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Crusoe, KDP to Develop AI Data Centers in Alberta

Data Centers

Business Honor
12 Febuary, 2025

Crusoe partners with KDP to develop AI data centers in Alberta, powered by natural gas plants.

Crusoe, an AI data center developer, has signed a multi-year framework agreement with Kalina Distributed Power (KDP) to develop colocated AI data centers in Alberta, Canada, fueled by KDP's natural gas-fired power plants. The transaction includes a long-term Power Purchase Agreement (PPA) of at least 15 years for three 170MW gas-fired KDP-owned power plants. Crusoe will establish, own, and manage the data centers and buy power in order to provide stable cash flows to KDP that will help secure financing for the projects.

The deal includes three strategic locations: the 65-acre Myers Energy Park, the 160-acre Alsike Energy Park, and the recently acquired 320-acre Crossfield Energy Park. All these sites have access to vital infrastructure such as electricity transmission, gas pipeline, and fiber optic, which will guarantee smooth operation for AI data centers. The plants will also employ carbon capture and sequestration technology to abate environmental effects.

Crusoe's turn to data centers for AI from cryptocurrency mining is a drastic turn, with the aim of meeting the increasing need for AI infrastructure. The company has already made announcements of deals with Digital Realty and atNorth's ICE02 data center in Iceland. As part of its expansion strategy, Crusoe is also working with Blue Owl Capital on a joint venture to construct a huge data center in Abilene, Texas.

Alberta is becoming a hot spot for AI data center developments due to its abundant and affordable natural gas supply, providing a reliable and sustainable power source for the industry. The province produces over half of Canada’s natural gas, with several operators, including Pine Cliff Energy and Gryphon Digital Mining, making agreements to secure long-term gas supplies for their data center operations.

This increase in data center activity in Alberta is also partly a result of provincial regulations that mandate operators to team up with generating companies and arrange their own power, so natural gas-powered solutions become an attractive choice.