European-Backed Consortium Unveils Multi-Billion Dollar Data Center Plan in Alberta, Leveraging Natural Gas
January 3, 2026
A major European-backed data center initiative in Alberta, Canada, has outlined a vision for up to €8 billion ($9.4 billion) in investment, positioning the hydrocarbon-rich province as a competitive destination for power-intensive computing, particularly for artificial intelligence. This move capitalizes on Alberta's strategic pivot to leverage its vast and inexpensive natural gas reserves to attract next-generation digital infrastructure.
The project is a joint venture between Data District, a division of Swiss manager Alcral AG, and Portugal-based Technologies New Energy Plc (TNE). The consortium's long-term blueprint aims to develop a staggering 1 gigawatt of data center capacity across the province. The first phase, valued at €780 million and announced in December, will break ground on an initial site in Olds, located approximately one hour north of Calgary.
Carlos Caldas, CEO of Data District, revealed that the group initially considered Texas for its North American expansion but was swayed by Alberta's business environment. "We were very impressed with the province’s approach to business and data centers in specific," Caldas stated. The first-phase construction will be funded by Alcral and a UK firm, with reported interest from Asian sovereign investors. If fully realized, this would rank among the largest current industrial projects in Alberta.
The announcement follows a recent political agreement between Alberta's Premier Danielle Smith and federal officials, which eased certain clean electricity regulations and emissions limits on the condition that Alberta strengthens its carbon pricing mechanisms. This framework is designed to facilitate energy-intensive projects, including data centers. Julio Perez, CEO of TNE, highlighted this synergy: "I think Alberta has that advantage where there is gas and it’s their own gas, and they are encouraging now the use of that gas for data centers."
Operationally, the planned facilities will generate 80% of their power on-site using natural gas, with the remaining 20% drawn from the provincial grid. This partial grid reliance will likely subject the project to a planned provincial hardware tax. Despite not having secured firm customers yet, Perez expressed confidence in market demand, noting, "There was no prerequisite to see a signed occupancy or usage agreement with anyone. The funding is already there."
The project underscores a significant trend of traditional energy hubs reinventing themselves as AI and computing hubs by leveraging existing resource and infrastructure advantages. Its scale and funding model signal strong investor appetite for data center assets in markets offering cost and regulatory synergies.
Source: rigzone
