Pembina Pipeline Corp., along with Morgan Stanley Infrastructure Partners and Kineticor Asset Management, have approved the establishment of the Greenlight Electricity Centre, a natural gas facility dedicated to servicing a data center client. The total project cost is estimated at $4.6 billion, with plans for a 932-megawatt plant to be constructed in Sturgeon County, situated within Alberta’s Industrial Heartland region to the north of Edmonton. The anticipated launch is set for the latter part of 2030, with provisions in place for potential future capacity expansion.
Data centers play a crucial role in supporting various technological applications, particularly with the rise in artificial intelligence and cloud computing. While the specific identity of the data center client has not been disclosed by the province or the companies involved, Alberta has been actively seeking to attract major hyperscale developers like Meta and Google to establish operations within the region. Due to current grid limitations in accommodating multiple large projects, Alberta is prioritizing initiatives that incorporate self-generated or contracted power solutions.
Premier Danielle Smith highlighted the Greenlight Electricity Centre as a prime illustration of this strategy during a recent press briefing. The approach of having data centers develop their own power generation infrastructure is aimed at reducing transmission costs on utility bills in Alberta. Smith underscored the significance of a comprehensive energy agreement signed between Ottawa and Alberta in November, which suspended federal regulations on clean electricity standards. This agreement was seen as crucial in fostering increased oil and gas production, attracting substantial investment, and promoting economic growth in the province.
Scott Burrows, CEO of Pembina, emphasized that Alberta’s favorable business environment and focus on energy development have paved the way for projects like Greenlight to advance. The commitment to meeting the substantial power requirements of data centers reflects Alberta’s proactive stance in supporting the burgeoning data center industry.
Despite concerns raised in some communities in both Canada and the United States regarding potential pollution and noise associated with data center developments, particularly those involving gas plants, Premier Smith reassured that Greenlight will be situated in an area with a history of accepting industrial activities. The Pembina Institute, an independent clean energy organization, expressed reservations about the reliance on gas-fired power for data centers, suggesting that a more diversified energy mix, including renewables, could mitigate environmental impacts and costs associated with gas-generated power.