Pembina Pipeline Corp., along with partners Morgan Stanley Infrastructure Partners and Kineticor Asset Management, has approved the construction of the Greenlight Electricity Centre, a natural gas facility designed to supply power to a data center client. The total expenditure for the venture is estimated at $4.6 billion. The plant, with a capacity of 932 megawatts, is slated for construction in Sturgeon County, situated in Alberta’s Industrial Heartland region to the north of Edmonton, with the anticipated start-up scheduled for the latter part of 2030. The consortium holds permits that would enable them to potentially double the plant’s capacity in the future.
Data centers play a crucial role in supporting various technological applications by housing the necessary computer hardware. The demand for data centers has surged alongside advancements in artificial intelligence and cloud computing technologies. Although the specific identity of the data center client has not been disclosed by the province or the participating companies, the project signifies a strategic move to cater to the growing needs of such facilities.
Alberta has been actively pursuing major hyperscale developers like Meta and Google to establish operations in the region. However, the current electricity infrastructure in Alberta lacks the capacity to support multiple large-scale projects simultaneously. Therefore, the province is prioritizing initiatives that involve self-sufficient power generation or contracting for electricity supply.
Premier Danielle Smith highlighted the Greenlight Electricity Centre as a prime example of this strategy during a recent press briefing. She emphasized that by encouraging data centers to invest in their own power generation infrastructure, the province aims to reduce transmission costs on utility bills for Albertans.
Scott Burrows, CEO of Pembina, acknowledged Alberta’s efforts in creating a conducive environment for projects like the Greenlight initiative to progress. He stated that Alberta’s focus on enhancing competitiveness, attracting investments, and fostering energy development has positioned the province as an attractive hub for diverse industries and sustained growth.
Addressing concerns raised by some communities regarding potential pollution and noise associated with data center developments, particularly those involving gas plants, Premier Smith reassured that the Greenlight project will be located in an area where industrial activities have long been accepted by local residents.
The Pembina Institute, an independent clean-energy think tank, expressed disappointment that the Greenlight Energy Centre opted for gas-fired power instead of exploring more cost-effective renewable energy sources. David Pickup, who heads the institute’s electricity program, noted that while a project like Greenlight may not have been exclusively powered by renewables, a diversified energy mix could have mitigated environmental impacts and operational costs linked to gas-fired power generation.
