Pembina Reaches FID on $3.2 Billion Alberta Gas Power Project for Data Center
Pembina Pipeline and its partners have approved a $3.2 billion, 932-MW natural gas-fired power project in Alberta that will supply a major data center while driving new demand for Canadian natural gas.
(P&GJ) — Pembina Pipeline Corp. and its partners have reached a final investment decision (FID) on the C$4.6 billion (US$3.2 billion) Greenlight Electricity Centre, a 932-MW natural gas-fired power plant in Alberta that will provide dedicated power to a major data center development.
The project, located in Sturgeon County within Alberta's Industrial Heartland, will be developed through the Greenlight Electricity Centre Limited Partnership, owned by Pembina Pipeline, Morgan Stanley Infrastructure Partners (MSIP) and Kineticor Asset Management.
Greenlight is expected to require approximately 150 MMcf/d of natural gas and is designed to support growing electricity demand driven by artificial intelligence, cloud computing and large-scale data centers. Commercial operations are expected to begin in the second half of 2030.
The partners estimate the project will cost approximately C$4.6 billion, including financing costs. Pembina's net investment is expected to total about C$2.1 billion after proceeds from a land sale to the unnamed customer. The company expects the project to generate approximately C$310 million in annual run-rate adjusted EBITDA attributable to Pembina once operational.
Greenlight will deliver power under a long-term tolling agreement with the customer, providing revenue through capacity payments and usage-based charges.
Pembina said the project also is expected to increase demand for Canadian natural gas while supporting its existing gathering, processing, transportation and natural gas liquids businesses.
"Dedicated, contracted gas-to-power infrastructure represents a promising new growth platform, through which we are also helping to catalyze new natural gas demand that will provide additional benefits throughout our business," said Scott Burrows, Pembina's president and CEO.
The facility will utilize two Siemens Energy SGT6-8000H gas turbines in a combined-cycle configuration. Greenlight has secured fixed-price engineering, procurement and construction agreements covering roughly 85% of project costs, according to the company.
Pembina said sufficient long-term natural gas transportation capacity has already been secured through the proposed Alliance Heartland Expansion Project, the TC Energy NGTL system and other commercial arrangements to supply the plant. The company expects to file regulatory applications for the Alliance expansion with the Canada Energy Regulator in August 2026.
The partners said the Greenlight project could serve as the first phase of a broader gas-to-power platform supporting future Alberta data center developments, including a potential expansion that could double generating capacity to 1,864 MW.
"Reliable, dispatchable power is the foundation of the AI and cloud economy, and Greenlight will deliver it at scale to one of Canada's most important new data centre developments," said Chris Ortega, head of the Americas for Morgan Stanley Infrastructure Partners.