Meta to Spend $9B on First Canadian Data Center in Alberta

Meta is investing approximately $9 billion to build its first data center in Canada, a 1-gigawatt facility in Alberta that will take two to three years to construct, according to details first reported by CNBC.

The facility represents Meta's 33rd data center globally and signals the company's continued push to expand AI infrastructure capacity. The Alberta location was selected for its abundant energy availability, favorable regulatory environment, and existing industrial zoning in Sturgeon County, which already has capacity for additional energy infrastructure.

Why it matters

Meta's massive Canadian investment comes as the company faces investor skepticism over its AI spending. With capital expenditures forecast to reach $145 billion this year, Meta trails AI model leaders like OpenAI, Anthropic, and Google, while its revenue remains heavily concentrated in online advertising. The company's stock has fallen roughly 9% this year while the Nasdaq has gained 11%. The new facility also supports Meta's reported plans to launch a cloud computing business that could monetize excess capacity or provide hosted access to its AI models.

Energy and community considerations

Meta worked with multiple Canadian energy partners—including Greenlight Limited Partnership, Altalink, Capitol Power, and the Alberta Electric System Operator—to plan for the facility's energy requirements years in advance. A Meta spokesperson emphasized the site's "good access to infrastructure, a robust electric grid and access to energy, a strong pool of talent, and a great set of community partners."

The project has drawn attention to environmental concerns common with large-scale data centers. A June report from the Canadian Broadcasting Corporation highlighted issues including emissions, water consumption, and noise associated with such facilities.

Meta said the construction phase will support over 3,000 workers at peak activity and will include investments in local infrastructure and funding for area nonprofits.

Racing the hyperscalers

The Alberta facility is part of Meta's effort to compete with established cloud infrastructure providers including Alphabet, Microsoft, and Amazon, all of which operate thriving cloud businesses. Meta's potential entry into cloud services would represent a significant strategic shift for a company that has historically focused on social platforms and advertising.

The company is simultaneously building out AI capabilities while exploring how to generate revenue from the infrastructure investments that have concerned Wall Street.

Details of Meta's Canadian expansion were first reported by CNBC.