Pembina Pipeline Corp., along with Morgan Stanley Infrastructure Partners and Kineticor Asset Management, have approved the development of the Greenlight Electricity Centre, a natural gas facility designed to cater to a data center client. The project is estimated to cost $4.6 billion and will involve constructing a 932-megawatt plant in Sturgeon County, situated within Alberta’s Industrial Heartland area to the north of Edmonton, with operations expected to commence in the latter half of 2030. The trio of companies holds permits that could facilitate doubling the plant’s capacity in the future.
Data centers house essential computer hardware for various technological applications, with their demand surging alongside advancements in artificial intelligence and cloud computing. While the specific identity of the data center client remains undisclosed by the province and the companies involved.
Alberta has actively sought to attract major hyperscale developers like Meta and Google to establish operations in the province. However, due to the current strain on the electricity grid, Alberta is prioritizing projects that either construct or contract their own power generation capabilities.
Premier Danielle Smith highlighted the significance of projects like the Greenlight Electricity Centre during a recent press briefing, emphasizing the benefits of data centers bringing their power generation and contributing to related infrastructure costs, ultimately resulting in reduced transmission expenses for Alberta consumers.
The successful realization of such an investment was made possible following a comprehensive energy agreement signed in November between the governments of Ottawa and Alberta. This agreement included the suspension of federal clean electricity regulations, a move that Alberta believes will enhance its energy sector by attracting more investments and fostering economic growth.
Scott Burrows, CEO of Pembina, commended Alberta’s efforts in creating an environment conducive to projects like Greenlight. He expressed pride in being at the forefront of meeting Alberta’s significant power requirements for data centers and helping establish the necessary infrastructure to support the burgeoning industry.
Notwithstanding, some communities in Canada and the United States have raised concerns over pollution and noise stemming from data center developments incorporating gas plant components. Premier Smith assured that the Greenlight project would be situated in an industrial-friendly zone where such developments have been well-received for many years.
Critics, including the Pembina Institute, a clean energy-focused organization independent of the energy sector, view the Greenlight Energy Centre as a missed opportunity to leverage more cost-effective renewable energy sources as the expenses associated with gas-fired power escalate. The group’s electricity program director, David Pickup, criticized Alberta’s current data center regulations for favoring gas-fired power and excluding other renewable energy options, highlighting the potential benefits of integrating diverse energy sources to mitigate environmental impacts and costs associated with gas-powered projects.