Alberta Seeks Data Center Dominance-Residents Have Other Ideas

A massive AI data-center project backed by entrepreneur and Shark Tank investor Kevin O’Leary has become the latest flashpoint in a growing debate over Alberta’s plan to become one of North America’s leading hubs for artificial intelligence infrastructure.

The proposed Wonder Valley development in northern Alberta would span roughly 7,000 acres and require a multigigawatt energy footprint, making it one of the most ambitious AI-focused projects proposed in Canada. Supporters see it as a chance to create jobs, attract investment and secure Alberta’s place in the AI economy.

Critics, however, say projects of this scale raise serious questions about electricity demand, water use, land impacts and whether local communities are being adequately consulted before approvals move forward.

The dispute is increasingly viewed as a test of whether Alberta can achieve its ambitions of becoming a data-center powerhouse while maintaining public support for the infrastructure required to get there.

Newsweek contacted O’Leary Digital via email for comment.

Why Alberta Is Betting Big on AI Infrastructure

The battle over Wonder Valley comes as Alberta aggressively markets itself as a destination for hyperscale data centers and AI computing facilities.

The global boom in artificial intelligence has sparked a race to build massive computing campuses capable of training and running increasingly powerful AI systems. Those facilities require enormous amounts of electricity, cooling infrastructure and land.

In a strategy released in December 2024, Alberta said it aims to become “the most attractive place” in North America for AI data centers, citing abundant natural gas supplies, a competitive electricity market, a cold climate and streamlined regulations.

The province has also promised expedited approvals and a concierge-style service for developers seeking to build major projects.

Newsweek contacted Alberta’s Ministry of Technology and Innovation for comment on the province’s data-center strategy.

That pitch has resonated. Alberta’s major-projects registry includes proposals ranging from eStruxture’s CAL-3 data center near Calgary to Wonder Valley.

Provincial officials argue Alberta’s energy resources provide a natural advantage. The province produced roughly 60 percent of Canada’s natural gas in 2024, giving it access to the fuel needed to power energy-intensive AI operations.

When Big Ambitions Meet Local Resistance

Supporters frame Wonder Valley as a generational economic opportunity that will create jobs and tax revenue, anchoring Alberta in the global AI supply chain. But opposition has hardened where ambition meets local reality.

Critics say rural infrastructure might not support a project of that scale, and that promised benefits remain abstract while potential costs-land use, water demand, power reliability-are concrete.

This tension helps explain why resistance has surfaced even in communities that typically welcome industrial development.

Unlike remote oil and gas sites, data centers often cluster near existing power and communications infrastructure-placing them closer to towns that must live with their footprint.

Water, Land and Power Under Scrutiny

Concerns over water use and land impact have been especially prominent.

In Rocky View County, just north of Calgary, the council voted 6-1 in September 2025 to reject a proposed data-center campus after residents objected to building on farmland and raised alarms about water consumption, drainage and effects on neighboring farms, CBC News reported.

Those fears echo province-wide. A March 2026 investigation by Canada's National Observer, an independent news outlet, found roughly three-quarters of 38 proposed Alberta data-center campuses were planned in regions facing high or extremely high water stress.

In one example near the hamlet of Indus, project materials cited daily water use of 1,500 cubic meters-about 547 million liters a year-a striking figure in a province prone to droughts and water restrictions.

Alberta's strategy acknowledges that cooling choices will depend on water-license availability and local conditions.

Indigenous Opposition Moves to the Courts

Indigenous leaders have added another layer to the debate, with the dispute now spilling into both public criticism and the courts.

In a statement shared with Newsweek through a spokesperson, Chief Sheldon Sunshine of the Sturgeon Lake Cree Nation accused the province of bypassing both environmental scrutiny and Indigenous engagement.

"The province waiving the environmental impact assessment was a huge red flag," Sunshine said, arguing that if the project went ahead it "it will be one of the largest single-site heat sources on the planet.”

The claim echoes analysis by Utah State University physicist Robert Davies, who has estimated that a project of this scale could generate a total thermal load in the tens of gigawatts.

“There was zero consultation with us, and we are gravely concerned with the damage Wonder Valley would do to the environment and biodiversity our people have depended on for generations,” Sunshine added.

Sunshine also alleged the approval process had been structured to avoid direct consultation with his Nation, saying provincial authorities "granted a water license with zero consultation" and were proceeding "piecemeal to avoid any consultation at all."

The dispute has now moved into court. In a filing before Alberta's Court of King's Bench, the Sturgeon Lake Cree Nation is seeking a judicial review of a provincial decision to grant a water license tied to the Greenview project without consultation, arguing it received no advance notice and was denied the opportunity to weigh in before approvals were issued.

Through the spokesperson, Sunshine added that the Nation has asked the federal government to step in and conduct its own environmental assessment.

“Alberta's government is aware of the legal matter involving Sturgeon Lake Cree Nation. As the case is currently before the courts, it would be inappropriate to comment on the specifics,” Karah Folk, press secretary for the Alberta Ministry of Indigenous Relations, told Newsweek.

At the same time, some First Nations have voiced a different concern, arguing Alberta’s cap on new data-center grid connections could slow development of projects that might benefit Indigenous communities.

Together, those disputes highlight broader questions about who should benefit from Alberta’s AI expansion and what safeguards should accompany it.

Alberta Is Not Alone

Alberta's situation is part of a broader race to attract AI infrastructure.

Canada's energy regulator counts 239 data centers nationwide, noting that provinces like Ontario and Quebec lure projects with cheap electricity, a cleaner grid and cool climate.

Ontario has moved to prioritize grid access for data centers that offer clear local benefits, while Hydro-Québec is planning for an extra 4.1 terawatt-hours of data-center demand by 2032.

In the U.S., Virginia-North America's biggest data center market-has seen record electricity load growth driven by data centers, according to the U.S. Energy Information Administration. Alberta is chasing that model, but faces similar constraints: competition for grid capacity, strains on local resources and rising community scrutiny.

Does Alberta’s Independence Debate Matter?

The data-center battle is playing out amid a unique political backdrop.

Alberta will hold a referendum on October 19, 2026, on whether to pursue a path toward possible independence from Canada-a separate issue that hasn't directly factored into data-center debates.

Premier Danielle Smith, who called the vote, has said she supports remaining in Canada, and recent polling suggests most Albertans agree.

Notably, public fights over data centers have centered on local land, water and power issues rather than constitutional ones. Opposition to projects spans ideological lines, driven by practical questions of land use, consultation and resource allocation more than provincial identity.

The Bottom Line

If Alberta is to become a data-center powerhouse, the decisive test isn't how well it markets cheap energy and ambition. It's whether the province can persuade communities that the land, water and power trade-offs of hosting these facilities are worthwhile-and that the benefits of the AI boom will be felt locally, not just promised.

2026 NEWSWEEK DIGITAL LLC.

This story was originally published June 9, 2026 at 7:52 AM.