Alberta approves $4.6B gas-powered project to support AI data centre in Sturgeon County

CALGARY — The Alberta government is celebrating a major private-sector commitment to the province’s growing artificial intelligence and data centre industry after a consortium of energy and infrastructure companies gave the green light to a $4.6-billion natural gas-powered electricity project in Sturgeon County.Premier Danielle Smith, Affordability and Utilities Minister RJ Sigurdson, and Technology and Innovation Minister Nate Glubish said the Greenlight Electricity Centre represents the type of large-scale development Alberta hopes to attract as it positions itself as a North American hub for AI infrastructure and power generation.The project, being developed by a partnership that includes Pembina Pipeline Corporation, Kineticor Asset Management and Morgan Stanley Infrastructure Partners, will provide up to 932 megawatts of electricity to a proposed data centre development in Sturgeon County.According to the province, the project will support approximately 1,000 construction jobs and create 30 permanent skilled positions once operational. Alberta also expects to receive millions of dollars in royalties from the natural gas consumed by the facility..DATA CENTRE DOUBLE DOWN: Alberta presses ahead with AI strategy as global projects falter.The government said the project demonstrates the economic opportunities created by the energy agreement reached between Alberta and Ottawa in the fall of 2025.Smith and her ministers argued the removal of the federal Clean Electricity Regulations from the agreement helped restore investor confidence in Alberta’s dispatchable power sector, paving the way for large-scale projects that require reliable baseload electricity generation.The province said the agreement will help Alberta expand oil and gas production, secure additional energy developments and attract billions of dollars in private-sector spending in the years ahead.The Greenlight Electricity Centre is also being cited as an example of Alberta’s “Bring Your Own Power” approach for AI data centres, a policy requiring major data centre operators to provide their own electricity generation and pay for associated infrastructure.The government says the model protects the reliability of the province’s electrical grid while shielding consumers from additional costs.Under the framework, Alberta officials contend projects such as Greenlight can help lower transmission costs by adding new generation capacity without placing additional demands on the existing electricity system.The announcement comes as Alberta aggressively pursues new AI and data centre developments, with the province pitching its abundant natural gas resources, deregulated electricity market and relatively low energy costs as competitive advantages in attracting global technology investment.

Alberta approves $4.6B gas-powered project to support AI data centre in Sturgeon County

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