A stake in Alberta power plant might serve data center Feb28 :
After reporting a decline in quarterly profitability and an increase in pipeline flows, Pembina Pipeline Corp. stated that it is investing in a proposed natural gas power plant in the Edmonton area that may fuel a huge data center complex.
It said on Thursday that it has signed contracts for a 50% share in the Greenlight Electricity Limited Partnership, which intends to construct a 1,800 megawatt power producing facility in the Industrial Heartland of Alberta. Kineticor Holdings LP, a division of pension provider OPTrust, would be its partner.
In addition to having adequate space for a data center complex that uses the same amount of energy as the plant’s output, the Greenlight Electricity Centre may incorporate carbon capture.
Stu Taylor, senior vice president and corporate development officer at Pembina, stated, “We are thrilled to be working with Kineticor and for the chance to further expand our value chain to provide power to a promising new Alberta-based data center industry.”
“With its vast land base, strong grid infrastructure, and potential for long-term decarbonization solutions, Alberta’s Industrial Heartland is among the best places in the province to support a project of this size,” said Andrew Plaunt, CEO of Kineticor.
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“By working together with Pembina, we can take advantage of and pool our unique skills and strengths in large-scale infrastructure projects to create a world-class facility.”
According to the province’s technology minister, Alberta intends to build $100 billion worth of AI data centers over the course of the next five years. In order to operate and cool down computer servers, the enormous operations need a tremendous quantity of electricity.
Pembina reported on Thursday that its fourth-quarter earnings were $572 million, compared to $698 million in the same period last year.
The Calgary-based business reports that its revenue for the quarter that ended on December 31 increased to $2.15 billion from $1.84 billion in 2023. Compared to $1.21 a year ago, earnings per diluted common share were down to 92 cents.
For the entire fiscal year, Pembina’s revenues and earnings increased over 2023. Throughout the quarter and the entire fiscal year, pipeline volumes increased.