KALiNA Power and Crusoe partner to develop AI data centres in Alberta

KALiNA Power Limited, through its Canadian subsidiary KALiNA Distributed Power Limited (KDP), has signed a multi-year Framework Agreement with Crusoe to develop multiple AI data centres in Alberta, Canada. The agreement is a significant step toward integrating near-zero-emissions power generation with artificial intelligence infrastructure, marking a milestone in sustainable energy solutions for high-performance computing.

Crusoe, a leader in climate-aligned cloud computing, will own and operate AI data centres, while KDP will provide affordable power through Power-CCS plants, its proprietary near-zero-emissions natural gas-fired power plants equipped with carbon capture and sequestration (CCS) technology. This partnership ensures that AI operations in Alberta will be powered efficiently while maintaining environmental compliance.

By leveraging Alberta’s energy and telecommunications infrastructure, the agreement is expected to enable the rapid scaling of low-emission AI computing, addressing the growing power demands of data-intensive applications.

Why Is Alberta a Key Location for AI-Powered Energy Solutions?

Alberta’s energy infrastructure provides a strategic advantage for AI-focused data centre development. The province’s extensive electricity transmission networks, natural gas pipelines, fibre optic connectivity, and carbon sequestration hubs create an optimal environment for establishing power-intensive AI operations.

Under the agreement, the initial co-sited projects will be developed at KDP’s three key sites:

• Myers Energy Park
• Alsike Energy Park
• Crossfield Energy Park (newly secured)

Each location has been selected based on its access to critical infrastructure, ensuring cost-effective energy delivery and seamless integration with Crusoe’s AI data centres. This strategic siting not only optimises operational efficiency but also aligns with Alberta’s self-supply regulatory requirements.

Beyond these locations, KDP is advancing additional projects at Gilby Power Park and a new site in Clairmont, where Crusoe will have the option to contract power via Virtual Power Purchase Agreements (VPPAs), even for data centres that are not physically co-sited with power plants.

How Will the Power Purchase Agreements Benefit KALiNA and Crusoe?

A core component of the Framework Agreement is the establishment of long-term Power Purchase Agreements (PPAs), which will ensure stable, long-term cash flow for KALiNA Power. Each AI data centre will receive power under an indicative long-term tolling PPA, designed to provide consistent, affordable power with financial security.

The PPAs, expected to be at least 15 years in duration, will be backed by investment-grade or otherwise creditworthy counterparties. These agreements provide the necessary financial foundation for KDP to fund and operate its Power-CCS plants, supporting the growth of Alberta’s AI infrastructure while maintaining environmental commitments.

As part of the agreement, Crusoe will also finance certain electrical interconnection and gas supply security payments for each project, ensuring a streamlined development process.

What Steps Are Being Taken to Advance the Projects?

To facilitate the rapid deployment of these AI-powered data centres, KDP has already completed environmental desktop and biophysical studies at Myers Energy Park and Alsike Energy Park, with assessments for Crossfield Energy Park scheduled for 2025. These studies ensure compliance with regulatory requirements and assess the feasibility of large-scale energy integration.

KDP has also filed self-supply and export System Access Service Requests (SASRs) with the Alberta Electric System Operator (AESO) for all three co-sited locations. This regulatory step is essential for securing grid access and ensuring seamless power distribution.

In addition to the initial three projects, KDP continues to develop Gilby Power Park, where it has already secured site control and completed environmental assessments. The Gilby and Clairmont projects are expected to operate under virtual power purchase agreements, broadening the scope of KDP’s AI energy solutions beyond traditional co-sited models.

What Does This Agreement Mean for the Future of AI Energy Solutions?

The partnership between KALiNA Power and Crusoe signals a transformative shift in how AI infrastructure is powered. By combining near-zero-emissions natural gas energy with carbon capture technology, the agreement lays the foundation for sustainable AI data centre expansion in Alberta and beyond.

KALiNA Power’s Managing Director, Ross MacLachlan, emphasised the significance of the deal, stating:

“Our collaboration with Crusoe is designed to keep pace with AI data centre market demand while leveraging Alberta’s unique energy framework. This agreement enables the development of three initial projects while creating a pathway for future expansion, including virtual power purchase agreements for additional sites. With near-zero-emissions natural gas power and carbon capture, we are positioning ourselves at the forefront of sustainable AI infrastructure.”

The deal underscores the growing need for low-emission AI energy solutions, as tech-driven industries seek to balance high-performance computing needs with environmental responsibility. By integrating AI data processing with sustainable power generation, KALiNA and Crusoe are setting a precedent for future AI-powered energy partnerships worldwide.

As the demand for AI data processing accelerates, co-sited AI energy solutions will play a crucial role in ensuring that next-generation computing remains cost-effective, environmentally compliant, and scalable.