Capital Power Corporation has made a positive final investment decision on the Greenlight Electricity Centre, a dedicated gas-fired power project in Sturgeon County, Alberta.1 The plant is designed to supply Meta Platforms, Inc., which operates a data center in the county.1
"The agreement is exactly the kind of opportunity Capital Power has been preparing for, as AI infrastructure" drives new power demand, said Avik Dey, the company's chief executive.1 The deal marks a shift away from spot-market power procurement toward direct, long-term bilateral contracts between hyperscalers and regional generators.
Pembina Pipeline Corporation is positioning itself for similar deals. "Dedicated, contracted gas-to-power infrastructure represents a promising new growth platform for Pembina," said Scott Burrows, the company's chief executive.2 The comments point to gas-to-power project development becoming a distinct capital allocation category for pipeline and utility operators, separate from traditional oil and gas transport.
The Greenlight decision is a concrete test case for a broader financing pattern taking shape across North American power markets. Meta, Microsoft, Google, and Amazon are each expanding data center footprints that require guaranteed, dedicated electricity supply rather than reliance on grid capacity alone. Long-term power purchase agreements with hyperscalers give generators like Capital Power contracted revenue that can underwrite the capital cost of new gas-fired plants.
For investors, the structure matters: dedicated bilateral contracts reduce merchant power price exposure and lock in offtake before construction begins, a financing profile closer to infrastructure debt than commodity generation. Alberta's deregulated power market and gas availability make it an early proving ground for this model.
The key metric to watch over the next 12 to 24 months is whether other utilities and independent power producers announce comparable capex commitments and PPAs tied to hyperscaler data center buildouts, and whether gas-to-power project pipelines and final investment decisions accelerate in regions hosting AI infrastructure.
