Alberta-based data center developer places wagers on resolving power deficiency issue

In a groundbreaking move, Beacon AI, a startup specializing in AI data centers, has announced plans to develop 4.5 gigawatts of AI data centers in Alberta, Canada. This strategic move aims to address the energy constraint issue that delays around 20% of planned data center projects globally.

Alberta, a region not typically associated with computing power, offers several advantages for Beacon AI. The region is rich in natural resources, with more than half of Canada's gas production. This abundant energy source, coupled with significant renewable energy resources, makes Alberta suitable for large-scale, carbon-neutral, and reliable AI infrastructure projects.

The development will take place in incremental 100-MW buildings, with each of the five development sites in Alberta having the capacity to host 400-megawatt data centers. The first service for these data centers is planned for the end of 2027, with Beacon AI's largest single-site data center campus in Alberta potentially reaching 1.8 gigawatts in computing capacity.

Josh Schertzer, the newly appointed CEO of Beacon AI, joined the company after 17 years with Blackstone, most recently serving as the CTO of its technology division. Schertzer believes that Alberta will be able to provide an astronomical amount of compute and power for hyperscaler customers.

The competitive corporate income tax rate in Alberta is another attractive factor for Beacon AI. Last December, Alberta Technology Minister Nate Glubish announced plans to facilitate the development of $100 billion of AI infrastructure in the next five years.

In crowded regions in the U.S., a company can spend up to seven years waiting for a grid connection. However, Alberta's excess grid capacity, a rarity in North America these days, provides a quick solution. Developing on-site generation capabilities in Alberta takes time, but it is planned for the future, with implementation expected around 2029 or 2030.

Beacon AI originated from Nadia Partners, an investment firm headquartered in New York specializing in AI and infrastructure. The startup emerged from stealth in January 2025. In addition to Alberta, Beacon AI is considering sites in the Dallas-Fort Worth area, Texas, and the Canadian province of New Brunswick.

This strategic move by Beacon AI is expected to boost the AI and data center industry in Alberta, potentially creating numerous job opportunities and contributing to the province's economic growth.

Alberta-based data center developer places wagers on resolving power deficiency issue