AI Boom and Grid Bottlenecks: Meta, BCE and NU E Power Compete for Electricity Capacity in Canada

Meta: Actions in Alberta Draw Criticism

In Alberta, the technology company Meta is building a new data centre in Sturgeon County, which will be Meta's 33rd facility of this kind. The company is investing more than CAD 13 billion and, in the run-up to the project, consolidated numerous parcels of land covering about 1,750 acres (just over 700 hectares). Alberta operates a pure electricity market in which generators are compensated exclusively for the electricity they feed into the grid. The grid operator AESO capped the short-term capacity for new connections by large consumers at 1,200 MW through 2027/28. Of this, 970 MW was allocated to the project linked to the Greenlight power plant, where Meta's data centre is now being built. According to Capital Power CEO Avik Dey, other hyperscalers have been evaluating the market in Alberta for about a year and a half. The Greenlight natural gas power plant, developed by a consortium led by Pembina Pipeline, is not expected to come online until the second half of 2030. Until then, Meta will draw electricity from the grid, including 250 MW under a supply contract with Capital Power. The Pembina Institute, a think tank unrelated to Pembina Pipeline, estimates that as a result, the average household in Alberta could pay an additional CAD 267 to 462 per year for electricity between 2027 and 2031. Meta and the provincial government reject this calculation. As early as the beginning of August, hundreds of residents in Morinville protested against the project, citing, among other things, the strain on the water supply and power grid. The opposition NDP is now calling for a moratorium on approvals for new AI data centres until stricter rules are in place.

BCE: State Regulatory Model Forces Self-Generation of Electricity

In the neighbouring province of Saskatchewan, the telecommunications company BCE operates under completely different conditions. The province relies on the state-owned monopoly network SaskPower, which controls energy generation and distribution. According to the Saskatchewan provincial government, BCE's data centre near Regina is set to grow from an initial 300 MW to up to 1.2 gigawatts. The estimated total investment of over CAD 50 billion includes tenants' computing equipment and energy infrastructure. So far, the project is based on a non-binding letter of intent. The project aims to establish a sovereign data infrastructure. Tenants include chip manufacturer Cerebras and AI cloud provider CoreWeave. An agreement regarding procurement and training is in place with the George Gordon First Nation. By comparison, Saskatchewan's previous record load was 3,910 MW; 1.2 GW would represent just under one-third of that. The province therefore requires, under its new Data Centre Framework, that new data centres develop their own power sources. Construction of the first phase is already underway, and the first data halls are scheduled to go into operation in the first half of 2027.

NU E Power: Land for Energy Infrastructure

Project developer NU E Power designs hybrid, off-grid energy parks and sells ready-to-build projects to large buyers. The company focuses on platforms that combine renewable energy with storage and gas generation. NUE has held development rights in the Regina metropolitan area since August 2025. In early August 2026, NU E Power announced a non-binding letter of intent to purchase nearly 12 hectares of land in the Regina area for a total of CAD 2.7 million. The deal calls for a refundable deposit of CAD 500,000 under certain conditions, as well as a cash payment of CAD 600,000 upon closing. A seller's loan covers approximately CAD 1.6 million of the purchase price and is not due until six months after closing. In addition, NU E Power will pay the seller CAD 100,000, which the seller will use specifically for rezoning, permits, surveying, and development. The site could potentially be used in the future to supply electricity to large consumers in the region. No concrete agreements have been made on this matter yet.

However, the legal framework remains a major hurdle. Because the land is agricultural, NU E Power needs a special exemption under the Saskatchewan Farm Security Act (SFSA). Regardless, the land must be subdivided and rezoned, as the area has not yet been designated for industrial use or developed. NU E Power's exclusive rights to the property run until the end of October. According to a capacity update from May, the company's project portfolio totaled approximately 1,112 MW gross and 614 MW net.

NU E Power: Project Pipeline in Alberta, Financing and Insights from the CEO

In addition to Saskatchewan, NU E Power is also expanding its presence in Alberta. In August, the company signed a non-binding letter of intent to fully acquire a 145 MWac solar project with planned battery storage. The project is currently undergoing the AESO grid connection process; there is no connection agreement or off-taker yet. CAD 100,000 is payable at closing and is credited against the Notice to Proceed payment. Seventy per cent of the remaining balance is payable on Notice to Proceed, and the final thirty per cent on the Commercial Operation Date. Completion of the acquisition remains subject to seven conditions precedent. In August 2026, NU E Power Corp closed an oversubscribed private placement, raising CAD 3.86 million in gross proceeds. At the end of September, the company also settled a liability of CAD 105,000 owed to Cronin Capital—a company with ties to a former board member—by issuing 700,000 units at CAD 0.15 each. The transaction did not require a formal valuation or minority shareholder approval under the applicable requirements.

If NU E Power succeeds in acquiring, rezoning, and developing the almost 12-hectare site near Regina, the property could potentially be used by large electricity consumers or data-centre operators in the region. Delays in rezoning or a rejection by local authorities could, however, affect the project. Grid connection procedures also present additional uncertainties. This is the case, for example, when grid operators require costly upgrades to high-voltage transmission lines. From a financial perspective, the company continues to require additional funding. The private placement provided additional liquidity, but according to the company, further financing will be required for the planned acquisitions. NU E Power's business model is operating in a market shaped by growing electricity demand, while its projects remain subject to regulatory, infrastructure, financing, and execution risks. Private investors should take a closer look at the background and details. CEO Broderick Gunning will provide further insights at the International Investment Forum (IIF) on Wednesday, October 7, at 6:30 pm CEST.