TransAlta's stock soared 7.30% during intraday trading on Friday, reflecting strong investor optimism following a series of strategic announcements.
The surge is attributed to the company entering into a memorandum of understanding with Canada Pension Plan Investment Board and Brookfield to advance a major data centre development at its Keephills site in Alberta. The framework includes an initial long-term power purchase agreement for approximately 230 MW, with the potential for the project to scale up to 1 Gigawatt of load, positioning TransAlta as the exclusive site and power provider.
Concurrently, TransAlta announced an 8% increase to its common share dividend, marking the seventh consecutive annual dividend increase, and provided its 2026 financial outlook, expecting adjusted EBITDA between $950 million and $1,050 million. These positive developments appear to have overshadowed the quarterly adjusted net loss reported in the company's earnings release, driving significant investor confidence.