Pembina Pipeline, together with Morgan Stanley Infrastructure Partners (MSIP) and Kineticor Asset Management, has announced a final investment decision to proceed with the Greenlight Electricity Centre, a C$4.6bn ($3.2bn) gas-fired power plant in Sturgeon County, Alberta, Canada.
The 932MW facility is set to supply electricity to a large data centre, whose developer has not been identified. The plant is expected to be operational in the second half of 2030 (H2 2030).
The Greenlight facility aims to meet growing demand for data centre power, driven by expanding AI and cloud computing.
Pembina will be responsible for approximately C$2.3bn of the project’s overall capital expenditure.
Ownership of Greenlight is split between Pembina and MSIP, each holding 47.5%, with Kineticor at 5%.
Greenlight has entered into a long-term electrical energy supply agreement to provide 932MW of capacity to the data centre on a tolling basis, generating revenue through capacity and usage-based payments.
The company stated that the tolling arrangement aligns with its fee-based business model.
Pembina anticipates the project will generate annual run-rate adjusted earnings before interest, taxes, depreciation and amortisation of around $310m, net to the company.
The plant will use Siemens Energy gas and steam turbines, with approximately 85% of capital costs secured under fixed price agreements.
A consortium comprising Aecon Group and Técnicas Reunidas will handle engineering, procurement and construction. Asset-level debt financing is expected to cover 60% of Greenlight’s costs, with the rest provided through equity contributions.
Pembina president and CEO Scott Burrows said: “Together with Kineticor, we have leveraged our advantaged position within the Canadian midstream energy industry and are proud to be the first mover in responding to the power requirements of Alberta-based data centres, all within Pembina’s proven midstream model.”
The site has permits allowing a potential future expansion to 1.86GW. It will require roughly 150 million cubic feet per day of natural gas, with transport capacity secured through existing pipeline agreements.
The project has received required regulatory approvals. Plans for additional phases and other data centre-focused power projects are being considered by the partnership, subject to future agreements and regulatory processes.
