'I hate it': Meta's new $13B AI data centre draws ire of some Albertans

Meta has announced a massive new $13-billion AI data centre in Alberta, and while the province is pitching it as a “historic investment,” not everyone is cheering it on.

The tech giant says the new data centre will be built in an industrial area of Sturgeon County north of Edmonton, with the Alberta government calling it one of the largest private-sector investments in Canadian history.

If it sounds familiar, that’s because last October, we found out Meta was in talks with Pembina Pipeline to build the massive facility and the power generation needed to support it. The AI-optimized data center will help power the company’s AI innovations and core products, according to a news release.

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The project is expected to create more than 3,000 construction jobs and support 300 permanent roles once it’s up and running. The province also says it will generate about $250 million a year for Albertans through royalties, taxes, levies, and fees.

Meta is also reportedly putting about $60 million toward local infrastructure improvements, including roads and water infrastructure.

But while the province sees it as a win, many Albertans online seem less excited about the tech giant’s arrival, and more concerned about what it could mean for power bills, the electrical grid, water use, and pollution.

Electricity

The data centre is tied to Project Greenlight, a $4.6-billion, 970-megawatt natural gas-fired electricity generation facility announced last week by Pembina Pipeline Corporation, Morgan Stanley Infrastructure Partners, and Kineticor.

The province says that because of Meta’s contribution to transmission costs, Alberta ratepayers could see up to a six per cent decrease on the transmission portion of their electricity bills.

“Alberta created clear rules for large AI data centres before opening the door to investment,” the province wrote in a news release.

“Those rules help keep electricity reliable and affordable, protect Alberta’s water resources, ensure major projects pay their own way and deliver long-term economic and government revenue benefits for Albertans.”

Unlike other places, Alberta says large data centres here have to bring their own power, pay for the infrastructure needed to support their operations, and meet environmental and water requirements.

But the Alberta-based energy think tank, Pembina Institute (unrelated to Pembina Pipeline), says the “bring your own power” model may only be half the story, and could actually drive up costs.

“When a large new electricity user connects at the local level, it can create practical impacts. A nearby substation may need to be expanded,” Pembina explained.

“Local wires and equipment may need to be upgraded. Costs may rise and are often shared across customer groups. In most cases, the default response is to build more infrastructure.”

Pembina says large electricity users like data centres should bring “flexibility” along with their own power.

The institute says data centres could shift non-urgent computing tasks to different times of day, use more efficient equipment, manage cooling systems more carefully, and rely on on-site batteries or backup storage when demand is high.

In response to Wednesday’s announcement, David Pickup, director of the Pembina Institute’s Electricity program, said the new data centre will “require more energy than the City of Calgary.”

“Today’s announcement, that Alberta and Meta are moving ahead to build a 1800 MW data center in Sturgeon County, serves as yet another example of how Alberta’s current energy policy and market framework is being designed to structurally lock in demand for natural gas above all other options – even if it means higher and more volatile costs for consumers.”

Pickup criticized the decision to use natural gas over renewable energy to power the centre, adding the policy choices are “not technical or economic inevitabilities,” and they’re unlikely to be in the best interest of Albertan ratepayers.

“These announcements, combined with the federal government’s ambition to ‘triple LNG exports over the next decade’ will expose Albertans to much more intense market competition for the gas they rely on heavily to heat their homes and power their grid, meaning Albertans will see rising energy costs in the years to come.”

Water

To address water use concerns, Meta’s Sturgeon Data Centre will use a closed-loop, liquid-cooled system with dry cooling that requires no operational water use for cooling. Water use at the site will be limited to domestic uses, fire protection and equipment maintenance, the province says, with all required approvals subject to Alberta’s Water Act.

What Albertans are saying

On Reddit, users on r/Alberta have called the announcement “disgusting,” with one writing that they “hate” it, and another saying it should have been on the next referendum ballot.

“Ironically, this article can’t be shared on Meta platforms…” one joked.

Another wondered, “Who asked for this? Not FB users… not Alberta residents… Is this AI building its own infrastructure?”

“Didn’t we get a power supply warning during a cold snap a couple of years ago?” A user questioned. “Does our grid have the capacity to absorb the power demand of gigantic data centres? Or are we gonna risk freezing in the dark to please Zuck?”

“Oh, good, at least it’s Meta, headed by beloved and benevolent philanthropist and not at all reptile overlord Mark Zuckerberg, who has done so much good for the world,” another user quipped. “If there’s one thing I really wanted for our society, it’s more Facebook in our lives. We just don’t have enough right now.”

What do you think about Meta’s AI data centre announcement for Alberta? Let us know in the comments.