Project Reaches Final Investment Decision: The Greenlight Electricity Centre, a 932-megawatt gas-fired combined cycle power plant planned for Sturgeon County, Alberta, reached a positive final investment decision Wednesday, clearing the way for construction on a facility that will supply electricity to a major data center under a long-term tolling agreement. The project carries a total cost of approximately $4.6 billion, including financing costs, and is expected to enter service in the second half of 2030.
The plant is being developed by the Greenlight Electricity Centre Limited Partnership, owned by Pembina Pipeline Corporation at 47.5 percent, Morgan Stanley Infrastructure Partners at 47.5 percent, and Kineticor Asset Management at 5 percent. The site has the potential for expansion to a permitted generation capacity of 1,864 megawatts, positioning it as one of Alberta’s largest new sources of dispatchable power generation.
“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.
Project Cost and Financing
Greenlight obtained a Class III capital cost estimate of approximately $4 billion for the project. Including roughly $0.6 billion in interest during construction and other financing costs, the total project cost reaches approximately $4.6 billion. Approximately 85 percent of that cost has been secured under fixed-price agreements.
Pembina’s net investment totals approximately $2.1 billion after accounting for $190 million in proceeds from land sales to the customer. The company’s contribution will be financed through a combination of project debt and approximately $1 billion in equity contributions. Greenlight has arranged asset-level debt financing for approximately 60 percent of the project’s cost, with the remaining 40 percent financed through equity contributions from Pembina and Morgan Stanley Infrastructure Partners. Once operational, the facility is expected to generate annual run-rate adjusted EBITDA of approximately $310 million net to Pembina.
Equipment and Technical Scope
The plant will use two SGT6-8000H gas turbines and two SST6-5000 “KN” steam turbines coupled with two SGen6-3000W generators, all supplied by Siemens Energy. Greenlight secured delivery timing and cost certainty through a fixed-price agreement with Siemens Energy Inc., along with a long-term service agreement with Siemens Energy Canada Limited. The facility will require approximately 150 million cubic feet of natural gas per day, with transportation capacity secured through open seasons on Pembina’s Alliance Heartland Expansion Project and the TC Energy Nova Gas Transmission Ltd. system.
Contract Award and Construction Timeline
Greenlight has entered into fixed-price agreements with a consortium of Aecon Group Inc. and Técnicas Reunidas Alberta, Inc. for the engineering, procurement, and construction of the plant. Aecon holds a majority share in the consortium. Aecon’s $1.7 billion share of the contract value will be added to its Construction segment backlog in the third quarter of 2026. Construction is expected to begin in the third quarter of 2026. With completion anticipated in 2030. The scope includes civil works for existing and future power islands. Along with piping, mechanical, structural, electrical, and instrumentation work for the balance of plant, gas metering station, switchyard, and substation.
“The rapid advancement of AI infrastructure, data centres, digital transformation and economic growth are driving one of the most significant power infrastructure investment cycles, and unprecedented demand for power generation in North America,” said Jean-Louis Servranckx, President and Chief Executive Officer of Aecon Group Inc. “This contract award reflects Aecon’s multidisciplinary capabilities – supporting digital sovereignty and safely delivering large-scale, mission-critical infrastructure in sectors benefiting from long-term demand for power generation and grid expansion.”
Thomas Clochard, Executive Vice President and Chief Operating Officer of Aecon, added that the project’s scale requires world-class expertise. “Aecon’s execution discipline and experience building complex industrial and power infrastructure projects will be critical to safety, quality, schedule and cost performance,” Clochard said.
Aecon’s prior gas and power infrastructure work includes the TC Energy Napanee Generating Station, the East Windsor Cogeneration and Capital Power Expansion projects, and the Portlands Energy Centre in Ontario, along with the Spy Hill Peaking Station in Saskatchewan. Through United Engineers and Constructors, an Aecon company, the firm’s related project portfolio also includes the Ameren Big Hollow and Castle Bluff projects in Missouri and the Tennessee Valley Authority Johnsonville Cogeneration project in Tennessee.
Commercial Structure
Greenlight and the data center customer have entered into a long-term Electrical Energy Supply Agreement structured as a tolling arrangement. Providing Greenlight with capacity payments and usage-based payments covering fuel and operations and maintenance costs. Following construction, a third-party contractor will operate the facility under a long-term services agreement.
Ownership and Future Expansion
Kineticor led the origination and development of the project as part of an integrated offering to the customer. And will oversee future expansion opportunities, while Pembina will lead the construction management workstream. Separately, Morgan Stanley Infrastructure Partners acquired OPTrust’s 50 percent ownership interest in Greenlight. Upon reaching final investment decision, Kineticor was granted a 5 percent interest in the partnership, resulting in the current ownership split among the three partners.
The partners are also advancing potential additional power-to-data center projects, including a second phase of the Greenlight generation project. “GLEC will provide a meaningful contribution to Pembina’s growth in 2030 and beyond,” said Scott Burrows, President and Chief Executive Officer of Pembina. “We have leveraged our advantaged position within the Canadian midstream energy industry. And we are proud to be the first mover in responding to the power requirements of Alberta-based data centres.”
Alberta Premier Danielle Smith said the announcement reflects momentum from the province’s memorandum of understanding with the federal government last fall, including the abeyance of federal Clean Electricity Regulations. Sturgeon County Mayor Alanna Hnatiw said the project strengthens the region’s Industrial Heartland without increasing demand on Alberta’s electricity grid.
Greenlight’s final investment decision reflects a broader pattern of Canadian power infrastructure investment responding to rising electricity demand. On the same day, the federal government committed $3.5 billion toward British Columbia’s North Coast Transmission Line, a separate project designed to more than double clean electricity capacity for LNG and mining developments in the province’s northwest. While Greenlight will deliver gas-fired power directly to a single Alberta data center, both projects illustrate how electricity demand from industrial and digital infrastructure growth is driving new investment in generation and transmission capacity across the country.
Greenlight Electricity Centre Factsheet
Project Overview
- Name: Greenlight Electricity Centre (GLEC)
- Location: Sturgeon County, Alberta, within the Alberta Industrial Heartland
- Type: Gas-fired combined cycle power generation facility
- Initial capacity: 932 megawatts
- Expandable permitted capacity: Up to 1,864 megawatts
- Anticipated in-service date: Second half of 2030
- Customer: A major data center development
Ownership
- Pembina Pipeline Corporation: 47.5 percent
- Morgan Stanley Infrastructure Partners: 47.5 percent
- Kineticor Asset Management: 5 percent
Project Cost
- Class III capital cost estimate: Approximately $4 billion
- Total project cost, including financing: Approximately $4.6 billion
- Share of cost secured under fixed-price agreements: Approximately 85 percent
- Pembina’s net investment: Approximately $2.1 billion, after $190 million in land sale proceeds
- Financing structure: Approximately 60 percent asset-level debt, 40 percent equity
Expected Financial Performance
- Annual run-rate adjusted EBITDA, net to Pembina: Approximately $310 million
Equipment
- Two SGT6-8000H gas turbines (Siemens Energy)
- Two SST6-5000 “KN” steam turbines (Siemens Energy)
- Two SGen6-3000W generators (Siemens Energy)
- Natural gas requirement: Approximately 150 million cubic feet per day
Construction and Delivery
- EPC contractor: Consortium of Aecon Group Inc. and Técnicas Reunidas Alberta, Inc.
- Aecon’s contract share: $1.7 billion
- Construction start: Third quarter of 2026
- Construction completion: 2030
- Construction scope: Civil works for power islands, piping, mechanical, structural, electrical and instrumentation work, gas metering station, switchyard, and substation
Commercial Structure
- Agreement type: Long-term Electrical Energy Supply Agreement structured as a tolling arrangement
- Payment structure: Capacity payments and usage-based payments for fuel and operations and maintenance
- Post-construction operations: Third-party contract operator under a long-term services agreement
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