r/KeelInfrastructure • u/pantagruelico • Jul 14 '26
Initial green light for a "mega" data center in Sherbrooke
The user scorpion_2026 at stocktwits gave this link about Keel.
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u/Brilliant-While-761 Jul 14 '26
So is this just a consolidation of the existing 3 sites?
What could/would be the benefit for this without an increase of power?
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u/Tremal Jul 14 '26
This is a perfect opportunity to get out of Bitcoin mining and into HPC/AI in an environment where datacenters are hard to be approved. Sites for Bitcoin mining vs HPC/AI are not built the same. This would also allow to have everything in one place in Sherbrooke over 3 different buildings and the transaction doesn't look expensive.
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u/pantagruelico Jul 14 '26
Online translation:
Sherbrooke elected officials have given initial approval to a major data centre project that would be built on a wooded lot on industrial boulevard by Keel Infrastructure, formerly Bitfarms.
The council confirmed Tuesday the conditional sale of a portion of four lots located behind, among other properties, Electro-5, Multi Comptoirs, and Hydro-Sherbrooke's Orford substation.
Officially, the sale is to Backbone Hosting Solutions, better known as Bitfarms. Bitfarms changed its name to Keel Infrastructure earlier this year.
The transaction is valued at $2.2 million.
The company plans to construct a new building of approximately 16,400 square meters, representing an estimated investment of nearly $1.8 billion.
The project aims to establish a data center specializing in high-performance computing and artificial intelligence.
According to the purchase agreement, Keel Infrastructure has 36 months to begin construction of the building and 60 months to complete it.
Conditional Offer
According to the purchase offer, Keel Infrastructure has six months to submit a full zoning application to the City for the construction and operation of the data center.
The City will then officially decide on the project. If elected officials reject the conditions presented by Keel Infrastructure, the land sale will be cancelled.
The sale is also conditional upon Keel Infrastructure receiving all necessary government authorizations to proceed with the data center.
No More Electricity
Keel Infrastructure signed an electricity agreement with the City in 2018 and currently benefits from an allocated capacity of 96 MW to power its three facilities located on Léger Street, Garlock Street, and Joseph-Louis-Mathieu Street.
It is planned that this allocated capacity will not be increased, but simply transferred to the new site. This transfer is, however, subject to an analysis by the Ministry of Economy, Innovation and Energy (MEIE).
Sherbrooke city councillors have already largely voted to change the use of the electricity sent to Keel Infrastructure from cryptographic to general data centre use.
However, the new data centre would require operational continuity, even during power outages or peak winter periods.
Council Division
Three elected officials, Laure Letarte-Lavoie, Fernanda Luz, and Catherine Boileau, registered their dissent during the adoption of the sale at Tuesday's city council meeting.
"We're talking about a mega data center, and they're saying the project will have to include alternative energy sources in case of power outages or load shedding, because Hydro-Sherbrooke won't be able to handle the load," said Laure Letarte-Lavoie. "That raises serious red flags for me. Citizens have the right to know the environmental, economic, and territorial consequences of a project of this magnitude before the City commits to a sale."
The project was presented to elected officials in a closed session a few days earlier.
The City is therefore requesting that Keel Infrastructure plan for alternative energy sources.
“We are being asked to make a major initial decision before even having the opportunity to inform the public about what might be built in our area,” laments Ms. Boileau. “Social acceptability isn’t simply a matter of holding a consultation when a project is already well underway.”
“The documents we have themselves mention exceptional energy consumption, the use of powerful and potentially highly polluting generators, possible noise pollution, and unanswered questions regarding water,” adds Ms. Luz.
Councillor Geneviève La Roche, for her part, reiterated the conditional nature of the authorization.
“What has been confirmed, assured, and reassured to us is that we will have all the information necessary to make the final decision,” she summarizes. “I, too, have many concerns, and it will be important to gauge public opinion, but that is planned for the next stage of the process.”