Aecon Lands $1.7B Alberta Power Job Tied to AI Data Centre Build

Aecon Group (TSX: ARE) said Wednesday that a consortium it controls has won a multibillion-dollar contract to build a 932 MW natural gas-fired power plant in Sturgeon County, Alberta, that will serve a major data centre development.

Aecon's $1.7 billion share of the contract will hit its Construction segment backlog in the third quarter of 2026. The full contract value was not disclosed.

The buyer is Greenlight Electricity Centre Limited Partnership, a vehicle owned by Pembina Pipeline Corporation (TSX: PBA), Morgan Stanley Infrastructure Partners, and Kineticor Asset Management. The plant, called the Greenlight Electricity Centre, has room to expand to 1,864 MW of permitted capacity.

"The rapid advancement of AI infrastructure, data centres, digital transformation and economic growth are driving one of the most significant power infrastructure investment cycles," Aecon CEO Jean-Louis Servranckx said in the release.

Construction starts in the third quarter of 2026 and is expected to finish in 2030. Aecon's consortium partner is Técnicas Reunidas Alberta, Inc., a Spanish engineering firm with experience in large-scale power projects. Aecon holds a majority stake in the joint venture.

The project follows early engineering and development work that Aecon had already completed. The company said the award extends its multi-year revenue visibility and expands its role in power infrastructure tied to AI, data centres, and electrification.

Aecon's scope covers civil works for current and future power islands, plus piping, mechanical, structural, electrical, and instrumentation work for the balance of plant, gas metering, switchyard, and substation.

What the deal says about power demand

The GLEC plant is one of Alberta's largest new sources of dispatchable power generation, according to the company. Dispatchable means it can run when called on, unlike wind or solar. That matters because data centres need steady, high-volume power 24/7.

Alberta's grid has been under pressure from population growth and industrial expansion. The province's electricity market is deregulated, which means large buyers like data centre operators can sign direct power purchase agreements rather than relying on the grid alone. The GLEC structure – a dedicated plant co-located with the data centre it serves – is becoming more common as hyperscalers look for reliable supply without waiting for utility-scale transmission upgrades.

Who is exposed

Pembina Pipeline (PBA) is the midstream energy company backing the project through the Greenlight partnership. Pembina's Alpha Score sits at 55/100, labelled Moderate, in the Energy sector. The stock page is at PBA stock page.

Morgan Stanley (MS) is participating through its infrastructure arm. Morgan Stanley's Alpha Score is 56/100, also Moderate, in the Financials sector. The stock page is at MS stock page.

For both firms, the GLEC project represents a long-duration infrastructure investment with contracted revenue tied to a single large off-taker – the data centre operator. The risk is concentration: if the data centre's buildout slows or the operator changes plans, the plant's economics shift. The upside is that Alberta's power market is tight, and dispatchable generation assets are scarce.

What to track

The key milestone is the third-quarter 2026 backlog addition. That will give the market a concrete number for Aecon's forward revenue. The construction timeline runs to 2030, so revenue recognition will be gradual. For Pembina and Morgan Stanley, the project is one of several infrastructure bets on AI-driven power demand. The broader question is whether the pace of data centre construction justifies the generation buildout, or whether the market is front-running demand that takes longer to materialize.

Aecon shares trade on the Toronto Stock Exchange. The company's backlog was C$6.4 billion at the end of the first quarter of 2026, before this award.