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    The Bull Case For Capital Power (TSX:CPX) Could Change Following Long-Term Meta Data Centre Deal – Learn Why

    Simply Wall St·07/22/2026 09:31:11
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    • In July 2026, Capital Power Corporation announced it had entered into a long-term (over 10 years) Energy Supply Agreement to provide 250 megawatts of capacity and energy from its Alberta fleet to support Meta Platforms Inc.’s planned data centre in Sturgeon County, expected to come online in the second half of 2028.
    • This agreement with an AA-/Aa3-rated counterparty is structured to deliver stable, long-term contracted cash flows while preserving Capital Power’s flexibility to further optimize its Genesee site in Alberta.
    • We’ll now examine how this long-term 250 megawatt agreement with Meta could influence Capital Power’s investment narrative and future cash-flow profile.

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    Capital Power Investment Narrative Recap

    To own Capital Power, you need to believe that long term contracted cash flows can offset recent earnings volatility and funding needs for growth. The Meta Energy Supply Agreement supports that thesis by adding an investment grade counterparty and improving contract coverage, but it does not fundamentally change the near term risks around thin profit margins, weak interest coverage, and a dividend that is not well covered by earnings.

    The Meta deal also sits alongside Capital Power’s recent completion of the Genesee repowering project, which expanded capacity and reduced emissions at one of its core Alberta assets. Together, these moves underline how the company is leaning on its Alberta portfolio and contract wins to support its growth narrative, even as investors weigh balance sheet pressure, lower recent profitability, and execution risk around new and existing projects.

    However, investors should also be aware of the risk that weak interest coverage and an uncovered dividend could become more of a constraint if...

    Read the full narrative on Capital Power (it's free!)

    Capital Power's narrative projects CA$4.3 billion revenue and CA$591.7 million earnings by 2029.

    Uncover how Capital Power's forecasts yield a CA$77.12 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    TSX:CPX 1-Year Stock Price Chart
    TSX:CPX 1-Year Stock Price Chart

    Three Simply Wall St Community valuations for Capital Power range from CA$57.14 to CA$131.42, underscoring how far apart individual views can be. When you set that against the company’s reliance on long term contracts like the new Meta agreement, it highlights why many readers may want to compare several different growth and risk assumptions before forming a view on the stock.

    Explore 3 other fair value estimates on Capital Power - why the stock might be worth 21% less than the current price!

    Reach Your Own Conclusion

    Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.