Capital Power says meaningful engagement with local communities will play a critical role as Alberta positions itself as a destination for large-scale data centre developments fueled by the rapid growth of artificial intelligence.
Speaking during the company’s latest earnings call, Capital Power President and CEO Avik Dey said recent public opinion research highlights the importance of building trust with communities before major infrastructure projects move forward.
His comments followed the release of a Leger survey showing Canadians remain divided over data centre development. According to the poll, 46% of respondents view data centres positively, while 37% believe they are a negative development. At the same time, four out of five Canadians expressed concerns that the facilities could lead to higher electricity bills.
Dey said the findings reinforce the need for companies to work collaboratively with local stakeholders throughout the planning process, adding that public support or opposition will likely depend on the specific impacts of individual projects.
The Leger online survey gathered responses from 1,505 Canadians between July 10 and July 13. As with other online surveys, the Canadian Research Insights Council notes that the results cannot be assigned a traditional margin of error because participants were not selected through random sampling.
Demand for data centres has surged alongside the rapid expansion of artificial intelligence, with hyperscale facilities requiring enormous computing capacity and substantial electricity supplies. Many new projects now include dedicated power generation capable of supplying energy on the scale of a small city.
The Government of Alberta has actively promoted the province as a destination for hyperscale data centre investment. However, local communities have raised concerns about increased electricity consumption, water usage, noise and the potential impact on utility costs. To reduce pressure on Alberta’s electrical grid, provincial officials are prioritizing projects that include their own power generation.
Earlier this month, Meta Platforms announced plans to invest $13 billion in a major data centre campus north of Edmonton. The project will be supported by a new natural gas-fired power plant developed by Pembina Pipeline, Morgan Stanley Infrastructure Partners and Kineticor Asset Management.
Because the data centre is expected to begin operations before the new power plant is completed, Meta has secured interim electricity supplies through several providers, including Capital Power.
Under a long-term agreement, Capital Power will provide 250 megawatts of electricity to the Meta facility beginning in the second half of 2028.
Dey said the agreement allows the company to convert existing merchant generation into stable, long-term contracted revenue without requiring additional capital investment. He also noted that the contract applies at the portfolio level and does not place restrictions on individual generating assets.
Capital Power is also in discussions with additional hyperscale developers interested in building data centres adjacent to the company’s Genesee natural gas-fired generating station west of Edmonton.
According to Dey, several conversations are underway regarding the scale, timing and potential development of the site as demand for AI infrastructure continues to grow.
Alongside its strategic update, Capital Power reported improved financial results for the second quarter. The company posted a net loss of $44 million, or $0.33 per share, compared with a $132 million loss, or $0.92 per share, during the same period last year.
The company also increased its quarterly dividend to $0.7048 per share, up from $0.6910 per share.
Adjusted funds from operations rose to $328 million, or $2.09 per share, compared with $235 million, or $1.55 per share, a year earlier.
Revenues and other income meanwhile rose to $740 million, up significantly from $441 million in Q2 2025, indicating stronger operating performance as the company plays a growing role in powering Canada’s burgeoning digital infrastructure.
