TransAlta Targets Data Center Expansion and Raises Dividend While Talen Energy Reports Loss

2026-02-28 companies

Calgary, Friday, 27 February 2026.
TransAlta secures a strategic data center partnership with Brookfield and raises dividends, signaling confidence despite sector challenges highlighted by Talen Energy’s $219 million net loss for 2025.

TransAlta Pivots to Data Centers Amid Market Optimism

On Friday, February 27, 2026, TransAlta Corporation (TSX: TA; NYSE: TAC) signaled a significant strategic shift by announcing a memorandum of understanding (MOU) to develop a data center at its Keephills power plant west of Edmonton [2]. The agreement, formed in partnership with Canada Pension Plan (CPP) Investments and Brookfield, initially targets a power purchase agreement of approximately 230 megawatts (MW), with the potential to expand to 1 gigawatt (GW) of load [4]. This move aligns with the Alberta government’s broader ambition to attract $100 billion in data center investment by 2030 [2]. Markets responded positively to the announcement, with TransAlta shares trading up more than 5% on the Toronto Stock Exchange by Friday afternoon [2]. The company expects to finalize the definitive agreement later in 2026 [2].

Dividend Hike Signals Confidence Despite Q4 Loss

Alongside its strategic expansion, TransAlta demonstrated confidence in its cash flow generation by raising its common share dividend. The Board approved an 8% increase, bringing the annualized dividend to $0.28 per share, up from the previous level [4][5]. This increase comes despite the company reporting a net loss attributable to common shareholders of $62 million for the fourth quarter of 2025, a slight improvement from the $65 million loss reported in the same period a year earlier [2]. On a per-share basis, the loss narrowed to $0.21 compared to $0.22 in the prior year [2]. For the full year of 2025, TransAlta reported adjusted EBITDA of $1.104 billion and free cash flow of $514 million, or $1.73 per share [4]. Looking ahead, the company has issued 2026 guidance projecting adjusted EBITDA between $950 million and $1.050 billion [4]. This transition period will also see a leadership change, as current CEO John Kousinioris is set to retire on April 30, 2026, to be succeeded by CFO Joel Hunter [4].

Talen Energy Navigates Net Losses While expanding Portfolio

In parallel developments within the independent power producer sector, Talen Energy Corporation reported its full-year 2025 results on February 26, 2026, revealing a complex financial picture [1]. The company posted a GAAP net loss attributable to stockholders of $219 million for the year ended December 31, 2025, a sharp contrast to the net income of $1.013 billion recorded in 2024 [1]. Despite the bottom-line loss, Talen maintained robust operational performance with an Adjusted EBITDA of $1.035 billion and Adjusted Free Cash Flow of $524 million [1]. The company has been aggressively expanding its footprint, having completed the acquisitions of the Freedom and Guernsey facilities in November 2025, which added approximately 2.8 GW of generating capacity [1]. Furthermore, on January 15, 2026, Talen entered into a definitive agreement to acquire the Waterford Energy Center, Darby Generating Station, and Lawrenceburg Power Plant for $3.45 billion, a move expected to close in the second half of 2026 [1]. Talen reaffirmed its 2026 guidance, projecting Adjusted EBITDA in the range of $1.75 billion to $2.05 billion [1].

Sources

Energy Infrastructure Corporate Earnings