A massive data centre project proposed for Olds, Alberta is facing significant delays after the Alberta Utilities Commission (AUC) pumped the brakes on the review process, demanding additional information from the developer before moving forward.
Synapse Real Estate Corp. had proposed constructing a 1.4-gigawatt natural gas power plant paired with 1.8 gigawatts of emergency diesel backup generation to fuel a sprawling data centre complex. However, the project has ignited fierce community opposition in the town of roughly 8,600 residents.
Growing Opposition from Residents
The scale of local pushback has been extraordinary. Around 685 statements of intent to participate (SIPs)—formal notices indicating residents plan to intervene in the regulatory process—have been filed and granted standing in the upcoming AUC proceeding. For a town Olds' size, this represents a remarkable mobilization of public concern.
Olds resident Janae Johnson, who lives near the proposed development site, expressed worry about potential health and environmental impacts, as well as the prospect of her property value declining. "From what I've heard, I actually am really encouraged by the AUC, and I am even more encouraged by the amount of people that have been intervening," Johnson told CBC News at a May 21 information session.
Commission Signals Serious Questions
The AUC first requested additional information from Synapse on May 15, generating a lengthy list of clarifications spanning technical specifications to environmental management. The questions covered critical details: the exact make and model of the natural gas combustion turbines, on-site diesel fuel storage volumes, employment figures for facility operations, and strategies for managing wetlands on the proposed construction site.
When Synapse submitted responses to the initial round on June 5, the commission wasn't satisfied. Instead of proceeding with the next scheduled step—allowing interveners to submit their own information requests—the AUC decided to suspend the entire process pending Synapse's response to a second wave of questions.
"Considering the number of SIPs received and the Commission's additional information requests, the Commission has decided to suspend the current process steps until Synapse submits its responses to the Commission's additional information requests," the company acknowledged in a June 16 letter.
Timeline Pushed Back
The pause deals a blow to Synapse's original timeline. Company founder and CEO Jason van Gaal had initially projected beginning construction on the power plant this summer, contingent on environmental permit approvals. That window has now shifted significantly, with no clear completion date for the AUC's review process.
Van Gaal declined to comment on the regulatory development.
For residents in Olds concerned about this industrial-scale project arriving in their community, the AUC's methodical approach appears to be delivering the scrutiny many demanded. Whether the additional review will ultimately block, modify, or approve the project remains uncertain.
This report was adapted from coverage originally published by CBC Calgary.