Kevin O'Leary's ambitious $70-billion artificial intelligence data centre campus is clearing its first major regulatory hurdle in Alberta, but the high-profile investor still faces a critical permitting gauntlet before breaking ground.
Alberta's Ministry of Environment and Protected Areas has determined that the Wonder Valley AI Data Centre Park—proposed for the Greenview Industrial Gateway, roughly 40 kilometres south of Grande Prairie—will not require a provincial environmental impact assessment. An independent approvals officer ruled the project exempt based on its use of standard power and water infrastructure already available in the region.
"It has all the elements required. It's unique," O'Leary said in a video interview this week, pointing to the region's access to stable electrical grids, fibre optic cable, natural gas reserves, and frigid winter temperatures—all critical assets for data centre operations.
The exemption, however, does not mean smooth sailing ahead. Provincial officials have made clear that detailed technical assessments on impacts to air, land, and water must still be completed. The company must also demonstrate the project can be built and operated safely before any permit is issued.
"The minute we get the permit, that triggers a whole bunch of other activities in terms of how we finance it, when we start engineering, design, everything else," O'Leary told CBC News, signalling his confidence in the project's viability despite the regulatory maze.
The proposed campus—a 7.5-gigawatt facility developed as a partnership between O'Leary Ventures and the Municipal District of Greenview—was first announced last December. Recent conversations between O'Leary and Alberta government officials have been "positive," according to the investor.
Local Support, With Caveats
Ryan Ratzlaff, reeve of the M.D. of Greenview, said he views the project as a net environmental gain compared to previous industrial proposals in the region.
"They're going to take natural gas and turn it into electricity which will get turned into data bytes that will get transported down fibre lines," Ratzlaff explained, framing the data centre as a cleaner alternative to petroleum refining and transportation infrastructure.
Ratzlaff acknowledged the project's potential to drive job creation and economic diversification in a region historically dependent on traditional resource extraction. However, he was candid about community divisions: "Residents have mixed feelings about the project."
The reeve encouraged concerned constituents to visit the site—a largely empty industrial corridor along Highway 40—to assess the proposed development for themselves.
"Come and drive down this road. It's not that far from Grande Prairie," Ratzlaff said. "Take a look at the site, see the industrial activity that's already out here."
This report was adapted from original coverage by CBC News.