Keel’s 96 MW Sherbrooke data centre has set a 2028 ready-for-service target, aligning with long-lead power and construction timelines for high-density AI racks.
A proposed 96-megawatt data centre in Sherbrooke could be ready for service as early as 2028, as Keel Infrastructure seeks to repurpose electricity currently allocated to three Bitcoin-mining sites for high-performance computing (HPC) and artificial intelligence.
In its latest quarterly filing, Keel confirmed it received approval from the City of Sherbrooke on July 15 to enter into an agreement with Hydro-Sherbrooke for the transfer and operation of 96 MW of existing capacity. Rather than requesting additional power, the company plans to consolidate electricity from its three current Bitcoin-mining operations into a single 96-MW campus in Sherbrooke. Keel also secured local approval to reclassify the 96 MW allocation from cryptocurrency mining to HPC and AI applications. This reclassification remains subject to review and final approval by Quebec’s Ministry of Economy, Innovation and Energy. As the successor issuer to Bitfarms, Keel is actively shifting its broader corporate strategy away from Bitcoin mining toward digital infrastructure engineered for HPC and AI workloads.
To support the initiative, Keel has entered into an agreement to purchase land for the proposed data centre. The filing describes the property as located approximately 100 miles east of Montreal. The transaction remains contingent upon site inspections, feasibility analyses, and municipal approvals, with closing expected during the first quarter of 2027. The company has not disclosed the purchase price in documents reviewed by The Pulse.
An August investor presentation outlines further details regarding the project’s timeline. Keel lists Sherbrooke as a 96-MW facility supplied by Hydro-Sherbrooke, noting that its power supply is secured while the property size remains listed as “TBD.” According to the presentation, Keel expects to take the project to market in 2027, with 2028 designated as the earliest ready-for-service date. The company cautions that this timeline is not guaranteed, citing permitting, regulatory approvals, site development, and other variables that could impact delivery. Additionally, the presentation notes that the Sherbrooke project’s 96 MW does not include an additional 74 MW of secured capacity at other sites across Quebec.
The proposed conversion occurs as electricity sales to cryptocurrency customers continue to generate significant revenue for Sherbrooke. The City’s 2026 budget projects $14.282 million in profit from electricity sales to cryptocurrency customers, representing a 22.57 per cent decrease from the $18.446 million projected in the 2025 budget. The budget does not specify how much of that cryptocurrency-related profit originates from the three sites whose power Keel intends to consolidate.
On a broader scale, Hydro-Sherbrooke’s electricity network is budgeted to generate $287.446 million in electricity sales in 2026, an increase of 0.89 per cent from the previous budget. The utility anticipates spending $208.232 million purchasing electricity, yielding a gross margin of $79.214 million. After accounting for operating expenses, other revenues, and fixed charges, Hydro-Sherbrooke’s net contribution to municipal activities is budgeted at approximately $30.746 million, up from $21.604 million in the 2025 budget. The reviewed documents do not clarify what financial impact, if any, converting the 96 MW from cryptocurrency mining to HPC and AI use would have on Hydro-Sherbrooke or the City’s electricity revenues.
Provincial review of the proposed change in electricity use remains a critical next step for the Sherbrooke project. With the land transaction still conditional and the timeline dependent on navigating subsequent development and approval stages, Keel maintains its expectation to begin marketing the Sherbrooke capacity in 2027, targeting 2028 as the earliest potential ready-for-service date.