TransAlta Forges Strategic Alliance with Brookfield and CPPIB for Data Centre Development
Alberta's premier electricity generator, TransAlta Corp., has announced a significant partnership with global infrastructure investors Brookfield Corp. and the Canada Pension Plan Investment Board (CPPIB) to advance a major data centre initiative at its Keephills generation facility, located west of Edmonton. This collaboration marks a strategic move to capitalize on the burgeoning demand for data storage and processing capacity driven by artificial intelligence systems.
Powering Alberta's Digital Infrastructure Ambitions
The memorandum of understanding, signed on Friday, establishes a framework for developing a high-tech warehouse in central Alberta. The project will commence with a 230-megawatt facility, leveraging TransAlta's existing infrastructure and recent municipal rezoning approvals from Parkland County, which permits data centre development on 3,000 acres surrounding the Keephills and Sundance power plants.
Joel Hunter, TransAlta's chief financial officer and incoming chief executive, emphasized the partners' capabilities during the company's quarterly earnings call. "As experienced global infrastructure investors, they have the capability to deliver projects of this size and complexity," Hunter stated, highlighting the strategic importance of this alliance.
Addressing Grid Capacity Challenges
This initiative comes at a critical time for Alberta's energy landscape. The Alberta Electric System Operator has received numerous requests for power from data centre projects, threatening to overwhelm the provincial grid. In response, the Alberta government is encouraging data centre operators to either bring their own power or collaborate with existing generators.
TransAlta's approach aligns with this policy direction. The company has secured approval to sell approximately 230 megawatts to a data centre, though specific customers have not been publicly disclosed. Furthermore, the partnership with Brookfield and CPPIB will explore additional projects requiring up to a gigawatt of power—equivalent to the electricity needs of an entire city.
Strategic Vision and Future Prospects
During the fourth-quarter earnings call, TransAlta executives provided insights into their long-term strategy. Chief executive John Kousinioris revealed that the company is "actively engaged" in discussions with provincial authorities to connect with more data centres. He identified two mothballed power generators as potential sources for the gigawatt-scale power outlined in the MOU.
"Our view is that it will be critically important for the province to be able to rely on under-utilized generation, in essence, as a form of bring-your-own-power," Kousinioris explained. "I think we've been heard on that."
Financial Context and Market Position
Despite reporting a net loss attributable to common shareholders of $190 million for 2025, compared to a $177-million profit the previous year, TransAlta demonstrated confidence by raising its dividend to seven cents per share. This financial maneuvering underscores the company's commitment to balancing investment in future growth with shareholder returns.
TransAlta joins a growing cohort of Alberta enterprises seeking to establish a foothold in the data centre market, where U.S. technology giants are aggressively expanding facilities to support AI-driven computing demands. This partnership with Brookfield and CPPIB not only enhances TransAlta's competitive positioning but also contributes to Alberta's evolving energy and technology ecosystems.
