Keel Infrastructure Corp. has secured a series of approvals to advance its Sherbrooke, Quebec, data center project toward construction.
The City of Sherbrooke has authorized the North American digital infrastructure and energy company to enter into an agreement with Hydro Sherbrooke to transfer and operate 96 megawatts of existing capacity, along with an agreement to purchase the land on which the campus will be built.
The power agreement will allow Kiel to consolidate three current Bitcoin mines in the state into a single 96MW campus. The company requested no additional power, a choice that maintains the use of current power infrastructure and aligns the project with Quebec’s energy priorities.
Kiel has secured approval to reclassify 96MW from Bitcoin mining to high performance computing and artificial intelligence, a workload class that is attracting funding across the sector.
A broader pivot from Bitcoin to AI
This shift reflects broader changes. Public miners across the industry are increasingly repurposing energy-powered sites for computing, a trend seen in deals like CleanSpark’s $6.6 billion data center lease and the company’s own decision to exit Bitcoin mining in favor of AI.
Investors reward operators for managing electricity and construction sites, but the transition comes with risks. VanEck warned that miners pursuing AI infrastructure face a $50 billion funding gap as money flows to companies with the capabilities.
Sherbrooke’s history dates back to the company’s use of the state’s low-cost hydroelectric power to build mining farms within the city. Rather than integrating new demand into the grid, Kiel plans to fold its footprint into a single campus.
There are two remaining conditions. Transferring energy capacity to a new site requires review and approval by Quebec’s Ministry of Economy, Innovation and Energy. The purchase of the land, located approximately 160 miles east of Montreal, is subject to customary conditions, including a site survey, feasibility analysis and municipal approvals. Mr. Kiel expects the transaction to close in the first quarter of 2027.
“These developments mark an important step forward in the development of our Sherbrooke project, which will be one of Quebec’s largest data center projects,” said Philippe Fortier, Keel’s executive vice president of corporate development. “The city’s approval of these agreements reflects the strength of the project and our commitment to the Sherbrooke community.”
Fortier added that the company has been operating in Quebec since its inception and sees this project as a long-term commitment to the local and regional economy. Keele aims to build a campus based on lasting relationships with its host community.
This post on Keel infrastructure that integrates three Bitcoin sites into one AI campus first appeared in Bitcoin Magazine and was written by Micah Zimmerman.
