Pembina Acquires Stake in Alberta Electricity, Data Center Project

Pembina Pipeline Corporation has entered into agreements for a 50 percent interest in Greenlight Electricity Centre Limited Partnership (Greenlight LP), which is developing an electricity and data center complex in Alberta.

The Greenlight Electricity Centre (GLEC) is a proposed multi-phase gas-fired combined cycle power generation facility of up to 1,800 megawatts (MW) with carbon capture optionality coupled with significant land holdings that can accommodate a co-located 1,800-MW data center complex.

Pembina is with Kineticor Holdings LP #3, a portfolio company of investment manager OPTrust.

The project is planned to be constructed on land already zoned for heavy industrial use and strategically located near transmission lines, utility infrastructure, carbon sequestration, and fiber in Alberta's Industrial Heartland, according to a news release from Kineticor Asset Management LP.

The GLEC is managed by Kineticor, which successfully developed, constructed, and currently operates the 900-MW Cascade Power Plant near Edson, Alberta, the partnership said.

The facility will be developed in modular phases of approximately 450 MW each to scale with market demand, up to a maximum initial nameplate design of 1,800 MW. The power generation facility is currently in stage 3 of the Alberta Electric System Operator (AESO) interconnection process, and is progressing through permitting, design, and contracting. GLEC has the optionality to supply power to a co-located data center or feed directly into Alberta's power grid to support data center loads across the province, according to the release.

The project is targeting grid interconnection in early 2027. Greenlight is actively engaging with customers regarding locating their data centers on GLEC lands and/or procuring long-term power offtake from the project, the release said.

"We are excited to be partnering with Kineticor and for the opportunity to further extend our value chain to provide power to a promising new Alberta-based data centre industry," Stu Taylor, Pembina Senior Vice President and Corporate Development Officer, said. "In addition to our direct investment in Greenlight, Pembina is well positioned to leverage its existing and future asset base to further support the project. The proximity of our Alliance Pipeline offers a potential opportunity to provide natural gas supply to the GLEC, and the potential future development of the Alberta Carbon Grid may provide a future emissions reduction solution”.

 "We are thrilled to partner with Pembina on this transformative project," Kineticor CEO Andrew Plaunt said. "Alberta's Industrial Heartland is one of the best locations in the province to facilitate a project of this magnitude given the large land base, robust grid infrastructure, and potential for decarbonization solutions over time. By partnering with Pembina, we can leverage and combine our individual strengths and experience in major infrastructure projects to bring all the pieces together to develop a world class facility”.

Alberta’s government has set a target of attracting $100 billion in data center investments by 2030, encouraging developers to "bring their own power,” according to the release.

Kineticor Asset Management describes itself as a developer, manager, and operator of power generation facilities within Alberta with a portfolio exceeding 2,700 MW in various stages of development & operations.

OPTrust invests and manages one of Canada's largest pension funds on behalf of over 111,000 members.

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