When Kevin O’Leary first announced his audacious plan to build what he described as the world’s largest AI data-center industrial park near Grande Prairie in northern Alberta.
The project, dubbed Wonder Valley, carried a lifetime price tag of C$70 billion and would offer 7.5 gigawatts of power capacity. Moreover, it spans thousands of acres in the Greenview Industrial Gateway (GIG) region. At the time, the province of Alberta hailed it as transformational.
Yet nearly a year on, despite boasts, grand visuals and public support, the project remains largely on paper. A dream clouded by regulatory hurdles, Indigenous rights objections, infrastructure ramp-up issues and credibility questions.
In short, a jaw-dropping number that has not yet materialized into bricks and bytes. Here’s a closer look at why this mega-investment feels more like a mirage than reality and what it tells us about the perils of megaproject hype.
The Dream: Promise of Scale, Jobs, Power
In December 2024, Kevin O’Leary ventured his investment vehicle, and the Municipal District of Greenview announced a Letter of Intent to create Wonder Valley on thousands of acres of land.
Alberta’s government joined the chorus. Premier Danielle Smith called it fantastic news for Alberta, while Tech & Innovation Minister Nate Glubish depicted this as central to positioning Alberta as an AI and data hub. Thus, a way to channel local natural-gas resources into high-value tech infrastructure.
The project seemed to tick every box: cold climate (ideal for data-center cooling), abundant natural-gas feedstock, rural land, and government backing. It promised thousands of construction and operations jobs, billions in tax revenue, and a dramatic refocus of the region’s economy.
The Reality: From “Announced” to “Built”
Despite the fanfare, reality checks quickly began to emerge:
1. Permits & Licensing Far From Complete
The local First Nation, Sturgeon Lake Cree Nation, issued a cease and desist to Alberta’s premier in January 2025, pointing out that it was not consulted despite the project being declared to lie within its traditional territory. In the same month, provincial officials confirmed that no formal Water-Act license had yet been issued for the project.
2. First-Phase Outlay is Tiny Compared With the Headline Figure
While the lifetime figure is $70 billion, the documented first phase capacity is 1.4 GW, US$2 billion, a sliver of the total projection.
3. Energy and Environmental Concerns
Best-case projections include geothermal plus natural gas power for the site. Yet critics point out that reliance on gas undercuts Alberta’s climate goals and raises issues about carbon emissions. Moreover, regulators have not yet approved grid-tie-in or off-grid build-out.
4. Infrastructure and Workforce Questions
Generating multiple gigawatts of power, then building hyperscale data-centers, requires massive physical infrastructure, skilled labor, fiber-optic network density, cooling-water capacity and supply chains. Observers note that despite the land and feedstock, the actual foundation is still thin.
5. Public Skepticism
Local forums, Reddit threads and media commentaries reflect unrest. Many people call the project hype, pointing out that similar mega-projects often lag or fail. One Reddit commenter wrote: “It’s essentially an idea at this point.”
Inside the Hurdles: Why It’s Slowing
Despite Kevin O’Leary’s grand vision for an AI data hub in Alberta, the project is running into serious roadblocks.
- Indigenous consultation: The Sturgeon Lake community insists its treaty rights were bypassed. Without meaningful engagement and consent, regulatory approvals may stall or lawsuits may follow.
- Regulatory route: Power-generation licenses, land rezoning, water-use permits, environmental assessments and site-infrastructure approvals all remain in early stages. For example, the municipal site page lists the project as proposed with an estimated cost of C$12 billion for Phase 1 — far from full build-out.
- Infrastructure scale & timing: Building 1.4 GW of off-grid power and then multiple data-center buildings is not trivial. O’Leary said turbines would be running in 24 months, but such timelines are optimistic given the remote location and scale.
- Energy-environment mismatch: Alberta’s drive to exploit gas for data-centers seems at odds with Canada’s net-zero commitments. Analysts warn that building new gas-fired infrastructure could double emissions in the province.
- Investor vs air-castle risk: A C$70 billion figure sounds bold — but until capital is committed, engineering contracts signed, construction underway, and power generation delivered, it remains a billboard number. Multiple analysts say the lifetime cost tag obfuscates that only a small portion is committed today.
The Bigger Picture: What This Means for Alberta & Data-Centers
For Alberta, the project reflects the ambition of a province seeking to pivot from fossil fuels to technology-driven growth.
The government’s broader AI-Data-Centre Strategy aims for C$100 billion in data-center investment over five years. If completed, Wonder Valley would make Alberta a global AI-compute hub, driving job creation and tech ecosystem growth.
But the trajectory also shows how megaprojects can become vehicles of rhetoric rather than concrete deliverables. The contrast between slogans and execution gaps warns of reputational risk.
On a global level, data-center projects are increasingly scrutinized for energy use, cooling demands, water consumption and local engagement. Alberta’s cold climate and available land make it attractive, but the business case still must pass viability tests.
The question is: can you attract hyperscaler tenants, deliver sub-$/KW power, and sustain the ecosystem?
For Mr. Wonderful, the project offers brand leverage beyond his TV persona but only if his name goes on something real. Without actual bricks and servers, the venture remains a promise. And promises, critics point out, are cheap.
Looking Ahead: What To Watch
As the dust settles around Kevin O’Leary’s $70 billion Wonder Valley promise, the world is still waiting to see whether it can move from headlines to hardware. For now, the project sits at a crossroads suspended between potential and paralysis.
Triggers for Proof
The first real proof of life will come when Wonder Valley lands a major data-center lease with a global tech hyperscaler, a partnership with a company like Google, Microsoft, or Amazon that would instantly validate the site’s potential. Until that happens, the concept remains speculative.
Wild-cards
Even if the foundational pieces begin falling into place, O’Leary’s Wonder Valley remains vulnerable to a mix of unpredictable forces. The AI boom that inspired it could either supercharge demand or hit a correction. Should energy prices or cooling costs spike, the economics of large-scale AI infrastructure might suddenly flip from opportunity to liability.
The Wonder Valley Waiting Game
The project has become a flagship announcement with ambitious headlines but minimal follow-through. Ultimately, leaving Alberta with media exposure but few tangible outcomes. Still, optimism lingers among some observers who believe the groundwork could soon turn into real development.
Thus, the positive side is that the first phase advances, anchor tenants sign up, and construction begins in the next 18–24 months. Thus, the region becomes home to a multi-GW data-center campus. Only then can the dream of $70 billion become more than a headline.
