Meta To Shell Out Billions For New AI Data Center Outside US

By Ireland Owens

California-based technology giant Meta announced Wednesday that it is constructing its first artificial intelligence data center in Canada.

Meta said in a press release that its new 1-gigawatt “AI-optimized” data center will be located in Alberta, Canada, and aims to help power the company’s “AI innovations and core products.” The data center project represents a total investment of more than 13 billion Canadian dollars. (RELATED: Meta Hires Former Trump Official, Senator’s Wife To Top Role)

Meta projects that the data center project will help support more than 3,000 construction workers at peak and over 300 operational jobs. The company also said it is planning to invest approximately 60 million Canadian dollars for “local infrastructure improvements that will benefit the local community” and disburse grants and funding to local nonprofits as part of the project.

Meta said that any electricity usage from its latest data center project “will be matched with 100% clean and renewable energy,” according to the press release. The tech company also noted that it plans to utilize “a water efficient closed-loop, liquid-cooled system with dry cooling, which means there will be no operational water use in the cooling system” for the project.

“As a result, water use at the site will be limited to domestic uses, fire protection safety, and equipment maintenance,” per the news release.

AI data centers consume large amounts of electricity and water. Large data centers can use up to 5 million gallons of water daily, equal to the water usage of a town populated by 10,000 to 50,000 individuals, according to the Environmental and Energy Study Institute.

On the other hand, two recent studies say they actually reduce electric power rates for the public, by spreading out fixed costs over more kilowatt-hours, creating economies of scale, and adding power consumption mainly in non-peak periods, enabling power companies to recover fixed costs.

Data centers consume about 0.5% of the fresh water used in America, far less than agriculture, and less than the amount used by factories.

In June, Meta announced the launch of a new free program to train American workers for data center construction jobs. Meta also intends to begin manufacturing an AI chip in September as part of a broader effort to bolster overall ​computing power in 2027, Reuters first reported on Thursday, citing an internal memo.

Recent polling indicates that many Americans are broadly opposed to the construction of new data centers nationwide. A Gallup survey released in May found that 7 in 10 Americans were not in favor of constructing AI data centers in their local communities.

Republican Texas Gov. Greg Abbott suggested on June 30 that he wants to “prohibit” new data center projects in certain rural parts of the state, Texas Tribune reported.

“We must prohibit them from building AI data centers in rural Texas neighborhoods,” Abbott said, also claiming that the issue “dovetails right into fighting for East Texas values,” according to the outlet.