Dutch food logistics and cold storage leader NewCold is investing $222-million into a new facility in Coaldale, Alta. Once built, it will span 320,000 square feet.Supplied/Office of the Mayor, Town of Coaldale
Tucked between sunflower fields and prairie skies, the town of Coaldale, Alta., has long been known for its agricultural charm, family-run businesses and community hockey nights. But soon, it’ll also be known for something else: a state-of-the-art cold storage facility that’s reshaping Canada’s food logistics landscape.
Netherlands-based company NewCold is investing $222-million to build a fully automated, energy-efficient temperature-controlled warehouse in Coaldale – one that stands 150 feet tall, spans 320,000 square feet and promises to bring new jobs, infrastructure and a global profile to this quiet community of fewer than 10,000 residents.
“NewCold’s investment is a game-changer, placing us on the global map for agri-logistics innovation,” says Mayor Jack Van Rijn. He describes the facility as “one of the most advanced and visually-striking structures in southern Alberta” – and a bold signal of Coaldale’s evolving role in the national supply chain.
And it’s not just about the scale or design – the economic impact is already being felt.
The construction created about 200 jobs, and once open in June, the warehouse will add 50 to 60 high-tech, permanent positions, he says. These roles include overseeing operations as the facility uses proprietary automated systems that “use 50 per cent less energy than traditional cold storage systems.”
Why cold storage is suddenly a hot commodity
The Coaldale cold storage centre is automated, energy-efficient and can store up to 56,000 pallets of frozen food. Its automated storage and retrieval systems can retrieve or load a pallet in just six minutes from any location in the facility.Supplied/Office of the Mayor, Town of Coaldale
According to a 2025 PwC report on Canadian real estate trends, investing in niche commercial markets such as cold storage is still seen as a relatively safe bet in a volatile economy. The cold storage industry generated just over US$13-billion in Canada in 2024 and is set to increase to US$17-billion by 2030, according to market research.
The demand stems from the increase in e-commerce related to meal-kit services and online food shopping, as well as a growing need for temperature-sensitive storage for pharmaceuticals and other biomedical materials.
Due to the forecast demand, “investors are recognizing the potential for cold storage assets to deliver stable returns and are actively seeking opportunities in Canada,” says Fred Cassano, partner, national real estate leader at PwC Canada.
However, the current state of the world economy and see-sawing of tariff decisions by U.S. President Donald Trump may dampen the enthusiasm.
The cost and scale of these projects could be heavily affected by rising material prices. “The imposition of new tariffs could lead to higher costs for imported materials and equipment to build facilities, with the resulting impacts on costs, profitability and operational efficiency,” says Mr. Cassano.
On the other hand, Canadian businesses importing produce from the U.S. or using American cold storage supply chain solutions could seek alternative markets, which would also affect the industry. “[This could] potentially give Canadian facilities a competitive edge if they adapt more quickly than their U.S. counterparts,” he says.
New rail links could supercharge Alberta exports
NewCold is bringing more than jobs and automated cold storage to Coaldale. It’s also investing in the long-term logistics of transporting fresh and frozen food in southern Alberta. This is one outcome of the interest in investment, says Mr. Cassano. “The cold storage trend also reflects the growing convergence between real estate and infrastructure as companies look to play their part in supporting e-commerce growth and meeting the logistical needs of a changing economy,” he says.
According to Alberta Farmer Express, part of NewCold’s investment will go toward building a 2.6-kilometre branch line that connects the facility with the 32,000-kilometre Canadian Pacific Kansas City railway (CPKC) – the only single-line rail network that spans Canada, the U.S. and Mexico. “This [investment] will provide Alberta food producers with streamlined access to export markets, improving supply chain efficiency and helping them grow their business at home and abroad,” says Michael Keeler, site manager of the NewCold Coaldale facility.
CPKC is partnering with another leader in cold-storage logistics. In January, U.S.-based company Americold announced a US$79-million investment in a first-of-its-kind cold storage facility along the Saint John, N.B., waterfront. It’s a unique partnership with the railway and DP World – a multinational, Dubai-based maritime logistics company – and the first in the world to combine marine and rail importing and exporting with cold storage solutions.
High-tech freezer is built to fight food waste
The state-of-the-art Coaldale facility has the capacity to store up to 56,000 pallets of frozen food. “It will be equipped with NewCold’s proprietary automated storage and retrieval systems (ASRS), capable of retrieving or loading a pallet in just six minutes from any location within the facility [without humans],” says Mr. Van Rijn.
Sustainability is integrated into every aspect of NewCold’s operations, says Mr. Keeler. “The energy-efficient model is designed to dramatically reduce energy use compared to conventional cold storage through a combination of vertical design, automation and advanced insulation,” he says. “By consolidating storage and distribution in one high-performance location, the facility also helps reduce food waste, streamline transportation and support more sustainable growth for Alberta’s food producers.”
Mr. Van Rijn doesn’t underestimate the importance of such a large and wide-reaching investment in the town he loves.
“With its cutting-edge technology and commitment to sustainability, NewCold’s presence in Coaldale reinforces our position at the heart of Canada’s premier food corridor,” he says. “We’re proud to support a project that not only strengthens our local economy but also sets a new benchmark for innovation in the food logistics industry.”