"Massive amounts of stranded gas" — Shark Tank investor Kevin O'Leary on choosing Canada for the AI Data Center

In a recent interview on News Nation, Shark Tank investor Kevin O’Leary explained his decision to choose Canada for one of the world’s largest AI data centers. O'Leary highlighted that certain regions have massive amounts of stranded gas, which makes them ideal locations for power-intensive projects like data centers.

The clip from the same interview was uploaded on O'Leary's Instagram on January 25. When the interviewer asked,

"The Trump administration says that AI revolution, data center revolution is happening here. You’ve chosen Canada to have it occur in. So who wins? The US or Canada?"

"There's not enough power anywhere...So the only places you can do that right now, and I've got projects in all these locations, West Virginia, North Dakota, and Alberta, Canada. Why? Because they have massive amounts of stranded gas," O'Leary replied.

The Shark Tank investor also pointed out that the lack of available power on the U.S. grid and the extended timeline for nuclear power make these regions critical for the development of such projects.

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Shark Tank's Kevin O'Leary on the strategic choice of Alberta for AI Data Centers

The challenge of powering Data Centers

In the interview, which took place on January 25, 2025, O'Leary addressed a significant issue facing the growth of AI data centers: the power shortage. He explained that data centers require a gigawatt of power at a minimum, but current grids are unable to support this demand.

"That's the problem. There's no power left on the grid," O'Leary underscored, emphasizing that data centers cannot operate without a reliable and substantial power source.

The Shark Tank investor also highlighted the long timeline for alternative power solutions, such as nuclear energy, saying,

"So you have to actually build a turbine gas powered because nuclear power is 19 years away."

This creates an immediate gap in energy supply for industries like AI that depend on massive computing power and the corresponding electricity demand.

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Why Alberta, Canada?

Among the limited viable locations for such data centers, O'Leary mentioned West Virginia, North Dakota, and Alberta, Canada as the top options. These areas are particularly attractive due to their "massive amounts of stranded gas," which O'Leary noted is not being fully utilized for energy production.

The concept of stranded gas refers to natural gas reserves that cannot be easily transported to markets or utilized for power generation due to their location. He said,

"It's a very friendly place, and there's obviously a relationship going on between Alberta, Doug Bergham, and Trump regarding the pipeline."

The Shark Tank investor's choice of Alberta aligns with the region’s existing infrastructure and energy resources. Alberta is known for its vast oil and gas reserves, making it a suitable candidate for powering large-scale industrial projects like AI data centers.

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O'Leary's $70 Billion AI Data Center project in Alberta

In the same interview, O'Leary discussed his partnership with Frank McCourt to launch a $70 billion AI data center project in Grand Prairie, Alberta. O'Leary confirmed that this project would be the largest data center on Earth, powered by the low-cost energy available in Alberta, saying,

"So Frank McCord and I announced that $70 billion project. We're going to do it up in Grand Prairie, Alberta, the largest data center on earth at the lowest cost of energy."

The location’s proximity to stranded gas reserves will allow for the development of a turbine gas-powered energy solution, enabling the facility to meet its high energy demands without relying on strained grid systems.

The Shark Tank investor further emphasized the project's economic potential, stating that the low cost of energy in Alberta would be a significant draw for tenants. He expressed confidence in the success of the project, stating,

"I think we're not going to have a hard time getting tenants at all."

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