US Stock Market: Meta unveils C$13 billion AI data centre in Canada; stock in focus

Meta Platforms will invest C$13 billion ($9.17 billion) to build its first data centre in Canada, marking another major step in the social media giant's aggressive artificial intelligence infrastructure expansion, according to a Reuters report.

The company said the new facility will be located in Sturgeon County, Alberta, with an initial capacity of 1 gigawatt and the ability to scale up to 1.8 gigawatts, making it one of Meta's largest AI-focused infrastructure projects globally.

The Alberta facility will become Meta's 33rd data centre worldwide as the company continues to ramp up investments in AI computing power. Meta has already committed hundreds of billions of dollars toward building large AI data centres, primarily in the United States, to support its expanding AI ambitions.


The announcement was made in Calgary alongside Alberta Premier Danielle Smith and other provincial officials, reflecting Alberta's efforts to attract large-scale investments from global technology companies.

According to Reuters, Alberta's technology minister, Nate Glubish, said several other gigawatt-scale data centre proposals are currently under development in the province, signalling growing interest from hyperscale technology firms.

Alberta's energy advantage

Meta's decision highlights Alberta's growing appeal as an AI infrastructure hub due to its abundant and relatively inexpensive natural gas supplies, cool climate and favourable business environment.

The province's colder temperatures help lower cooling costs for high-performance computing infrastructure, while Alberta's energy grid, currently powered about 60% by natural gas, offers access to large-scale electricity generation.

Meta said it will fully fund new power generation and grid infrastructure for the project. The facility is expected to consume electricity equivalent to the annual power needs of roughly 800,000 homes.

The company also said it plans to offset its electricity consumption by investing in renewable and clean energy projects. The data centre will use a closed-loop liquid cooling system designed to minimise water consumption.

Partnerships to secure power supply

Meta has partnered with Alberta-based Pembina Pipeline to support the project's long-term energy needs.

Last week, Pembina announced it would proceed with the Greenlight Electricity Centre, a natural gas-fired power generation facility in Sturgeon County that is expected to begin operations in late 2030. Meta has signed a long-term tolling agreement for electricity from the project.

Until then, Alberta-based Capital Power will supply 250 megawatts of electricity from its existing natural gas-fired generation fleet.

According to Pembina, the project will require around 150 million cubic feet of natural gas per day, creating additional demand for Western Canadian natural gas producers.

AI strategy and environmental concerns

Canada recently unveiled a national AI strategy aimed at encouraging data centre development by leveraging the country's largely low-emission electricity system.

However, most planned Canadian AI data centres are concentrated in Alberta, where electricity generation remains significantly more carbon-intensive than the national average because it relies on natural gas.

Environmental groups criticised the announcement, arguing that large AI data centres could place additional pressure on natural resources and increase greenhouse gas emissions.

Meta share price outlook

Meta shares remain one of the strongest performers among large-cap technology companies as investors continue to reward its aggressive AI investment strategy.

The latest Canadian data centre announcement reinforces Meta's long-term commitment to expanding AI infrastructure, a key driver of future revenue growth across advertising, generative AI products and enterprise AI services.

In the near term, however, such multibillion-dollar investments are likely to keep capital expenditure elevated, which could weigh on margins if spending rises faster than monetisation. Investors will closely monitor whether Meta's AI investments translate into stronger revenue growth and operating profits over the coming quarters.

Overall, analysts are expected to view the Alberta project as strategically positive for Meta's long-term AI leadership, even if the significant capital commitments limit short-term earnings upside. Continued progress in AI product monetisation and advertising growth is likely to remain the primary catalysts for the stock.