TransAlta Enters Memorandum of Understanding for Data Centre Development at Keephills Site with Potential to Scale Up to 1 GW

Rhea-AI Summary

TransAlta (NYSE: TAC) entered a Memorandum of Understanding on Feb 27, 2026 with CPP Investments and Brookfield to advance a data centre at its Keephills site in Alberta.

The MOU includes an initial long-term power purchase agreement for ~230 MW, exclusive site and power-provider status, and evaluation of additional development aggregating up to 1 GW, all subject to regulatory approvals and definitive binding agreements.

Positive

• Initial long-term PPA for approximately 230 MW
• Exclusive site and power provider role at Keephills
• Potential scale evaluated up to 1 GW of load
• Leverages existing infrastructure (transmission, gas, water, on-site generation)

Negative

• All development is subject to regulatory approvals
• Project progress depends on parties reaching definitive binding agreements

Key Figures

Initial PPA capacity: approximately 230 MW Potential total load: up to 1 GW

2 metrics

Initial PPA capacity approximately 230 MW Initial long-term power purchase agreement at Keephills data centre project

Potential total load up to 1 GW Potential aggregate data centre load at Keephills across phased development

Market Reality Check

Price: $13.03 Vol: Volume 2,555,705 is 1.8x ...

high vol

$13.03 Last Close

Volume Volume 2,555,705 is 1.8x the 20-day average, indicating elevated interest ahead of this news. high

Technical Shares at $13.03 are trading slightly above the $12.89 200-day MA, after a 1.32% gain.

Peers on Argus

TAC is up 1.32% on strong volume while momentum peers ENLT and KEN are both down...

2 Down

TAC is up 1.32% on strong volume while momentum peers ENLT and KEN are both down over 2%, and core utilities peers show mixed moves, suggesting a company-specific reaction to the data centre MOU.

Historical Context

5 past events · Latest: Jan 27 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 27	Earnings call logistics	Neutral	+0.9%	Announced timing and access details for Q4 and 2025 results call.
Dec 18	Asset mothball notice	Neutral	-0.3%	Temporary mothballing of Sheerness Unit 1 to preserve optionality and aid data centre strategy.
Dec 17	Regulatory operating order	Neutral	-5.7%	DOE required Centralia Unit 2 to remain available for 90 days through March 16, 2026.
Dec 12	Dividend declaration	Positive	-1.2%	Declared common and preferred share dividends for Q1 2026 in Canadian dollars.
Dec 09	Long-term tolling deal	Positive	+3.5%	Signed 16-year 700 MW tolling agreement to convert Centralia Unit 2 from coal to gas.

Pattern Detected

Recent news has usually driven modest single-digit moves, with larger reactions reserved for major long-term contracts or regulatory surprises.

Recent Company History

Over the last few months, TransAlta has focused on operational repositioning and long-term contracting. A Dec 9, 2025 deal for 700 MW at Centralia supported coal-to-gas conversion and drew a 3.54% gain. Dividend declarations on Dec 12, 2025 were followed by a small decline, while regulatory actions around Centralia triggered a larger -5.67% move. The new Keephills data centre MOU extends this strategy of pairing generation assets with long-duration load growth, echoing earlier capacity agreements and its stated data centre strategy.

Market Pulse Summary

This announcement outlines a Keephills data centre MOU where TransAlta would be exclusive site and p...

Analysis

This announcement outlines a Keephills data centre MOU where TransAlta would be exclusive site and power provider, anchored by an initial ~230 MW power purchase agreement and potential to scale to 1 GW of load. It builds on earlier steps like the 700 MW Centralia tolling deal and asset repositioning tied to its data centre strategy. Investors may watch for definitive agreements, regulatory approvals, and capital plans as the phased development framework evolves.

Key Terms

memorandum of understanding, power purchase agreement

2 terms

memorandum of understanding regulatory

"it has entered into a Memorandum of Understanding (MOU) with Canada Pension Plan"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

power purchase agreement financial

"including an initial long-term power purchase agreement for approximately 230 MW"

A power purchase agreement (PPA) is a long-term contract in which a buyer agrees to purchase electricity from a generator at an agreed price and schedule, similar to a multi-year subscription for power or a long-term lease of an energy source. Investors care because PPAs provide predictable revenue and cash flow for the generator, reduce market-price exposure, and shift credit and performance risk to the buyer, all of which affect valuation, financing and perceived investment stability.

AI-generated analysis. Not financial advice.

CALGARY, Alberta, Feb. 27, 2026 (GLOBE NEWSWIRE) -- TransAlta Corporation (TSX: TA) (NYSE: TAC) (TransAlta or the Company) is pleased to announce that it has entered into a Memorandum of Understanding (MOU) with Canada Pension Plan Investment Board (CPP Investments) and Brookfield to advance a data centre development in Alberta, for which TransAlta will be the exclusive site and power provider.

The MOU establishes a framework for phased development at the Company's Keephills site in Parkland County, including an initial long-term power purchase agreement for approximately 230 MW and the evaluation of opportunities for additional development aggregating up to 1 GW of load. All such development is subject to regulatory approvals and the parties reaching definitive binding agreements.

"The Keephills site provides a strategic platform that leverages TransAlta's large zoned land position, existing transmission, natural gas and water infrastructure, as well as on-site generation to support long-term project scale," said John Kousinioris, President and Chief Executive Office of TransAlta. "We are very pleased to be working with CPP Investments and Brookfield and to serve as the exclusive site and power provider for this project. As experienced, global infrastructure investors, CPP Investments and Brookfield have the capability to deliver projects of this size and complexity. We look forward to working together to advance digital infrastructure capacity and unlock future investment in Alberta."

About TransAlta Corporation:

TransAlta is one of Canada’s largest publicly traded power generators, delivering reliable electricity across Canada, the United States and Western Australia. For more than 100 years, our people have safely operated and evolved essential energy infrastructure that powers customers and communities. Our technology-diverse portfolio and disciplined execution allow us to deliver dependable power across evolving energy systems. We take a practical, responsible approach to meeting today’s energy needs while building for what comes next.

For more information about TransAlta, visit our web site at transalta.com.

Cautionary Statement Regarding Forward-Looking Information

This news release includes "forward-looking information," within the meaning of applicable Canadian securities laws, and "forward-looking statements," within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively referred to herein as "forward-looking statements"). Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as "may", "will", "believe", "expect", "estimate", "anticipate", "intend", "plan", "forecast", "continue" or other similar words. In particular, this news release contains forward-looking statements about the following, among other things: the MOU and its framework for phased development of the Keephills site, including the potential execution of a long-term power purchase agreement for 230MW; the evaluation of opportunities for additional phases of development; and the potential for such additional phases of development to aggregate to 1GW of load.

Forward-looking statements in this news release are intended to provide the reader information about management's current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements are subject to important risks and uncertainties and are based on certain key assumptions. All forward-looking statements reflect TransAlta's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking statements, you should not put undue reliance on forward-looking statements and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking statements due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to our most recent MD&A and Annual Report, filed under TransAlta's profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov.

For more information:

Investor Inquiries:	Media Inquiries:
Phone: 1-800-387-3598 in Canada and US	Phone: 1-855-255-9184
Email: investor_relations@transalta.com	Email: ta_media_relations@transalta.com

FAQ

What did TransAlta (TAC) announce on Feb 27, 2026 about the Keephills data centre?

TransAlta announced an MOU with CPP Investments and Brookfield to advance a Keephills data centre development. According to the company, the MOU includes an initial ~230 MW long-term PPA and evaluation of up to 1 GW of additional load, subject to approvals.

How much power does the initial PPA cover in TransAlta's (TAC) Keephills deal?

The initial agreement covers approximately 230 MW of power under a long-term PPA. According to the company, this is the first phase with opportunities being evaluated to aggregate additional capacity up to 1 GW.

Who are TransAlta's (TAC) partners on the Feb 27, 2026 Keephills MOU?

TransAlta is partnering with CPP Investments and Brookfield under the MOU for Keephills data centre development. According to the company, these partners will work with TransAlta while the company serves as exclusive site and power provider.

Does the TransAlta (TAC) Keephills MOU guarantee the full 1 GW buildout?

No, the 1 GW potential is under evaluation and not guaranteed. According to the company, all development is contingent on regulatory approvals and the parties executing definitive binding agreements.

What infrastructure at Keephills supports TransAlta's (TAC) proposed data centre?

Keephills offers large zoned land, existing transmission, natural gas and water infrastructure, and on-site generation. According to the company, these assets provide a strategic platform to support long-term project scale and reliability.

What are the main conditions for the TransAlta (TAC) Keephills project to proceed?

The project requires regulatory approvals and finalized definitive agreements between the parties. According to the company, advancement beyond the MOU depends on satisfying those conditions and executing binding contracts.