Keel Infrastructure consolidates Bitcoin sites into AI campus in Quebec

Keel Infrastructure Corp. has secured key approvals to advance its data center project in Sherbrooke, Quebec, moving closer to construction. The city approved an agreement allowing Keel to transfer and operate 96 megawatts of existing capacity from Hydro-Sherbrooke, along with land purchase agreements for the new campus. This consolidation will combine three of Keel's current Bitcoin mining sites into one large facility, utilizing existing electrical infrastructure to align with Quebec's energy priorities.

The company also received approval to reclassify the 96 MW capacity from Bitcoin mining to high-performance computing and artificial intelligence workloads, reflecting a broader industry trend of repurposing mining infrastructure for AI applications. This shift is driven by the increasing demand for compute power in AI and data center sectors, with other industry players like CleanSpark making similar moves.

Keel's decision to focus on AI workloads aims to leverage its existing low-cost hydro power assets in Quebec, avoiding new power demand and supporting sustainable energy use. The project still requires review and approval from Quebec's Ministry of Economy, Innovation and Energy for the energy transfer, and the land purchase is expected to close in early 2027.

Philippe Fortier, Keel's EVP of Corporate Development, emphasized the project's significance, describing it as one of the largest data center initiatives in Quebec and highlighting the company's long-term commitment to the local economy and community.

This development indicates a strategic industry shift from traditional Bitcoin mining towards AI and high-performance computing, which could influence the future use of energy infrastructure in crypto and data sectors. The move may also impact investor interest in companies controlling large-scale compute capacity, though the broader market effect remains to be seen.