Wonder Valley data centre project in Alberta faces significant delays, raising concerns about future prospects
In northwestern Alberta, the ambitious Wonder Valley data centre project, championed by investor Kevin O’Leary, is facing significant delays. Initially announced with great enthusiasm in December 2024, construction was slated to commence by 2026, with hopes of the first phase being operational by 2027. However, recent updates indicate that preliminary work is over a year behind schedule, pushing potential construction back to late 2028.
The proposed facility is planned to rise in the Grande Prairie region, an area rich in natural gas reserves from the Montney Formation. While the initial expectations were high, with projections of producing 7.5 gigawatts of computing power—enough to power two-thirds of Alberta’s grid during peak usage—the site remains undeveloped, characterized by dirt tracks and wild terrain. Executive Director of Industrial Development for the Greenview Municipal District, Kyle Reiling, has indicated that the municipality is ready to accommodate the data centre, highlighting significant investments in infrastructure, including over $70 million in upgrades to highways leading to the site.
Reiling noted that there has been substantial preparation for supporting industries, including completed assessments and developed access routes. Despite O’Leary Ventures’ lack of finalized agreements for land acquisition and the absence of regulatory applications or consultations with Indigenous communities, regional leaders like Greenview Reeve Ryan Ratzlaff maintain optimism. Ratzlaff believes O’Leary’s team has opted for a more deliberate approach to ensure every aspect of the project is ideal.
Local stakeholders, including Grande Prairie Mayor Jackie Clayton and Vanessa Sheane, president of Northwestern Polytechnic, express eagerness to support the venture and are prepared to provide skilled labor for the infrastructure and operation of the data centre. Although previous attempts to bring major industrial players to the region have not been successful, proponents view Wonder Valley as potentially transformative, signaling the area’s viability for further high-tech investments.
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Data centre experts underscore the importance of timely construction, noting that tech giants are racing to expand their capacity due to the growing demands of artificial intelligence. While there is considerable interest from major companies, the lack of finalized tenants for Wonder Valley raises concerns about its future. Proponents believe that once construction begins, it could catalyze significant economic development in the area.
Historical context reveals a pattern of failed projects in the Greenview area, leading to skepticism among potential investors. However, proponents argue that Wonder Valley’s approach—converting natural gas into digital services rather than physical products—positions it favorably against traditional petrochemical projects. As the region has attempted to transition from fossil fuels to high-tech industries, the path forward remains complex, marked by both potential benefits and existing challenges.
Concerns regarding Indigenous rights have also been raised, notably by the Sturgeon Lake Cree Nation, which has expressed strong opposition to developments in its traditional territories without proper consultation. The municipality has emphasized its commitment to involving local communities as plans progress.
As preliminary work continues on-site, community leaders remain hopeful that Wonder Valley will overcome its hurdles, with some predicting a shift toward more substantial local economic growth if the project comes to fruition. Despite the delays, stakeholders are confident that the groundwork laid so far will ultimately lead to a groundbreaking moment for the region.
