en.Wedoany.com Reported - Pembina Pipeline Corporation, in partnership with Morgan Stanley Infrastructure Partners (MSIP) and Kineticor Asset Management, has made a final investment decision on the Greenlight Electricity Centre project in Sturgeon County, Alberta, Canada. This natural gas-fired power plant has a total investment of C$4.6 billion (US$3.2 billion) and an installed capacity of 932 megawatts.

The facility will supply power to a large-scale data center, whose developer has not yet been publicly disclosed. The plant is expected to begin operations in the second half of 2030. The project aims to address the growing electricity demand from data centers driven by the expansion of artificial intelligence and cloud computing. Under the equity arrangement, Pembina and MSIP each hold a 47.5% stake, while Kineticor holds 5%. Pembina will bear approximately C$2.3 billion in capital expenditures.

Greenlight has signed a long-term power supply agreement to provide 932 megawatts of capacity to the data center under a tolling arrangement, generating revenue through capacity and usage-related payments. Pembina stated that this model aligns with its tolling business model. The company expects the project to generate approximately US$310 million in annualized adjusted EBITDA.

The plant will utilize gas turbines and steam turbines from Siemens Energy, with approximately 85% of capital costs locked in through fixed-price contracts. A consortium comprising Aecon Group and Técnicas Reunidas is responsible for engineering, procurement, and construction. Asset-level debt financing is expected to cover 60% of the project's costs, with the remainder funded through equity. The site has received permits and can be expanded to 1.86 gigawatts in the future. The project consumes approximately 150 million cubic feet of natural gas per day, with transportation capacity secured through existing pipeline agreements.

The project has obtained all necessary regulatory approvals. The partners are considering subsequent phases and other data center-related power projects, depending on future agreements and regulatory processes. Scott Burrows, President and Chief Executive Officer of Pembina, stated that the company is leveraging its strong position in Canada's midstream energy sector to respond to the electricity demand from data centers in Alberta, and that this project aligns with its midstream business model.