South of Pincher Creek, on an industrial site that once housed a natural gas processing plant, Captus Generation is exploring plans for a natural-gas-fired power plant and an AI data centre that could bring a new form of digital infrastructure to the region.
The Calgary-based company wants to develop the project on an 825-acre site about 20 kilometres south of Pincher Creek. Under the concept, Captus would build a power plant, while a technology partner would build and operate the data centre using electricity generated on site.
Many details — including the size of the facility, who would operate it, its final design, water requirements, traffic impacts and when construction could begin — remain undetermined.
Laura McKinnon, the MD of Pincher Creek’s development officer, says representatives from Captus have met with council several times to discuss the company’s operations, but no application is before the municipality.
The distinction is important because the MD changed its land-use bylaw last year to establish a specific process for data centre developments, including requirements for public engagement and technical information before a decision can be made.
About Captus Generation
Captus Generation was founded in early 2024 by a group of midstream energy professionals under CEO Harry Andersen, who had previously served as chief operating officer at Pembina Pipeline. The company initially explored building a natural-gas-fired power plant on the site and pursuing an industrial partner to use the electricity.
In October 2025, Captus was acquired by Summit Point Capital LP, a private equity firm the company describes as experienced in major infrastructure projects across Alberta and Saskatchewan. Andersen resumed his role as CEO, and Eric Gallie joined as chief financial officer. Summit Point Capital currently funds the company’s operating costs.
Paul Connolly, Captus vice-president of commercial development, says the company sees the project as a continuation of the region’s industrial history.
“We are building on the region’s energy legacy of 75 years of natural gas production,” he says, adding that both the power plant and data centre would be privately funded, with no government subsidies or tax breaks.
The proposal
Captus says the project is being considered on an industrial property already designated for heavy industrial use, with existing natural gas and power infrastructure. Electricity generated by the plant would be sold to the technology company operating the data centre.
Laurie Stretch, Captus spokesperson, says plans shifted toward a data centre after the company identified the property as suitable for digital infrastructure.
“The critical next step is to sign an agreement with a technology partner,” Connolly says.
Negotiations are underway, he says, but a technology partner has not been finalized.
The power plant would be built specifically to supply the data centre. Captus says it would be connected to the provincial electricity grid for backup, rather than relying on the grid for its primary power supply.
Stretch says the first phase of the power facility could be around 400 megawatts, although the final capacity will depend on the requirements of the eventual data centre partner.
Power supply and environmental claims
Both Connolly and Stretch say the project would generate its own electricity rather than draw on Alberta’s grid — meaning, Captus says, it would not put upward pressure on local power prices, a concern raised about data centres elsewhere.
Any surplus power could be sold to the grid.
Connolly says the project would not draw on freshwater sources. Instead, cooling would rely on non-potable saline water drawn from deep underground and circulated through a closed-loop system.
“Many of the questions we’re being asked stem from mistakes in other jurisdictions that are not comparable to the Captus opportunity,” he says.
Connolly further says the power plant would use modern, high-efficiency natural gas turbines producing lower emissions than older facilities, and that carbon capture and storage could be added later.
He says environmental studies are underway to confirm the project’s impacts, and that Captus intends to meet or exceed regulatory standards.
The company says the development would not remove agricultural land from production, since the site already carries that industrial designation, and that it would have no impact on the Waterton Reservoir or other regional water bodies.
Those environmental claims would be subject to further study and regulatory review as the project advances.
Economic case and regulatory groundwork
Captus says the project represents a potential investment of around $1 billion, along with several hundred construction jobs and several dozen permanent operating positions once complete.
Connolly says the development would also boost municipal tax revenue supporting local services and infrastructure, though the company cannot yet calculate a specific figure without a finalized data centre design.
Ahead of any formal application, the MD of Pincher Creek adopted an amendment to its land-use bylaw in September 2025 specifically addressing data centre operations. McKinnon says the change was made pre-emptively, in step with a broader trend across Alberta municipalities, rather than in response to a specific proposal.
According to Land Use Bylaw Amendment 1361-25, any future data centre application would have to seek redesignation to direct control.
The bylaw also requires the applicant to hold a public open house and submit detailed plans covering water use and disposal, employee numbers, roads and traffic volumes, any associated power plant or battery storage, weed management, reclamation, historic resources, noise, fencing and security lighting.
A noise impact assessment is required as well.
McKinnon says the municipality regularly updates its land-use bylaw to prepare for emerging development trends, pointing to recent amendments covering gravel pits, irrigation dugouts and short-term rental accommodations.
The requirements are not exhaustive and council can request additional information or studies.
What remains unknown
Captus has not finalized the project’s overall size or electrical demand, nor identified a data centre operator. That uncertainty extends to the data centre’s design, schedule and operating requirements.
Connolly says Captus expects to file for regulatory approval with the Alberta Utilities Commission once the technology partnership is secured.
The AUC process would be separate from the municipality’s land-use approval process.
Public engagement to come
Captus first engaged with the community in 2024, before the data centre concept had been finalized. The company held presentations with the MD and Town of Pincher Creek and hosted an information session at Twin Butte Community Hall in May 2024.
Stretch says Captus later went quiet while its ownership situation was being resolved.
The company has since restarted its community outreach through newsletters, website updates and discussions with the municipality. More information is available online at captusgeneration.com, where residents can subscribe for updates.
Another community session will be required through the AUC process.
The company also plans further engagement once a technology partner is selected and residents can be shown more specific information about what is being proposed.
For now, there is no confirmed construction date. Connolly says the company cannot estimate one until a technology partner is secured and the scope of the project is established.
For the MD, the next significant step is a formal development application.
Until one is submitted, McKinnon says, council has no proposal before it to approve or reject.
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Correction: Captus Generation data centre project
Shootin’ the Breeze wishes to correct information in the related article Conservation Group Demands Scrutiny of AI Data Centres, published in the Aug. 12 issue (not the article above).
The story incorrectly stated that Captus Generation had been acquired by Gryphon Digital Mining Inc. Captus announced in January 2025 that it had agreed to be acquired by Gryphon, but in August 2025 it announced the transaction would not proceed, and the purchase agreement was terminated. The company remained under the ownership of BTG Energy and West Lake Energy Corp.
In October 2025, Captus Generation confirmed it had been acquired by Summit Point Capital LP, a private equity group.
The story also described the project’s scope and details based on a news release issued by Gryphon Digital Mining. Those details reflected Gryphon’s plans for the site and do not represent Captus Generation’s current proposal.
We sincerely apologize to Captus Generation and our readers for the error.
The incorrect information was included based on several published news reports, as well as a news release that appeared on Captus Generation’s website at the time of our reporting. Before publication, we made several attempts to contact Captus Generation for comment but were unable to reach the company.
We have since contacted Captus Generation again and have included the company’s response and perspective in our updated reporting on the proposed project, Early-Stage AI Data Centre Plans Take Shape South of Pincher Creek.
We regret the error and are committed to ensuring our reporting is accurate, fair and balanced.