Canadian power generator TransAlta is in talks with major data center operators interested in building sites in Alberta, Canada.
In its Q3 results, TransAlta reported that it is in talks with “multiple hyperscalers” interested in developing data center campuses across Alberta.
“We’re also progressing several initiatives to ensure our sites are turnkey ready for data centers,” stated CEO, John Kousinioris.
In addition, the company announced plans to decommission its 401MW Sundance 6 gas-fired generating unit for up to two years, starting next April. The units have subsequently been earmarked as potential future developments tied to data centers or to enhance grid reliability.
The local government has shown interest in supporting data center development in Alberta, especially artificial intelligence installations.
However, concerns over grid reliability have led Alberta Premier Danielle Smith to legislate that if data centers wish to set up shop in Alberta, they will need to “Bring your own electricity, bring your own generation. Partner with a generating company.”
For Kousinioris, balance is important, with the government striving to “make sure that the grid remains reliable. So when you hear things like bring your own power … that’s code for, let’s do this in a balanced way and ensure that the system remains affordable, reliable, and we continue to sort of decarbonize it.”
As of May, at least six proposals for data centers in Alberta, with a total capacity of 2GW, were in various stages. By October, a handful of major projects, including three of 500MW or more, joined the grid operator’s connection queue.
Alberta’s deregulated electricity market is a significant driver of interest for data center operators as it allows them to negotiate power purchase agreements directly with generators.
Alberta has 22 data centers, 12 in Calgary and nine in Edmonton. It is being promoted as suited to the needs of data centers, with ample land, access to renewable energy or natural gas, and a climate conducive to data center operations.
Several hyperscalers have already signed PPAs in the region to support their operations. In late 2022, Microsoft inked a 15-year PPA with Potentia and Greengate to procure wind energy from the 198MW Paintearth Wind Project in Paintearth County, Alberta.
In addition, last month, eStruxture revealed it was building a new 90MW facility in Calgary. Slated to go live in the Fall of 2026, the data center will be located in Rocky View County, just north of Calgary.
