Scotiabank sees Alberta data center opportunities boosting Canadian power producers

Bank of Nova Scotia

23/09/2025 13:40

** Scotiabank remains bullish on North American utilities, with outlook for growth being more visible and stronger in the U.S.

** Brokerage believes that Alberta data center announcements could see the Canadian independent power producers outperform and make up some lost ground

** "We believe Alberta is an attractive geography for data centers given it has over 1.2 GW of excess capacity, produces inexpensive power and has a relatively supportive political environment" - brokerage

** Scotiabank sees TransAlta TA.TO as having more torque to the Alberta data center theme than Capital Power CPX.TO, which positions it well through the balance of 2025

** Brokerage adds that it favors IPPs over the renewables and utilities as they have more visible and material catalysts (M&A, recontracting, higher merchant pricing) as well as positive investment sentiment

 (Reporting by Pooja Menon in Bengaluru)

 ((Pooja.Menon@thomsonreuters.com;))