(Image Credit: Data Center Map/Screenshot)

By rdnewsNOW staff

Major Milestone

Construction accelerates at AI data centre near Red Deer

Jan 26, 2026 | 2:08 PM

Companies involved in a new AI data centre in Red Deer County announced a major milestone on Monday.

Havenz Smart Communities, in partnership with Energy Haven and Indigenous equity partner Turning Stone, announced that the first set of hydrogen-ready reciprocating engines had arrived and that full construction is now underway at the project site.

This marks a pivotal step, according to a media release, in the development of the AHI Hub of Innovation.

“This is a gratifying moment for our project team. The first power module remains on track to be commissioned in the third quarter of 2026, ensuring the availability of power aligns with early demand by our tenants”, says Sunny Sarpal, CEO of the AHI Hub of Innovation.

The centre is designed to be a large-scale AI and industrial innovation campus, designed to deliver megawatts of on-site generation.

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According to the provincial government, the centre was approved by Red Deer County to be constructed in the 120-acre site at Blindman Industrial Park, north of Red Deer.

With its own heat and power plant, the site will include a nearly 10,800-square-foot modular data centre and a 5,000-square-foot administration building. Construction is expected to be completed in 2026.

The Tier-1 hydrogen-ready reciprocating engines are being installed at the site as aligned in the construction plan.

Officials say similar power systems are being deployed worldwide in data centres, hospitals, and industrial settings. They provide the reliability and flexibility required for AI computing.

 “The unique distributed power architecture of our project will enable expansion in a planned, modular way, which means generating capacity can be scaled directly to demand from customers”, stated Sarpal.

With the power-generating equipment delivered, construction of the first power block is now fully underway, including the building foundations, mechanical and electrical work, and supporting infrastructure. Future phases of the project will further expand on‑site power generation, energy storage, and grid‑interface capabilities, creating a scalable platform for both “behind‑the‑meter” users as well as export opportunities.

“The phased, modular approach we are using supports rapid scaling, long‑term tenancy, and institutional investment without the delays associated with traditional grid‑dependent developments,” he added.

Once construction is complete, the Hub of Innovation will be positioned to attract billions in private investment in large‑scale power assets, digital infrastructure, and tenant‑driven capital projects.

It is also expected to bring economic benefits to the Red Deer region, such as construction jobs, long‑term operations roles, Indigenous and regional supply‑chain participation, as well as additional tax revenues for municipal and provincial governments.

“This is a powerful and dynamic economic hub for our province. By providing power‑secure, execution‑ready infrastructure, we are further strengthening Alberta’s ability to retain global AI and industrial investment.”