Capital Power to pursue U.S. acquisitions, negotiate Alberta data centre deal
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Article contentCapital Power Corp. has announced agreements to pursue U.S. natural gas power acquisitions and to supply electricity to a data centre developer in Alberta.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Edmonton-based power generator said Wednesday it has reached a memorandum of understanding with funds managed by affiliates of New York-based Apollo Global Management. That MOU will see Capital Power and Apollo Funds form a US$3-billion investment partnership to buy merchant natural gas assets across the United States.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentApollo is to commit US$2.25 billion in equity, with Capital Power pitching in the rest and able to choose to take a 25 to 50 per cent interest in each acquisition. Capital Power would also operate the acquired power plants and receive management and performance fees.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentSeparately, Capital Power said it has entered into a binding MOU to negotiate a 250-megawatt electricity supply agreement with an unidentified investment-grade data centre developer in Alberta with an expected 2028 start date. Capital Power has said its natural gas-powered Genesee Generating Station west of Edmonton would be an ideal fit for such a project.Article content“Now more than ever, we see an opportunity to grow our business as a result of structural growth in power demand driven by the AI infrastructure boom and the growing need for reliable and affordable energy,” Capital Power chief executive Avik Dey said in a news release.Article contentThe move comes as the Alberta government looks to attract $100 billion in data centre investment over five years. It takes an enormous amount of power to run and power the sprawling facilities that house the computing firepower needed in the burgeoning artificial intelligence industry.Article contentArticle contentA wide ranging energy accord the Alberta and federal governments signed last month calls for the implementation of a policy framework by July 1 to incentivize large investments in data centre development.Article contentMeanwhile, Capital Power says it’s expecting its adjusted funds from operations to range from $890 million to $1.01 billion in 2026. Adjusted earnings before interest, taxes, depreciation and amortization are expected to come in at $1.57 billion to $1.77 billion.Article contentIt has also earmarked $290 million to $330 million in sustaining capital for next year.Article contentCapital Power has also set a target of adding 50 per cent more U.S. power generating capacity by 2030. It’s also aiming for a 13 to 15 per cent annual total shareholder return, eight to 10 per cent annual adjusted funds from operations growth and two to four per cent dividend growth over that period.Article contentThis report by The Canadian Press was first published Dec. 10, 2025.Article contentCompanies in this story: (TSX:CPX)Article contentTrending David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News This Canadian mine is as big as a city. 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David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News This Canadian mine is as big as a city. It has a basketball court and its chefs serve 4,000 meals daily Commodities This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News Bank of Canada holds interest rate at 2.25%, citing resilient economy Economy