Canadian independent power producer Capital Power has agreed to supply 250MW of electricity to a new Meta Platforms data centre in Sturgeon County, Alberta.

The energy supply agreement (ESA), which extends for more than ten years, is expected to support the facility when it begins operations in the latter half of 2028.

The arrangement involves energy and capacity provision from Capital Power’s power generation assets in Alberta.

The ESA is structured to provide long-term, contracted cash flows. At the same time, it enables Capital Power to continue commercial activities at its Genesee site in the province.

The Genesee station is a thermal power facility that supplies more than 1.8GW of baseload electricity.

Meta will use the contracted power for its upcoming data centre facility.

The company will start drawing from the 250MW supply once the load comes online.

Capital Power president and CEO Avik Dey said: “This agreement is exactly the kind of opportunity we have been preparing for – AI infrastructure will be built where power is available, reliable and scalable, and with the support of Capital Power’s fleet, Alberta meets the mark.

“We are grateful to the Government of Alberta and the Federal Government of Canada for creating an investment environment that makes projects like this possible.”

Alberta Premier Danielle Smith said: “This agreement is another example of Alberta’s plan delivering results. Investments like this create thousands of jobs, generate new revenue that helps pay for the services Albertans rely on and help reduce transmission costs for consumers.

“That is exactly why our government has worked to make Alberta the best place in North America to invest in AI and digital infrastructure.”

Capital Power indicated that the agreement forms part of its broader strategy to help meet rising electricity demand in North America through targeted investment and partnerships.

The company highlighted ongoing growth in electricity demand due to industrial development, electrification and digital infrastructure projects.

Last month, Meta and RWE entered into a long-term corporate power purchase agreement for the 298MW-alternating current Rabbit’s Foot Solar project in north-east Texas, US.