TransAlta has signed a memorandum of understanding with Canada Pension Plan Investment Board and Brookfield Corporation to advance a major data-centre development at its Keephills site in Northern Alberta, where it will serve as the exclusive site and power provider.

The agreement establishes a framework for phased development at the Keephills site in Parkland County, including an initial long-term power purchase agreement for approximately 230 megawatts, said TransAlta. The parties will also evaluate opportunities for additional development aggregating up to one gigawatt of load. All phases of the project remain subject to regulatory approvals and the negotiation of definitive binding agreements.

“The Keephills site provides a strategic platform that leverages TransAlta’s large zoned land position, existing transmission, natural gas and water infrastructure, as well as on-site generation to support long-term project scale,” said John Kousinioris, president and CEO of TransAlta.

The project is in line with Alberta government guidelines calling for data-centre developers to provide, or source the power for their projects themselves. If the proposed development proceeds, it may be able to capitalize on the province’s expected regulatory-approval fast-tracking program. Premier Danielle Smith’s government aims to attract $100 billions worth of data-centre investment by 2030.

TransAlta is one of Canada’s largest publicly traded power generators, delivering electricity across Canada, the United States and Western Australia. The company has operated energy infrastructure for more than 100 years and maintains a technology-diverse portfolio focused on providing reliable power while advancing the transition to evolving energy systems.

Pictured: TransAlta’s Keephills power facility in Northern Alberta.

Photo: TransAlta