Sunny Sarpal says: “So from our power generation and our AI infrastructure, we are super excited, because we feel like on a global on a global presence, this is going to stand out. It’s really going to showcase how we can actually not only solve the infrastructure problem from power generation, and AI infrastructure, but do it sustainably and economically.”

The initial build will span 119 acres and will cost $100 millionfor initial power generation and infrastructure. The town of Olds also recently unveiled its own data center project.

​Link: https://www.youtube.com/watch?v=wHFSwvjTAA4

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The new campus, expected to be operational by the end of the year, is being designed to support organizations with heavy computing needs—particularly companies working in artificial intelligence, technology, and agriculture. What sets the project apart is its on-site, waterless power generation system, a feature intended to address the growing energy demands of AI while remaining economically and environmentally responsible.

Infrastructure Built for the Next Wave of AI

The first phase of development is focused on delivering the core infrastructure needed to support AI workloads, including reliable power generation and scalable data centre capacity. By producing power on-site, the campus aims to offer stability and cost efficiency for businesses that depend on continuous, high-performance computing.

According to project lead Sunny Sarpal, the initiative is designed to stand out on a global scale.

“From our power generation and our AI infrastructure, we are super excited,” Sarpal said. “On a global level, this project will showcase how we can solve both power generation and AI infrastructure challenges in a way that is sustainable and economically viable.”

A Significant Investment in Central Alberta

The initial build will cover approximately 119 acres, with an investment of $100 million dedicated to power generation and foundational infrastructure. This phase is intended to create a strong platform for future expansion as demand grows across industries reliant on data, automation, and artificial intelligence.

Local leaders hope the development will attract companies seeking dependable, affordable, and forward-looking infrastructure—particularly those looking to balance performance with sustainability.

A Growing Regional Trend

Red Deer is not alone in this push toward advanced digital infrastructure. The nearby town of Olds has also recently announced its own data centre project, signalling a broader regional shift toward technology-driven economic development in central Alberta.

Together, these initiatives suggest a growing recognition that data centres and AI infrastructure will play a critical role in shaping the region’s economic future—creating opportunities for investment, innovation, and long-term growth.

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The report highlights why data centers rank among the strongest drivers of U.S. nonresidential construction activity. 

In fact, Moody’s said the data center construction boom is still “in its early stages.” Larger hyperscale data centers with capacity levels of more than 300 megawatts will begin coming online this year, exponentially increasing capacity, according to the report. 

But while projects are increasing in size, developers are accelerating construction schedules to meet hyperscalers’ push to shorten speed to market.

That’s because more tenants are willing to exempt power and essential utility availability from completion requirements and increase their share of risk in case of unexpected events. These changes to risk-allocation help accelerate construction as many of these new builds may be delivered late, according to Moody’s.

High global demand for skilled labor and essential materials doesn’t help. 

Miners of copper and rare earth metals and manufacturers of essential cooling and power related equipment are cautiously ramping up production to meet demand from data centers. But the additional product will likely still be insufficient to moderate price increases in 2026, according to the report.

That means new data centers will cost more than older facilities located in similar markets, Moody’s said. Nonetheless, the report does not forecast lower demand because of those higher price tags.

In northern Virginia, the largest data center market in the world, leases for hyperscale data centers with more than 4 megawatts of capacity increased to a range of $130 to $190 per kilowatt per month in 2025, up from a range of $110 to $150 in 2024. The same increases were absorbed in other data centers markets such as Atlanta, according to the report, which attributed the difference to financing structures.

Moody’s said more projects are allowing construction debt to be fully repaid to lenders within long initial lease terms, which often exceed 15 years, thus reducing credit risk and expanding more access to capital. That shift allows developers to push forward with costly builds despite rising construction delivery costs.

“To balance the uncertainty of a rapidly growing market, an increasing number of new financings are being structured with the ability to fully repay their construction debt within their initial lease term without any extensions or renewals,” the report said. “This lowers the credit risk of the data center project financing compared to data centers that are exposed to lease renewal risk to repay their development financing.”

Most development capital to date has come from project finance, corporate bank loans, private capital, developer equity or tenant equity, said Moody’s, adding that this trend will continue in 2026.

Correction: In a previous version of this article, the spending timeline was inaccurate. It is $3 trillion by 2030.

Sebastian Obando (Reporter)

Moody’s sees $3T in data center spending by 2030 | Construction Dive

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Alberta’s technology minister has been directed to push forward with attracting data centres and pursuing digital innovation as part of the province’s strategy to boost new investment and revenue.

“​My goal is over the next five years to try and attract $100 billion worth of investments into data centres,” Nate Glubish, Alberta’s technology and innovation minister, said in an interview with CBC News.

“That would mean hundreds of hundreds of millions of dollars of incremental tax revenue … which means more money for schools, hospitals and public services that the province cares about.”

That goal was reinforced by the mandate letter he received Oct. 16 from Premier Danielle Smith. 

A hot ticket item on that letter was the Artificial Intelligence Data Centres Strategy, which some experts — and ordinary citizens —have concerns about as proposals begin popping up in communities.

‘The most attractive place to build in North America’

Alberta’s AI Data Centres Strategy says it “sets the path to securing the province’s position as the most attractive place to build artificial intelligence data centres in North America.”

The strategy outlines steps like keeping taxes low, modernizing regulations and providing funding opportunities to secure Alberta as a destination of choice for companies looking to build AI data centres.

Another advantage the province has is its geography, according to University of Alberta economics professor Chetan Dave. 

“We’ve got lots of flat land. We have winters that are very sunny,” he said, emphasizing how beneficial it is for winters to keep things cool.

“And most importantly, what we have is an intellectual infrastructure … for developing AI,” he said, referring to schools like the University of Alberta and the University of Calgary. 

“So is it a good idea to invest? Absolutely.”

More money, more problems?

But the strategy doesn’t come without concern, notably around water usage and electricity capacity.

The Alberta Electric System Operator is limiting how many data centres can join the grid, saying it can’t connect all the current projects being proposed – and generally, those proposals want to tap into the grid more than they suggest bringing their own power.

A map and corresponding table published by the AESO indicates that Alberta has received 231 data centre applications by the time of publication. 

Since there is such limited capacity, there’s a need to ensure new centres aren’t trying to get around paying provincial taxes. This led to the introduction of a two per cent levy on computer hardware for some grid-connected centres starting Dec. 31, 2026 – which companies can offset against their corporate income taxes.

“[If they] pay corporate income taxes here, they shouldn’t end up owing a single dollar of levy,” said Glubish.

“We don’t want to give away access to significant electricity capacity from our grid to companies that don’t intend to be good corporate citizens”.

Dave wants to see policies put in place around using different sources of energy equally, and taxes from oil and gas reinvested into growing renewables.

“Not only will it fuel the energy demands of these data centres, but it will keep the price of energy down for the residents,” he said.

Glubish said he believes that’s impossible.

“[Centres] need 99.9 per cent up time and renewables cannot offer that.”

A broader concern in the realm of electricity is what that will do for the bottom line of Albertans’ power bills, as increased costs are seen in households across the U.S. around the centres.

Glubish said he doesn’t expect that to be a problem in Alberta. He said centres approved will be in locations close to power plants, and therefore won’t require building additional infrastructure.

“There are many jurisdictions in the U.S. that rushed to embrace data centres at all costs with no foresight, no engineering and no analysis,” he said.

“The key is we have to choose the right locations so that we don’t require billions of dollars of additional transmission infrastructure to support new projects”.

Mid-sized towns are prime candidates

Due to land and grid availability, data centres are most likely to start cropping up in small and mid-sized communities.

The Municipal District of Greenview, near Grande Prairie, may soon be home to what celebrity investor Kevin O’Leary says would be the world’s largest artificial intelligence data centre.

But not everyone is happy with the data centre projects being proposed, with municipalities like Rocky View County rejecting a plan for a facility, citing concerns about its proposed location and potential impacts on neighbouring farmers. 

One project was recently approved in Red Deer County. That municipality approved a discretionary development permit in early October.

It’s expected to employ five to seven people, with an expected completion in 2026. The company behind the proposal, Agritech Haven International (AHI), has stated it will generate its own electricity, and have a waterless, ultra-low noise design. 

Concerns about noise were raised by residents of 22 homes located within two kilometres of the planned site. An assessment given found the sound levels will conform to regulation.

When the proposal was passed by Red Deer County council, the only vote against it was from then-councillor Brent Ramsay. Ramsay, who was elected as the county’s mayor this week, declined a request from CBC News for comment.

Glubish said he “wouldn’t want [a centre] built right next to my house,” but added AHI’s proposal is a smaller facility and he will “respect municipalities’ autonomy” when it comes to where these projects should be built.

The rest of Alberta’s tech future

The mandate letter Glubish received this month sets out a series of other expectations, including launching mobile health-care cards and the new Alberta Wallet, as well as including personal health numbers on driver’s licences and improving the effectiveness of Alberta Health’s computer systems. 

It also states that he is to develop a plan for training staff on generative AI for operations, and in tandem, a digital strategy focusing on security and privacy. 

He’s tasked with ensuring access to reliable high-speed internet – particularly, in Indigenous communities.

An intellectual property strategy is also in the works to allow government ownership interest in IP developed using taxpayer dollars – like those developed at public universities.

Lina Elsaadi (Reporter)

https://www.cbc.ca/news/canada/edmonton/alberta-technology-data-centres-9.6953444

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A data center is to be built on a 120-acre land parcel between the Canadian cities of Calgary and Edmonton.

On October 7, the Red Deer County Planning Commission voted to approve an application for a 1,000 sqm (10,765 sq ft) modular data center on a 120-acre land parcel in Blindman Industrial Park. This will be accompanied by the construction of an administration building.

Visualization of the data center– Red Deer County

Details about the facility’s estimated capacity were not shared.

The county, located in the southern half of Alberta, one of Canada’s western provinces, received the permit application for the data center in mid-July. The applicant, Agritech Haven International (AHI), is a “technology-focused real estate development company” known for backing a vertical farming project in the province.

CEO Sunny Sarpal has said that the data center would be waterless, ultra-low noise, and employ minimal amounts of staff, and stated that the facility would be operated by a “global technology partner.” Future phases of the development could include vertical farming, education and research facilities, and telecom and fiber infrastructure.

Concerns about the potential noise generated by the facility were expressed by citizens throughout the development process.

Alberta’s abundant energy has turned it into one of Canada’s data center hotspots. The province has attracted its fair share of large-scale projects: earlier this month, reports surfaced that tech giant Meta might be eyeing a natural gas-powered data center near Edmonton, and just last year, businessman Kevin O’Leary proposed the development of a 5.5GW campus, dubbed ‘Wonder Valley,’ near the northwestern city of Grande Prairie.

https://www.datacenterdynamics.com/en/news/120-acre-data-center-to-be-built-between-calgary-and-edmonton-canada

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A new artificial intelligence data centre has been approved for Red Deer County in the Blindman Industrial Park, designed as a water-less, ultra-low noise facility on a 120-acre site with its own heat and power plant. The project will include a nearly 10,800-square-foot modular data centre and a 5,000-square-foot administration building, and is expected to employ five to seven people.

Location on the map is not precise. 

https://majorprojects.alberta.ca/details/Blindman-Industrial-Park-AI-Data-Centre/11890

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Companies behind an artificial intelligence data centre in Red Deer County announced a major construction milestone on Monday. Havenz Smart Communities, in partnership with Energy Haven and Indigenous equity partner Turning Stone, said the first set of hydrogen-ready reciprocating engines have arrived, and construction is now underway of AHI Hub of Innovation in the Blindman Industrial Park north of Red Deer. “This is a gratifying moment for our project team. The first power module remains on track to be commissioned in the third quarter of 2026,” said Sunny Sarpal, CEO of AHI Hub of Innovation, in a statement.

Tier-1 hydrogen-ready reciprocating engines are being installed to provide the reliability and flexibility required for AI computing. “The unique distributed power architecture of our project will enable expansion in a planned, modular way, which means generating capacity can be scaled directly to demand from customers,” Sarpal said. He said the phased, modular approach being used supports rapid scaling, long‑term tenancy, and institutional investment without the delays associated with traditional grid‑dependent developments.

Construction of the first power block is now fully underway, including the building foundations, mechanical and electrical work, and supporting infrastructure. Future phases of the project will further expand on‑site power generation, energy storage, and grid‑interface capabilities, to create a scalable platform for both customers and export opportunities. The industrial innovation campus, designed to scale-up to deliver hundreds of megawatts of on‑site generation, and is being engineered for power‑intensive sectors such as AI data centres, cloud infrastructure, advanced manufacturing, and agri‑tech. The project’s developers said once the innovation hub is fully built out, it will be positioned to attract private investment in large‑scale power assets, digital infrastructure, and tenant‑driven capital projects.

The hub will also generate significant economic benefits for the Red Deer region, such as construction jobs, long‑term operations roles, Indigenous and regional supply‑chain participation, as well as additional tax revenues for municipal and provincial governments. “By providing power‑secure, execution‑ready infrastructure, we are further strengthening Alberta’s ability to retain global AI and industrial investment,” Sarpal added.

For more information visit www.ahicampus.com.

Read more at: https://reddeeradvocate.com/2026/01/26/construction-accelerates-at-ai-data-centre-near-red-deer/

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Project Update: AHI Hub of Innovation Is Taking Shape

Construction is officially underway at the AHI Hub of Innovation in the Blindman Industrial Park, just north of Red Deer. Today’s announcement highlights that the first set of hydrogen-ready reciprocating engines has arrived on site a critical milestone as the project moves toward a commissioning target in the third quarter of 2026.

These engines will deliver reliable, flexible power tailored to support the high demands of AI computing and other power-intensive industries.

Why This Matters

What sets this development apart is the distributed, modular power architecture being built into the facility. Rather than relying solely on traditional grid connections, the hub is being engineered to scale its energy generation capacity alongside demand, enabling:

• Institutional-ready expansion without long grid timelines
• Rapid scaling for future tenants and new build-outs
• A foundation for both on-site power generation and energy export capabilities

This approach is aligned with broader energy and AI infrastructure strategies increasingly prioritized in Alberta’s economic planning. The province’s AI data centre strategy emphasizes scalable power capacity, efficient infrastructure platforms, and competitive advantages that attract global investment.

 Economic Impact for Central Alberta

Beyond the engineering and technology narrative, this project delivers clear regional economic benefits:

• Construction jobs and long-term operations roles
• Participation from Indigenous and regional supply chains
• Increased municipal and provincial revenue through sustained activity
• A stronger value proposition for future tech and industrial tenants to set roots in Central Alberta

Once complete, the AHI Hub of Innovation is designed to serve sectors such as AI data centres, cloud infrastructure, agri-tech, and advanced manufacturing — positioning the region as a high-performance hub for next-generation investment.

A Broader Strategic Shift

Central Alberta’s investment in data infrastructure is not happening in isolation. Alberta has been actively promoting itself as a destination for AI data centre development thanks to competitive power markets, scalable land and infrastructure advantages, and a regulatory environment that supports innovation.

This project is one of several in the province signaling that the region is not only ready to host advanced digital infrastructure but is building capacity that future-proofs power and compute needs — at a time when global competition for data infrastructure assets is intensifying.

Read the original article from Red Deer Advocate here: Construction accelerates at AI data centre near Red Deer

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