Data Center Power Capacity Reprices Amid Scarcity
Summary
TransAlta and Enlight say US data center power scarcity makes ready generation scarce: TransAlta lifts Boreal to 1.6 GW; Enlight pays $20M to reprice 439 MW.
TransAlta Corporation (TAC) and Enlight Renewable Energy (ENLT) both said on their third-quarter earnings calls on November 3, 2026, that data center power scarcity in the US is making ready-to-deliver generation and grid interconnection rights scarce, and both are now putting those assets back on the table to negotiate long-term contracts at higher prices [1][2].
Data centers need power they can connect to quickly
Before a large data center can run, it has to secure electricity. The user signs a power purchase agreement (PPA, a multi-year contract that fixes how much power is supplied and at what price) with a generator or developer, and the project must wait in the grid queue and complete interconnection before power actually flows. Generators used to price mainly off generation cost and market power prices; land, a grid connection point and permits were rarely priced on their own. TransAlta's CEO said on the call that Texas, Pennsylvania and New York all have moratoriums while power demand is not abating, and that near-term available power falls far short of demand [1]. In August, the Texas governor ordered a pause on data center approvals and directed the grid operator to audit data centers in the interconnection process [3]. When new generation cannot get through the queue, assets that already hold interconnection and permits, or even idle units, become the fastest way for a large customer to get power. These assets sit across different grids, so any company that holds them may face the same repricing opportunity.
Idle units get a bigger role and legacy contracts are terminated early
TransAlta is offering underused thermal units in Alberta to data center load that cannot get connected in the US. The company said Alberta's data center regulations issued in June recognized that underutilized generation can serve data center load, which allowed it to raise the planned scope of its Boreal project to 1.6 GW from 1 GW [1]. It has also kept the option to return mothballed units to service as data center load develops in the province [1].
Enlight's US arm, Clenera, has taken its Gemstone and Rustic Hills projects in PJM and MISO (the two large grid operators covering the eastern and central US) back to market. The two projects total 439 factored megawatts, and the decision required $20 million in termination fees, which management believes it will more than recover with fresh contracts in the current high-demand environment [2].
Capital Power (CPX), also in Alberta, said on its November 2 call that it has signed about 2 GW of contracts since 2025 at materially higher prices and raised its EBITDA (earnings before interest, taxes, depreciation and amortization) upside to 1.25 billion from 1 billion [4]. The three companies operate in different markets with different asset types, but they are doing the same thing: repricing generation and grid positions they already control as scarce goods.
Contracted earnings rise while legacy buyers lose cheap supply
Bargaining power in the power sector is shifting from "what does it cost to generate" toward "how fast can power be delivered." Companies holding ready sites, interconnection rights and spare units gain leverage. Once they sign long-term contracts, contracted earnings rise and the share of power sold at market prices falls, while buyers that held older low-priced contracts may lose that below-market supply.
This view has clear limits. Near-term Alberta power prices are still weak, and TransAlta is mothballing its Battle River units even as it courts data centers [1]. Capital Power also said the decision on Alberta's Phase 2 large-load connections has been delayed, and swaps of turbine delivery slots suggest equipment scarcity may be easing [4]. Three indicators are worth tracking: whether new contract prices on Enlight's 439 MW cover the termination fees, the outcome of Alberta's Phase 2 allocation, and whether Boreal signs a firm customer contract.
Companies exposed to this change
- Clearway Energy (CWEN): A US wind and solar operator that said on its August call it broke legacy hedges on two wind projects and recontracted them at a higher 15-year fixed price [5]. It sits at the same step as Enlight's renegotiation of legacy contracts; whether it can move more of its existing contracts to higher prices still needs to be confirmed by later disclosures.
- Pembina Pipeline (PBA): A Canadian oil and gas pipeline company building the Greenlight gas-fired power plant with Kineticor, with a first phase of about 900 MW aimed at a data center customer [6]. It competes with TransAlta and Capital Power for the same pool of Alberta large-load connection capacity.
- Ovintiv (OVV): A natural gas producer in Canada's Montney basin that has described the Western Canada data center build-out as a future outlet for gas [7]. If Alberta's gas units move to running at high load for long periods, in-province gas use would rise, but there is no price data yet to support this.
Sources
[1] Drillr · TransAlta Corporation (TAC) · 2026-11-03 · Earnings call
When you look at The moratoriums that are out there today, you just pick a few markets, for example, there's moratoriums in Texas, Pennsylvania, New York. And we know is the demand for power is not abating. And we've talked about this before, where there's just so much demand, far exceeds the amount of power that's kind of available almost in the near term. that all of a sudden when you look at Alberta here where there's obviously strong policy support from the government, strong support from the ASO, we are the only jurisdiction that really I'd say is long power within North America. So again, we talked about speed to power. I think that there is a real opportunity here for Alberta.
[2] Drillr · Enlight Renewable Energy (ENLT) · 2026-11-03 · Earnings call
[3] beincrypto · Texas governor pauses data center approvals and orders ERCOT audit of the interconnection queue · 2026-08-07 · News report · https://beincrypto.com/texas-data-center-rules-grid-pause/
[4] Drillr · Capital Power (CPX) · 2026-11-02 · Earnings call
[5] Drillr · Clearway Energy (CWEN) · 2026-08-05 · Earnings call
[6] Drillr · Pembina Pipeline (PBA) · 2026-05-08 · Earnings call
[7] Drillr · Ovintiv (OVV) · 2026-07-24 · Earnings call
This is only meant to help you spot industry changes and companies that may be overlooked - not a stock recommendation.