AI data centre, power plant proposed for Olds awaiting further decision

Synapse intends to provide what it calls ‘behind-the-metre’ power generation from a one-gigawatt campus comprised of 10 100MW data centres.

In all, it will cover 2,000,000 square feet, according to the Synapse website.

Notably, the company’s first application to the AUC was closed in March, with the AUC clarifying that’s not the same thing as it being ‘denied’ or ‘rejected.’

In a closure confirmation letter to Synapse, the AUC notes the application was for a 1,400-megawatt (not 1,000) natural gas-fired power plant.

The letter stated that the application contained numerous deficiencies, adding, however, that it was not making a determination on the project’s merits.

Among the deficiencies: an environmental evaluation with missing information, and that includes conclusions relating to wildlife and wetlands made from incomplete field studies conducted during winter.

And although Synapse stated that the project is being designed with the intent of being a permanent fixture, with a life expectancy in excess of 100 years, it did not provide a reclamation security plan.

A new application was submitted by Synapse to the AUC on April 3, and Synapse notes in a backgrounder document (see below) why it chose to try again.

“The Town only wants data centre development if it can be done responsibly. No one has all the information, and it is premature to make a judgment until the proper experts assess the engineering reports, emissions studies, noise, impact assessments, and emergency response plans,” says Mayor Daley.

“A lot of the criticisms and fears we have been hearing locally are largely based on the American experience with data centres. That does not diminish the real questions and concerns people have about noise, emissions, and water usage, but the Alberta regulatory environment, climate, power generation, water usage technology, to name a few, differ substantially to what the USA has been experiencing.”

Daley notes Alberta power gas plants and other large-scale facilities like this have been regulated for many years, and that he’s confident the processes Alberta has established will ensure that any approved project would be a safe one.

“Perhaps the most telling difference is on water use, where the proposals we have seen are expected to use about two to three per cent of the town’s water supply each month. As a comparison, the former cannabis plant in Olds used roughly double this amount monthly,” Daley points out, referring to the announced closure of a Sundial Growers Inc. facility in late 2023, after five years in operation.

“The town has the water capacity in its storage and distribution systems, and the regional water services commission has confirmed its ability to meet the projected demand.”

In a late April media release, the Alberta NDP claimed that they had learned two data centres, including the Synapse project in Olds, would not require complete provincial environmental impact assessments.

“Data centres have the potential to bring billions of investment dollars into Alberta. But in order for them to succeed, there needs to be community buy-in with trust and transparency,” said Nathan Ip, Technology and Innovation critic, and Sarah Elmeligi, Environment and Protected Areas critic, in a joint comment.

“Residents of rural Alberta, First Nations and other stakeholders have raised serious concerns about the impacts of these projects on our water and the environment.”

In a statement from the Ministry of Environment and Protected Areas to rdnewsNOW, the ministry says the NDP is confused and being misleading.

“No data centre project has been allowed to bypass an environmental impact assessment (EIA). Data centres in Alberta must follow the same environmental rules and regulations as any other industrial applicant,” the ministry says.

“Every single project, and every component of an application for a proposed project undergoes environmental assessments and reviews.”

They add that even where an EIA is not triggered, proponents still must obtain all required permits; provide technical assessments on impacts to air, land, and water; and demonstrate the project can be built and operated safely.

Another statement from the Ministry of Technology and Innovation notes that Alberta hopes to attract up to $100 billion in data centre and related infrastructure over the next five years.

“That means thousands of high-paying construction jobs, new corporate tax and natural gas royalty revenues that fund healthcare and education, and a powerful new way to export the value of our energy resources through fibre rather than pipelines,” the ministry states.

The AUC is set to host an information session to provide information about how stakeholders may become involved in the proceedings. The project and its merits will not be discussed at this session.

That is happening at 5:30 on May 21, at the Pomeroy Inn & Suites at Olds College (Centennial Room B and C).

More on the AUC’s process is available here.

The town says it expects a decision late this year or in early 2027.

rdnewsNOW contacted Synapse for comment, but they directed us to their website for more information. They also offered this backgrounder, which explains why they decided to resubmit their AUC application.

Residents can have their say on the AUC application, and learn more about the project here.

by Josh Hall

AI data centre, power plant proposed for Olds awaiting further decision

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