US Developer Tied to Failed Bitcoin Venture Proposes Major Alberta Data Centre

A little-known US-based developer tied to a failed bitcoin business and a fraudulent-transfer lawsuit is quietly advancing Alberta’s latest gas-fired AI data centre proposal. The 466MW Black Bear Power Project (BBPP), located near Swan Hills northwest of Edmonton, has received minimal media attention despite significant changes in its ownership and environmental commitments.

The project was initially proposed by Calgary-based Kiwetinohk Energy with a commitment to carbon capture and storage. However, after being acquired by another company, the new proponent has abandoned these climate pledges, raising questions about regulatory oversight and the true cost of AI infrastructure.

Regulatory Oversight in Question

The backstory of BBPP raises troubling questions about Alberta’s regulatory environment and its approach to AI data centres. When approved by the Impact Assessment Agency of Canada (IAAC) in 2024, Kiwetinohk Energy committed to capturing carbon dioxide from the 460-megawatt gas plant and storing it underground to comply with federal Clean Electricity Regulations set to take effect in 2035.

Kiwetinohk assured regulators, "To ensure compliance with the proposed federal Clean Electricity Regulations, which will strictly limit greenhouse gas emissions from natural gas-fired power generation facilities starting in 2035, Kiwetinohk has designed the BBPP to accommodate carbon capture equipment and facilities."

However, after being acquired by an unnamed company in 2025, these commitments were quietly abandoned. The new proponent, Teton Digital, is now pushing forward with a project that could release one million tonnes of annual emissions into the atmosphere for decades to come.

This shift highlights the lack of transparency and accountability in Alberta’s regulatory framework. How did a billion-dollar gas-generation project change hands without public scrutiny, and why were climate commitments so easily discarded? These questions are particularly relevant given Prime Minister Mark Carney’s memorandum of understanding with Alberta, which has facilitated the rapid development of AI data centres by relaxing federal clean energy regulations.

Investment Implications

For investors, the BBPP raises significant concerns about both financial risk and environmental impact. The project's association with a developer linked to a failed bitcoin venture and legal troubles adds an additional layer of uncertainty. Investors must carefully assess the regulatory environment and the long-term sustainability of such projects.

The environmental implications are also critical. One million tonnes of annual emissions from a single data centre is a significant contribution to Alberta’s carbon footprint, especially in a region already grappling with climate-related challenges like wildfires and extreme weather events. This raises questions about the true cost of AI infrastructure and whether the economic benefits outweigh the environmental risks.

The project's ability to proceed without adhering to previous carbon capture commitments suggests a regulatory environment that may not adequately protect public interests. Investors should be wary of projects that lack robust environmental safeguards and transparent oversight.

While AI data centres offer potential economic opportunities, the BBPP serves as a cautionary tale about the importance of stringent regulatory frameworks and environmental stewardship. Investors must weigh the risks and rewards carefully to ensure their investments align with both financial goals and broader sustainability objectives.