Alberta regulator rejects power plant for Olds data centre

The Alberta Utilities Commission (AUC) has rejected an application by Synapse Real Estate Corp. to build a natural gas-fired power plant in Olds, Alberta. The plant was intended to provide 1.4 gigawatts of power to support a massive, two-million-square-foot data centre complex.

In its decision, the AUC stated the project was “too close to the surrounding community” and that the company failed to provide a “compelling justification” for the specific location. The proposed site was situated near residential areas, shops, and hotels, with some properties located within 30 metres of the project boundary. Local residents had expressed significant concerns regarding noise, pollution, safety, and the potential strain on local emergency services.

Despite the setback, Synapse Data Centre Inc. CEO Jason van Gaal stated that the company remains committed to Alberta, citing the province’s energy strengths and the growing demand for artificial intelligence infrastructure. Alberta’s Minister of Technology and Innovation, Nate Glubish, noted that the rejection demonstrates the regulatory system's ability to vet large-scale projects for community compatibility.