Proposed Data Center and Cogeneration Power Facilities in Clearwater County, Alberta
Clearwater County is positioning itself as an emerging hub for data center development and power generation in Alberta, with several significant projects in various stages of planning. The region's strategic advantages, including available land, proximity to existing power infrastructure, and supportive provincial policies, have attracted substantial investment interest. Recent developments indicate a coordinated effort to establish both power generation facilities and data centers, creating a self-sustaining ecosystem that aligns with provincial goals for economic diversification and technological advancement.
Flipi Gas Fired Generation Project
The most significant power generation proposal for Clearwater County is the Flipi Gas Fired Generation Project, spearheaded by Calgary-based Kiwetinohk Energy Corp. This ambitious project represents a major investment in the region's energy infrastructure and has direct implications for data center development.
Project Specifications and Location
The Flipi Gas Fired Generation Project is designed as a 460-megawatt power plant to be constructed on 33 acres of privately owned land approximately 18 kilometers southwest of Rimbey in Clearwater County[1][2][3]. The proposed facility would include advanced carbon capture capabilities, reflecting a commitment to reducing environmental impact while meeting growing energy demands[1][2]. The project's design includes a 240-kilovolt substation that would connect to the province's existing energy grid through transmission line 926L, ensuring efficient integration with Alberta's broader power infrastructure[1][4].
Natural gas, which would fuel the generation facility, would be supplied by a nearby pipeline, minimizing additional infrastructure requirements and leveraging existing resources[1][2]. The Alberta Electric System Operator (AESO) has documented the connection requirements, which include adding a substation (to be designated as Leedale 1076S) with three 240 kV circuit breakers and connecting it to the existing transmission line using an in-and-out configuration[4].
Regulatory Process and Timeline
Kiwetinohk Energy Corp. has already applied to the Alberta Electric System Operator for transmission system access, a critical step in the project's development[1][4]. The AESO is expected to consider the need for the project in early 2025, a process that will include opportunities for public and stakeholder input[1][2]. Public consultation is currently underway, with input being solicited from Clearwater, Lacombe, and Ponoka Counties[1][2].
Following regulatory review, a facilities application will be filed with the Alberta Utilities Commission (AUC), the body responsible for final approval. According to the preliminary project schedule, if the AUC approves the application, construction could begin as early as the third quarter of 2027[3]. Environmental studies, including wildlife, wetland, water course, vegetation, rare plant, and soil assessments required by Alberta Environment and Protected Places, have already been completed[3].
Data Center Connectivity
A key strategic aspect of the Flipi project is its potential to support data center development in the region. Kiwetinohk vice-president of finance for the power division, Craig Parsons, has explicitly highlighted this connection, stating, "We think there's a significant opportunity to bring in large data centres to the province. If the province can be successful in attracting these technology companies to come here that would be a big win"[1][2][3].
This approach aligns with Premier Danielle Smith's position, which supports data center development while insisting that these facilities must provide their own power rather than drain the province's existing grid[1][2]. Parsons emphasized this benefit, noting that the Flipi project "is not sucking power off the grid and pushing prices up"[1][2][3].
Rocky Mountain House Data Center Initiatives
The town of Rocky Mountain House, located within Clearwater County, has begun exploring its potential to host data centers, representing another significant development in the region's technology infrastructure.
Municipal Exploration and Assessment
In January 2025, Rocky Mountain House councillor Ken Moesker introduced a motion to investigate the town's feasibility for hosting a data center[5][6]. The motion, which received council support, directed the town administration to compile initial data and prepare a report on whether the Rocky Mountain House area could be marketed as a data center location[5][6].
Moesker referenced several large data center projects announced across Alberta, including a $750 million facility in Rockyview County, a $4 billion complex in Foothills County near High River, and a $70 billion data center project in Greenview, south of Grande Prairie[5]. He emphasized that the provincial government's strategy for data center development focuses on three key pillars: power capacity, sustainable cooling, and economic development, suggesting that "Rocky Mountain House checks all three boxes"[5][6].
Regional Collaboration Considerations
While exploring data center opportunities, the Rocky Mountain House council discussed potential approaches to development. Several councilors suggested that the best strategy might involve regional collaboration, particularly working with neighboring Clearwater County[5][6]. This approach recognizes the potential benefits of pooling resources and coordinating development across municipal boundaries.
However, Deputy Mayor Dale Shippelt expressed a preference for initially focusing on opportunities within the town itself, stating, "We do have land available in our community and we do need tax base in our community. I think the number one priority should be our community"[6]. This perspective highlights the economic development incentives driving interest in data centers, particularly the potential contribution to the municipal tax base.
Existing Digital Infrastructure in Clearwater County
Clearwater County has already made significant investments in digital infrastructure, establishing a foundation that could support future data center development.
Micro Data Centers and Broadband Initiative
The county has implemented micro data centers, also known as point-of-presence (PoP) sites, as part of its Core Backbone Broadband Internet Plan[7]. These facilities use IOLAN SCG console servers for out-of-band management, enabling administrators to remotely access and manage equipment housed in numerous PoP sites throughout the county[7].
This multi-year initiative aims to deliver high-speed internet connectivity at lower prices to a majority of local residents and businesses[7]. Bradley Welygan, IT System Administrator for Clearwater County, explained that the IOLAN SCG console servers are used "for connectivity to a bunch of Point of Presence sites throughout the county for out-of-band management of the fiber and network equipment"[7].
Federal and Provincial Investment
In June 2024, the federal and provincial governments announced a combined investment of $153 million to connect more rural homes to high-speed internet, with approximately $68 million directed toward the Clearwater County region[8]. This investment is expected to greatly increase connectivity to thousands of households across the area[8].
Alberta's Minister of Technology and Innovation, Nate Glubish, highlighted the economic benefits of increased connectivity, stating, "The businesses started by families who grew up here and want to stay here can stay here. But among those 200,000 folks who chose to move to Alberta last year alone, if they want to come to a beautiful place like Clearwater County, and build a business, they can do it here"[8].
Provincial Context for Data Center Development
The proposals and initiatives in Clearwater County are part of a broader provincial strategy to position Alberta as a leader in data center development, particularly for artificial intelligence applications.
Alberta's Data Center Strategy
Alberta's technology minister has stated that the province hopes to see $100 billion worth of artificial intelligence data centers under construction in the next five years[9][10]. In December 2024, the province announced a "concierge program" for major tech firms looking to navigate the regulatory process and establish operations in Alberta[9].
Technology Minister Nate Glubish has emphasized that Alberta is an ideal location for data centers because its deregulated electricity market allows power generators to strike deals to supply private companies directly[9]. However, he has also made it clear that "anything that compromises the reliability and affordability of Alberta's grid would be a 'no-go zone'"[9].
Growing Provincial Demand
The scale of data center interest in Alberta is substantial. According to industry experts, the total power demand for proposed data centers in the AESO connection queue exceeds 5,000 MW, a significant increase from the approximately 2,000 MW tracked in May 2024[11]. A December 2024 report from the Royal Bank of Canada's Climate Action Institute found that if all data center projects currently going through the regulatory approval process across Canada were approved, they would account for 14% of the country's power needs by 2030[9][10].
Cogeneration Power Facilities in Alberta
While the search results do not specifically mention cogeneration facilities currently proposed for Clearwater County, several examples from other Alberta locations provide context for potential future developments.
Existing Cogeneration Models
The Redwater Cogeneration Plant, operated by TC Energy, has provided approximately 46 megawatts of electricity to Alberta since 2001[12]. This facility uses a blend of natural gas and regeneration gas to fuel its gas turbine, with the regeneration gas created through the fractionation process used by the plant's primary client, Williams Energy[12]. The plant produces 40 megawatts of electricity, with an additional 60 megawatts of thermal energy[12].
Other examples include the Empress Cogeneration Power Facility in southern Alberta, which uses natural gas to generate up to 45 megawatts of electrical power[13], and Suncor's cogeneration units at its base plant, which replaced coke-fired boilers and can provide up to 800 MW of power while reducing greenhouse gas emissions by 25%[14].
Natural Gas Infrastructure in Clearwater County
A related development in Clearwater County is a proposed $6 million natural gas access project for Nordegg[15]. Currently, Nordegg residents and businesses only have heating oil, propane, or electric heat as options[15]. Clearwater County has committed $1.4 million to this project, with the contractor, Rocky Gas Co-op, committing the same amount[15].
This natural gas infrastructure could potentially support future cogeneration facilities in the region, as natural gas is a common fuel source for such plants. The project has received support from local officials, with Rimbey-Rocky Mountain House-Sundre MLA Jason Nixon advocating for it in the legislature[15].
Conclusion
Clearwater County is strategically positioned to become a significant player in Alberta's emerging data center economy, supported by proposed power generation projects like Kiwetinohk Energy's Flipi Gas Fired Generation Project. The region's existing investments in digital infrastructure, combined with provincial and federal support for connectivity, create favorable conditions for data center development.
While specific cogeneration facilities have not yet been proposed for Clearwater County, examples from elsewhere in Alberta demonstrate the viability of such projects. The county's exploration of natural gas infrastructure suggests potential for future cogeneration development that could further support data center operations.
As Alberta pursues its ambitious goal of attracting $100 billion in data center investments, Clearwater County's initiatives align well with provincial strategies emphasizing self-sufficient power generation for data centers. The next few years will be crucial in determining whether these proposals move from planning to implementation, potentially transforming the region's economic and technological landscape.
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- https://www.pipestoneflyer.ca/home2/460-mw-power-plant-proposed-for-central-alberta-7682177
- https://www.rimbeyreview.com/home/460-mw-power-plant-proposed-for-central-alberta-7682177
- https://www.lacombeexpress.com/home2/460-mw-power-plant-proposed-for-central-alberta-7682177
- https://www.aeso.ca/grid/transmission-projects/flipi-gas-fired-generation-project-connection-2454
- https://945rewindradio.ca/2025/01/17/rocky-mountain-house-to-explore-potential-for-data-center/
- https://www.reddeeradvocate.com/home/rocky-mountain-house-exploring-data-centre-potential-7770799
- https://dcnnmagazine.com/news/product/clearwater-county-perle/
- https://rdnewsnow.com/2024/06/17/feds-province-announce-high-speed-internet-investment-in-clearwater-county-region/
- https://edmonton.citynews.ca/2025/02/26/alberta-power-plant-data-centre/
- https://globalnews.ca/news/11050325/capital-power-genesee-alberta-data-centre/
- https://calgaryherald.com/opinion/columnists/varcoe-huge-data-centre-projects-alberta-power-lineup
- https://www.tcenergy.com/operations/power/redwater-cogeneration-plant/
- https://majorprojects.alberta.ca/details/Empress-Cogeneration-Power-Facility/4070
- https://www.majorprojects.alberta.ca/details/Suncor-Power-Cogeneration-Units/3918
- https://945rewindradio.ca/2024/09/04/7205/
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