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Kevin O'Leary, known as "Mr. Wonderful" from Shark Tank, is working on a major project: building the world's largest AI data center in northern Alberta, Canada. The facility will use the region's natural resources and infrastructure to keep costs low and operate on a large scale.
In an interview with Fox Business on December 12, 2024, O'Leary stated,
“This is going to be the lowest cost data center in the world.”
The project, named Wonder Valley, will rely heavily on Alberta’s natural gas reserves and geothermal energy to power its operations. With an estimated total investment of $70 billion, the facility will supply over seven gigawatts of power, positioning itself as a cornerstone of the global AI infrastructure landscape.
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Shark Tank star Kevin O'Leary's vision for the world's largest AI data center
Canada as the chosen location
Kevin O'Leary's decision to build the data center in northern Alberta was driven by strategic considerations, including the availability of energy resources, favorable policies, and adequate land.
In an interview with CBC News Alberta on December 11, 2024, O’Leary explained that Alberta Premier Danielle Smith offered him the permits and infrastructure necessary to begin construction.
“She has permits, she has power, she’s got the right climate,” O’Leary said.
The region's 200 trillion cubic feet of natural gas will be used to generate electricity for the facility through turbines, ensuring it meets energy needs affordably. The Municipal District of Greenview is collaborating with O'Leary Ventures to secure land and develop the necessary infrastructure for the project.
Tyler Olsen, the reeve of the district, highlighted the long-term planning that preceded the project:
“Over the past three to four years we’ve built a road into this area, we’ve acquired the land from the province, we’ve started water licensing to get the water there.”
Energy challenges and solutions
Powering a data center of this scale requires significant energy resources. The facility's projected capacity of over seven gigawatts is equivalent to lighting millions of homes.
The Shark Tank investor acknowledged in an interview with CBC News Alberta on December 11, that alternative energy solutions, such as nuclear power, were considered but ultimately deemed impractical for this project.
“Westinghouse is the most advanced on small nuclear solutions, but that’s 12 to 15 years away,” O’Leary said.
The Shark Tank investor also pointed out the high costs associated with nuclear power, noting that it could range from $58 to $61 billion per gigawatt. By contrast, the natural gas-based solution in Alberta is expected to cost approximately $1.6 billion per gigawatt.
The project's first phase, costing $2 billion, will generate 1.4 gigawatts of power. Additional power increments of one gigawatt will be rolled out in subsequent phases.
Global expansion plans
In addition to the Alberta site, O'Leary has identified potential locations for similar data centers in the United States, specifically in North Dakota and West Virginia. The Shark Tank investor emphasized the importance of natural gas availability in these regions. O’Leary highlighted the cost efficiency of natural gas compared to other energy sources.
However, O’Leary noted that securing the necessary permits and infrastructure in the United States remains a challenge. He expressed optimism about policy changes that could attract investment, stating in CBC News Alberta,
“Policy changes economic behavior. You don’t make money in politics; you make money in policy. This is the kind of thing that's going to bring capital back to the United States. They figured that up in Canada..”
The road ahead
While the Wonder Valley project is still in its early stages, it has garnered significant attention and support. Alberta Premier Danielle Smith described the initiative as "fantastic news" in a press release, emphasizing its potential to boost investment, innovation, and job creation in the region.
The Shark Tank investor himself has urged stakeholders and observers to monitor the project's progress. He told CBC News,
“We have many mountains to climb here, but we’re in a competition...We have to convince the world that Alberta’s the best place to put your data center for a lot of reasons.”
As the project unfolds, its success could set a precedent for how large-scale AI data centers are developed and powered globally, making Wonder Valley a landmark in the intersection of technology and energy innovation.
Catch the entrepreneurial action on Shark Tank! Watch Fridays at 8 PM ET on ABC, as Kevin O'Leary and other investors hear exciting pitches. Stream full episodes anytime on Hulu.
