TransAlta Poised to Finalize Alberta Data Centre Agreement in 2025 

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CALGARY -

TransAlta Corp., one of Alberta’s leading power producers, is moving toward finalizing agreements with partners to establish a data centre in the province, aiming to have definitive contracts signed before the end of the year.

CEO John Kousinioris stated during an analyst conference that the company seeks to secure exclusivity with key partners by mid-year, with detailed design plans and final agreements expected by late 2025. Once the contracts are signed, the data centre is anticipated to be operational within 18 to 24 months.

Data centres, which are critical for high-tech industries such as artificial intelligence, consume large amounts of electricity to run and cool servers. In this context, TransAlta plans to supply around 90% of its partner's energy needs for the facility, with the remainder coming from the broader electricity market.

Alberta has identified data centres as a strategic priority, aiming to see $100 billion in AI-related data centre construction over the next five years. However, the rapid growth of this sector presents challenges for the region’s energy infrastructure. Electricity demand from data centres has already outpaced the available capacity in Alberta’s power grid, potentially impacting the province’s decarbonization goals.

To address these challenges, TransAlta has adopted a renewable energy investment strategy. The company announced a $3.5 billion growth plan focused primarily on clean electricity generation and storage through 2028. By then, more than two-thirds of TransAlta’s earnings are expected to come from renewable power generation.

The collaboration between TransAlta and data centre developers represents an opportunity to balance growing energy demand with sustainability goals. By integrating renewable energy generation into data centre operations, Alberta could move toward a cleaner and more resilient energy future.

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