Pembina Pipeline Greenlights $4.6 Billion Alberta Gas Power Plant for Major Data Centre

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Pembina Pipeline ( (TSE:PPL) ) has issued an update.

Pembina Pipeline Corporation, together with Morgan Stanley Infrastructure Partners and Kineticor Asset Management, has approved a positive final investment decision for the Greenlight Electricity Centre, a 932 MW gas-fired combined cycle plant in Sturgeon County, Alberta, announced on July 2, 2026. The facility will supply dedicated, behind-the-meter power to a major data centre in Alberta’s Industrial Heartland, positioning Pembina as an early mover in serving the growing AI and cloud computing-driven data centre market.

Under a long-term tolling agreement, Greenlight will receive capacity and usage-based payments from the data centre customer, aligning the project with Pembina’s fee-based midstream model and providing a new stream of low-risk, contracted cash flows. The project, expected in service in the second half of 2030, has an estimated total cost of about $4.6 billion, or $2.3 billion net to Pembina, and is forecast to generate roughly $310 million in annual run-rate adjusted EBITDA, net to Pembina, supporting its 5–7 percent fee-based EBITDA per share growth target to 2030.

Pembina’s net investment in the project is expected to be approximately $2.1 billion after proceeds from a land sale to the data centre customer, with about 85 percent of capital costs secured under fixed-price agreements, including major equipment and services from Siemens Energy. The plant will require about 150 million cubic feet per day of natural gas, and Greenlight has already secured long-term gas transportation capacity on regional systems, enhancing redundancy and operational flexibility.

With ownership split between Pembina and MSIP at 47.5 percent each and Kineticor at 5 percent, the partners see GLEC as a scalable platform for future power-to-data centre projects, including potential expansion to 1,864 MW and further phases. The project has received all major regulatory approvals, and provincial and local leaders have framed it as a cornerstone investment for Alberta’s emerging data centre industry, job creation and broader economic growth, reinforcing Pembina’s strategic role in powering the province’s digital economy.