‘Not suitable’: Utilities commission rejects power plant for Olds, Alta., data centre

The Alberta Utilities Commission has rejected a proposal to build a natural gas power plant near Olds, Alberta, that would have supplied electricity to a large data centre complex. Synapse Real Estate Corp. had proposed a 10-building campus that would have generated 1.4 gigawatts of energy, complemented by an additional 1.8 gigawatts of emergency and backup diesel power.

However, the commission deemed the location unsuitable for the development, citing concerns about the impact on the surrounding community. Local residents expressed strong opposition due to worries about noise, pollution, property values, safety, and strain on local healthcare and emergency services. The commission received numerous applications expressing similar concerns.

The Alberta government is actively seeking tech companies to establish data centers within its borders to reduce grid overloads. Data centers, which house powerful computer servers, have raised environmental and electricity demand concerns, especially with the rise of artificial intelligence and large language models. While the Alberta Utilities Commission evaluates the power infrastructure's public interest, zoning and land use decisions for data centers are left to municipalities.

The town government acknowledged the significance of the commission's review in ensuring safety, environmental, and regulatory compliance. Data centre projects have faced opposition elsewhere, including a controversial $13-billion facility planned by Meta Platforms Inc. in Sturgeon County. The provincial government is hosting town hall meetings to gauge public opinion on data center development.