Community Engagement Key as Alberta Data Centres Expand, Says Capital Power CEO

📅 5 days ago

Capital Power Corp.'s CEO emphasizes the need for community engagement amid mixed public sentiment on data centres in Canada, as the company reports improved financial performance and explores partnerships for new developments.

EDMONTON — Avik Dey, the chief executive officer of electricity generator Capital Power Corp., highlighted the significance of engaging with local communities in light of a recent poll that shows Canadians have divided opinions on data centre developments. The survey conducted by Leger and released earlier this month indicates that while 46 percent of Canadians consider data centres beneficial, 37 percent view them negatively. Notably, 80 percent of respondents expressed concerns regarding the potential increase in utility bills associated with these facilities.
Dey shared these insights during a conference call with analysts after the Edmonton-based company announced an increase in its dividend and reported a smaller quarterly loss. He stressed that the results of the survey serve as a reminder of the need for constructive, cooperative, and collaborative partnerships in infrastructure development. “Where we are on data centres is it’s very front of mind for us just given the capital cost and magnitude of it, but I absolutely don’t take it lightly. I think it just reaffirms the importance of engagement,” he stated.
The CEO anticipates that the support or opposition towards data centres will be influenced by local sentiments surrounding specific projects. The online survey, which included responses from 1,505 Canadians and was conducted between July 10 and July 13, was noted to lack a margin of error as it did not involve a random sampling of the population, according to the Canadian Research Insights Council.
Data centres are vital for hosting computing hardware that supports a range of technological applications. As the demand for artificial intelligence escalates, the size and energy requirements of these facilities have surged significantly. Many data centre developers are now investing in adjacent power plants capable of supplying enough electricity to support entire cities.
In Alberta, the provincial government has been keen to attract hyperscale developers to establish their operations within the region. However, this initiative has raised local concerns regarding water consumption, noise pollution, and the impact on utility costs. To mitigate the strain on the existing power grid, the province is prioritizing developers who can provide their own energy supply.
In a notable development, tech giant Meta Platforms Inc. recently unveiled a $13 billion plan to construct a data centre complex north of Edmonton. This project will be linked to a new gas-fired power plant that is set to be developed by Pembina Pipeline Corp., Morgan Stanley Infrastructure Partners, and Kineticor Asset Management. Meta's data centre is anticipated to commence operations before the power plant itself, prompting the company to secure alternative power supplies, including a long-term energy supply agreement with Capital Power.
The agreement will provide 250 megawatts of electricity for the Meta data centre, expected to be available in the second half of 2028. Dey explained, “It converts existing merchant power generation into stable, long duration contracted cash flows, and it does so with no capital investment. Additionally, the agreement is at the portfolio level and does not encumber any of our assets.”
Furthermore, Dey mentioned ongoing discussions with potential data centre partners interested in building facilities adjacent to Capital Power’s Genesee gas-fired plant, located west of Edmonton. “We’re having multiple conversations today around how and when and at what quantum to develop that site,” he noted.
In its latest quarterly report, Capital Power disclosed a net loss attributable to shareholders of $44 million, translating to 33 cents per share, a decrease from a net loss of $132 million, or 92 cents per share, in the same quarter last year. The company announced an increase in its quarterly dividend to 70.48 cents per share, up from 69.10 cents per share. Adjusted funds from operations, which Capital Power uses to indicate its capability to fund growth, repay debt, and distribute dividends, rose to $328 million, or $2.09 per share, compared to $235 million, or $1.55 per share in the previous year’s quarter. The company’s revenues and other income for the quarter reached $740 million, a significant jump from $441 million in the second quarter of 2025.

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