Canada: Kineticor and Pembina launch joint project for an energy and data centre complex

Kineticor Asset Management and Pembina Pipeline Corporation announce a partnership to develop a major project in Alberta, combining an electricity generation plant and a data centre complex. The project aims to meet the growing demand of the local data centre industry.

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Kineticor Asset Management LP (“Kineticor”) and Pembina Pipeline Corporation (“Pembina”) have entered into a strategic partnership to develop the Greenlight Electricity Centre (“GLEC”), an energy project combining an electricity generation plant and a data centre complex in Alberta. The project, whose first phase could reach a capacity of 1,800 MW, relies on a partnership between Kineticor and Pembina, with the latter taking a 50% stake in the Greenlight Electricity Centre Limited Partnership (“Greenlight LP”).

The GLEC will consist of modular phases, each approximately 450 MW, and will be designed to meet the growing energy needs of the data centre industry. The plant will be coupled with a data storage infrastructure, which could house a data centre with a similar capacity of 1,800 MW. Located in Alberta’s “Industrial Heartland”, the area is particularly advantageous due to its proximity to transmission lines, energy infrastructure, as well as options for carbon sequestration and fibre optics.

Development supported by existing infrastructure

The project benefits from Kineticor’s experience, already responsible for managing and operating the 900 MW Cascade Power Plant near Edson, Alberta. According to Stu Taylor, Senior Vice President and Head of Corporate Development at Pembina, this partnership allows Pembina to extend its value chain, notably through its Alliance Pipeline network, which could supply natural gas to the plant. He also discussed the opportunity to integrate emissions reduction solutions, thanks to the upcoming Alberta carbon network.

Andrew Plaunt, CEO of Kineticor, highlighted the advantages of the site chosen for GLEC, particularly the large available space, access to a robust electrical grid, and potential decarbonisation solutions. This project thus provides an ideal framework for infrastructure development on such a scale, meeting energy needs while aligning with provincial environmental goals.

Meeting the growing energy demand for data centres

The GLEC aims to meet the energy needs of the rapidly growing data centre industry in Alberta. The power plant is currently in phase 3 of the interconnection process with the Alberta Electric System Operator (“AESO”), and the project is also advancing in terms of permitting, design, and contracting. Depending on demand, the plant could either supply energy directly to on-site data centres or connect to the grid to support electricity demand across the province.

The development of GLEC has already begun discussions with several potential clients who could establish their data centres on the project’s land or enter into long-term power purchase agreements. This project aims to facilitate the rapid deployment and expansion of data infrastructure, with reliable and affordable energy supply.

Supporting Alberta’s vision for a prosperous data centre industry

The Government of Alberta has set an ambitious goal of attracting $100 billion in investments in data centres by 2030. This partnership between Pembina and Kineticor supports this objective by providing reliable and scalable energy solutions for data centres in Alberta. The planned infrastructure could serve as a model for the growth of the industry in the province, meeting energy needs while supporting local economic ambitions.

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