alberta, where developers are attracted by abundant natural gas, available land and a cold climate that lowers cooling costs. Capital Power CEO Avik Dey told Reuters that several other developers are discussing power supply and that multiple hyperscalers have been evaluating the province for roughly 18 months.

The project follows rapid financial expansion alongside heavy capital outlays. In the second quarter, Meta increased revenue by 28% year over year to $60.8 billion, driven by a 27% increase in advertising revenue. Meta CEO Mark Zuckerberg noted that AI is accelerating the core business while supporting new products and enterprise opportunities.

Infrastructure spending is significantly affecting cash flow. Meta allocated $31.08 billion to capital expenditures, including principal payments on finance leases, during the second quarter alone, and now forecasts $130 billion to $145 billion in capex for 2026. Operating cash flow reached $31.86 billion in the quarter, but free cash flow dropped to $784 million from $8.55 billion a year earlier.

Local power dynamics also introduce regional friction. A Pembina Institute report cited by Reuters warned that data centers tapping Alberta's electrical grid before dedicated generation is ready could strain supply and raise consumer costs. In addition, a July poll by Angus Reid found that 68% of Canadians oppose a large data center near their home.