Pembina to Secure Data Center Deal With Meta in Alberta

Pembina Pipeline Corporation PBA is set to finalize a big deal to build a large AI data center northeast of Edmonton for the global tech company Meta Platforms META, according to The Logic, as cited in an MSN article. This deal is an important step for Alberta as it aims to become a major data hub for the world’s top AI companies. A key part of this plan is using Alberta’s plentiful natural gas as a clean and reliable energy source to power these energy-hungry facilities.

Pembina Partners With Kineticor and Beacon AI to Power AI Infrastructure

In partnership with Calgary-based energy firm Kineticor, which specializes in power generation facilities, Pembina will supply natural gas-fired electricity to the Meta data center project. Beacon AI, another Calgary-based data center company, has reportedly played an integral role in the deal by providing crucial expertise in data center development. While contractual details remain under negotiation, regulatory announcements could emerge imminently, marking a significant milestone in Alberta’s AI infrastructure ambitions.

Alberta’s Industrial Heartland: The Epicenter of AI Data Center Development

Meta’s data center will be located in Alberta’s Industrial Heartland, a strategically vital cluster of oil refineries, petrochemical plants and clean technology operations near Fort Saskatchewan. This region not only boasts world-class industrial infrastructure but is also a hub for advanced carbon capture and storage (“CCS”) technologies, which can play a key role in mitigating the environmental impact of high-energy AI operations. The proximity of CCS facilities offers Meta and other tech giants the opportunity to significantly reduce the carbon footprint of their AI workloads.

Meeting the Immense Energy Demands of AI With Natural Gas Power

As hyperscale tech companies race to enhance AI capabilities, their data centers require vast quantities of electricity to train, deploy and maintain complex AI models. While some players, including Microsoft, have opted for nuclear power to minimize emissions, the limited availability and extended build times for nuclear infrastructure have led many to consider natural gas as a practical interim solution. Pembina and Kineticor’s collaboration embodies this approach by delivering scalable natural gas power optimized for the unique demands of AI data centers.

Greenlight Electricity Center: Modular Power Solutions for AI Expansion

Earlier this year, PBA, Calgary-based oil and gas storage and transportation company and Kineticor jointly announced the development of the Greenlight Electricity Center (“GLEC”) — a 1,800-megawatt natural gas power station within the Industrial Heartland. Designed for phased construction in 450-megawatt increments, GLEC is engineered with future-ready carbon capture capabilities to align with evolving sustainability standards. Scheduled for commercial operation by 2029, the facility is intended to either supply power directly to colocated data centers or bolster the broader Alberta grid, supporting multiple AI infrastructure projects across the province.

Pembina reportedly would supply natural gas via its Alliance pipeline — an extensive 3,800-kilometer network linking northern British Columbia and Alberta to Chicago. The company is actively exploring pipeline expansion to increase capacity by 350 million cubic feet per day, reinforcing Alberta’s role as a critical energy supplier for AI data centers.

Alberta’s Bold Strategy to Become a Leading AI Data Hub

Alberta’s government has aggressively courted Silicon Valley tech firms, leveraging the province’s extensive natural gas infrastructure and cutting-edge CCS technologies to attract major data center investments. The Meta project, enabled by Pembina and its partners, embodies this strategy and highlights Alberta’s commitment to building a sustainable, high-capacity AI ecosystem that balances economic growth with environmental responsibility.

This initiative positions Alberta uniquely among North America’s jurisdictions, combining traditional energy strengths with innovative climate technologies, thus providing hyperscalers like Meta a compelling location to expand their AI infrastructure.

Meta’s Expanding AI Infrastructure Footprint in North America

Meta’s decision to develop a new AI data center in Alberta aligns with its aggressive expansion plans, which include a 5,000-megawatt data center in Louisiana and a separate 1,000-megawatt facility in Ohio. These developments reflect Meta’s relentless pursuit of compute capacity to support increasingly sophisticated AI applications.

By situating a major facility in Alberta’s Industrial Heartland, Meta gains access to a resource-rich environment capable of meeting the enormous power requirements of AI, with the added advantage of proximity to advanced carbon mitigation technologies.

Conclusion: Pembina Catalyzes Alberta’s Rise in AI Infrastructure

The imminent deal between Pembina and Meta, facilitated by Kineticor and Beacon AI, represents a transformative chapter for Alberta’s Oil-Energy and technology sectors. The integration of scalable natural gas power through the Greenlight Electricity Center, combined with Alberta’s leadership in carbon capture technology, sets a new standard for sustainable AI infrastructure development.

Pembina’s ability to deliver substantial natural gas volumes via its Alliance pipeline, coupled with strategic partnerships, will not only accelerate Alberta’s emergence as a global AI hub but also redefine how energy resources can be leveraged responsibly to fuel next-generation technologies.

PBA's Zacks Rank & a Key Pick

Currently, PBA has a Zacks Rank #3 (Hold) and Meta holds a Zacks Rank #2 (Buy)

Investors interested in the energy sector might look at some other-ranked stocks like Canadian Natural Resources Limited CNQ, currently sporting a Zacks Rank #1 (Strong Buy), and TechnipFMC plc FTI,  which holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Natural is one of Canada's largest independent oil and natural gas producers, with operations spanning exploration, development and production across North America, the North Sea and Offshore Africa. The company focuses on a diversified portfolio of assets, including oil sands, conventional crude oil, natural gas and thermal in-situ operations. Canadian Natural is valued at $66.28 billion.  

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