AVAX One Plans 10 MW AI Data Center in Alberta
AVAX One Technology Ltd. signed a letter of intent to build powered land for a 10 megawatt artificial intelligence and high-performance computing facility near Calgary, Alberta. The company expects to finalize a definitive agreement within 30 days and have the site operational by Q1 2027.
The $30-$35 million project addresses a core constraint in AI infrastructure: reliable power. AVAX One will partner with BlueFlare Energy Solutions, an Alberta-based developer, to design and build the facility on brownfield sites with existing natural gas generation assets.
How the Power System Works
The facility will rely primarily on on-site natural gas generation rather than grid power. This approach shields the operation from price fluctuations and grid curtailments during peak demand-common problems for data centers dependent on public utilities.
The design includes redundant systems: battery energy storage for ride-through capacity, diesel backup generators, and optional grid interconnection through Alberta's AESO system. The facility will target Uptime Institute Tier 3 certification, a standard for concurrent maintainability and redundant infrastructure.
At least 7 MW of the 10 MW total will be mission-critical power available for client workloads.
The Business Model
AVAX One plans to contract the completed facility to an end-client under a long-term infrastructure agreement. The company expects this arrangement to generate recurring revenue with high margins.
The modular design-built in 10 MW increments-creates a blueprint for future deployments across Alberta and potentially elsewhere in North America. This scalability is central to AVAX One's strategy for expanding into data center infrastructure.
Payments to BlueFlare tie to construction milestones: site selection, permitting, design, procurement, construction, and final commissioning.
Why Alberta
Alberta offers structural advantages for this type of project. Natural gas costs are low, brownfield sites with existing generation assets reduce permitting timelines, and regulatory conditions favor deployment. The region's AESO grid also provides interconnection options.
AVAX One CEO Jolie Kahn said the expansion reflects the company's shift toward owning both digital and physical infrastructure. The company previously focused on accumulating Avalanche (AVAX) tokens and earning on-chain yield.
Learn more about AI for IT & Development to understand how infrastructure like this supports modern computing workloads.
What Comes Next
The letter of intent requires execution of a definitive agreement within 30 days. BlueFlare will manage site identification, engineering, permitting, procurement, and construction.
The facility will occupy land within 50 miles of Calgary. The company prioritizes brownfield sites to accelerate development and reduce regulatory risk.
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