Meta's first Canadian data center, a $9 billion 1 gigawatt facility in Alberta, adds capacity but doesn't answer the central question of when AI spending will produce revenue beyond ads.
Meta is building its first data center in Canada, a 1 gigawatt facility in Alberta that will cost roughly $9 billion and take two to three years to complete. The project, announced in a blog post Wednesday, is the company's 33rd data center and the latest piece of its aggressive AI infrastructure expansion.
The site sits in Sturgeon County, an area long zoned for industrial use with capacity for additional energy infrastructure. Alberta offers cheap power and a friendly regulatory environment, two factors that have drawn other hyperscalers to the province. "This specific location met the factors we typically look for: good access to infrastructure, a robust electric grid and access to energy, a strong pool of talent, and a great set of community partners," a Meta spokesperson said.
The announcement overlaps with growing investor skepticism about Meta's capital spending plans. The company has forecast up to $145 billion in capital expenditures this year, a figure that has weighed on the stock. Meta shares are down about 9% year to date, while the Nasdaq has risen 11%.
Alongside the physical buildout, Meta is planning a new cloud computing business that could involve selling excess capacity or offering access to AI models hosted within its infrastructure. The company has not shown a clear path to revenue beyond online advertising, lagging behind AI model leaders OpenAI, Anthropic, and Google. Meta competes with Alphabet, Microsoft, and Amazon, all of which have established cloud infrastructure businesses generating tens of billions in annual revenue.
Local communities have raised environmental issues. The Canadian Broadcasting Corporation reported in June on emissions, water consumption, and noise from big data centers. Meta said it worked with energy firms including Greenlight Limited Partnership, Altalink, Capitol Power, and the Alberta Electric System Operator to plan for energy needs years in advance. The company said the project will support over 3,000 construction workers at its peak.
Construction is expected to take two to three years. Meta's Alpha Score stands at 64 out of 100, reflecting the market's cautious stance on the stock.
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