Alberta proposes $15 billion data centre near Edson powered by natural gas
Malachite One would consume 150 million cubic feet of natural gas daily and generate enough power for roughly 800,000 homes, pending provincial and county approvals.
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A massive data centre powered primarily by natural gas has been proposed for Crown land near Edson in west-central Alberta, marking another major AI infrastructure project for the province.
Emerald Energy Technologies, a subsidiary of Tourmaline Oil Corp., is planning to build Malachite One on Crown land about 40 kilometres southwest of Edson in Yellowhead County, next to Tourmaline's existing Banshee Gas Plant. The project would include up to 7.1 million square feet of data centre space.
Once fully built, the facility would consume approximately 150 million cubic feet of natural gas daily and generate 930 megawatts of electricity to power the data centre. An additional 74 megawatts could come from the provincial grid, bringing total available power to around 1.1 gigawatts—roughly enough electricity to power more than 800,000 homes. The data centre would be used for cloud computing, large-scale data processing, and training artificial intelligence models.
Construction is expected to happen in three phases over three to four years, potentially beginning in 2027 with the first phase operating by 2028. Emerald estimates the power-generation facility could cost up to $5 billion, with data centre infrastructure costing up to $15 billion. The project is projected to create 300 to 500 long-term jobs and 40 to 60 permanent positions at the power-generation facility.
The company is also considering adding carbon-capture and storage technology in 2031, which could capture up to 90 per cent of the power plant's carbon dioxide emissions—though this remains optional and is not part of the initial phase.
Before construction can begin, the project must go through several provincial reviews and approvals, including environmental impact assessment, water use authorization, and power-generation plans. Permission to build on Crown land and proper Indigenous consultation are also required. Yellowhead County must approve changing the land's use from forestry to industrial and decide whether to issue a construction permit. Emerald estimates the project could bring Yellowhead County an estimated $52.4 million in property taxes over time. As HighOnCity reported in June, data centres are booming across Alberta as the AI race heats up.
What water sources will Malachite One use, and what is the impact on local supply?
How will Indigenous communities be consulted, and who has been engaged so far?
Will Yellowhead County approve the land-use change from forestry to industrial?
We'll update this story as answers emerge.
By the numbers
How much natural gas would Malachite One consume daily?
Malachite One would consume approximately 150 million cubic feet of natural gas daily once fully built.
How many homes could the facility power?
The facility would generate enough electricity to power roughly 800,000 homes, combining 930 megawatts from its own power generation and up to 74 megawatts from the provincial grid.
What is the total estimated cost of the project?
Emerald estimates the power-generation facility could cost up to $5 billion, with data centre infrastructure costing up to $15 billion, for a total of up to $20 billion.
When is construction expected to begin and when could the first phase operate?
Construction is expected to potentially begin in 2027, with the first phase operating by 2028, completed over three to four years in three phases.
How many jobs would the project create?
Malachite One is projected to create 300 to 500 long-term jobs and 40 to 60 permanent positions at the power-generation facility.
