Alberta AI boom continues as Tourmaline proposes massive data centre near Edson

CALGARY — A new AI data centre and power project is being proposed for west-central Alberta despite the developer having yet to secure a tech company to operate the facility.Emerald Energy Technologies (EET), a wholly-owned subsidiary of Tourmaline Oil Corp., is proposing the construction of a one-gigawatt power-generation facility and accompanying data centre known as Malachite One.The project — if given the green light — would be located on Crown land next to Tourmaline’s existing Banshee Gas Plant, located approximately 40 kilometres south of Edson in Yellowhead County.According to CBC, the facility would use approximately 150 million cubic feet of natural gas per day to generate enough electricity to power a large-scale data centre designed to house high-performance computing equipment used for artificial intelligence and other data-intensive applications.Tech companies such as Meta and Amazon are among the companies that typically rely on large data centres, and Tim Shaw, manager of public affairs for Tourmaline, says EET is proposing to build the Yellowhead facility as early as 2027 in the hopes of attracting an operator.“What we're trying to do is put all the pieces together for a project that makes sense for the area that will bring in one of those data hall participants that need access to this type of infrastructure,” Shaw said.Last month, the company provided its first public briefing on the proposal to Yellowhead County council, and Deputy Mayor Brigitte Lemieux described the presentation as the beginning of what is expected to be a lengthy public review process..Meta making over $10B AI data centre investment in Alberta.“With all major developments in Yellowhead County, our priority is always to ensure that any project respects residents, protects the land and environment, and aligns with our long-term interests,” Lemieux said, but added it was too early to determine whether the project will ultimately meet those expectations.Malachite One comes as Alberta is seeing a growing number of AI and data processing projects come to the province.Recently, the UCP government announced the approval of Meta’s $13 billion investment to build a data centre in Sturgeon County, to be fuelled by Alberta natural gas via a $4.6 billion private pipeline, which in turn was announced on July 2.The uptick in interest from tech companies such as Meta is due to Alberta’s abundant natural gas resources, relatively cool climate and regulatory framework that encourages self-powered developments.Premier Danielle Smith has previously said that her government’s policies regarding the matter favour data centres which are capable of generating their own electricity, and Shaw stated most of the energy required for Malachite One would be produced on-site.The proposed location sits along Hwy. 47 near the hamlet of Robb and already has access to fibre-optic infrastructure capable of transmitting data across Canada and the United States.Tourmaline has said it is also evaluating the addition of a carbon capture and sequestration component that would compress carbon dioxide emissions into a liquid and inject them approximately 3,700 metres underground.The company is already drilling a sequestration well adjacent to the Banshee Gas Plant.Malachite One also carries a large price tag, as Shaw has stated the power-generation facility could cost as much as $5 billion, while the data centre itself could require up to $15 billion in additional investment.Should the project proceed, Tourmaline expects outside partners would help finance and develop the facility..AI data centres could become Alberta's next major source of natural gas demand.According to the company’s estimates, construction would create several hundred temporary jobs and, once operational, Malachite One could support between 300 and 500 long-term positions, while the power-generation facility would employ an additional 40 to 60 permanent workers.During the June 23 presentation by EET, Yellowhead County councillors raised concerns over electricity demand, water consumption and what would happen to the site once operations eventually cease.The company indicated the facility could potentially be connected to Alberta’s electricity grid in the future if market conditions or AI demand shift.Lemieux also said councillors questioned the company on plans for reclamation at the end of the data centre’s life — which is estimated to be between 30 and 50 years — including dealing with the disposal and recycling of graphics processing units (GPUs), the specialized computer chips that would form the backbone of the data centre.“We recognize the potential economic opportunity that this project, at this scale, could bring to the region,” Lemieux said.“However, those benefits have to be balanced with responsible development.”In its presentation, EET said Malachite One’s water usage from the Embarras River and McLeod River would be limited to 1.74% and 0.19% of annual flow rates, respectively, which Shaw said equals about 50 litres per second from both rivers combined.He added the data centre would be cooled using a closed-loop system so it would not actively consume fresh water and that water usage is primarily for the process of turning natural gas into electricity.EET is currently drafting an FAQ document to address the county’s questions, and the company expects to host open houses in the area later this year.

Alberta AI boom continues as Tourmaline proposes massive data centre near Edson

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