Proposed $10-billion data centre and natural gas plant has Olds, Alta., residents split

A proposed $10-billion data centre and natural gas plant is dividing people in Olds, Alta.

Town council has approved a light industrial rezoning bylaw for a parcel of land where the two-million-square-foot facility will be built.

The company still needs to pass provincial environmental regulations to go ahead.

The large parcel of vacant land—at highways 2A and 27—is on track to become one of the largest data hubs in the country.

“Economic impact, I would expect, would be felt outward from this project throughout Canada, central Alberta and certainly as a whole,” said Jason Van Gaal, CEO of Synapse Data Center.

Synapse Data Center is planning to pump funding over two years into a facility to support rising demand for artificial intelligence, cloud computing and data-intensive technologies.

“(The) data centre component itself can start as part of the municipal permitting process,” Van Gaal said.

“The natural gas plant is covered fully under the provincial permitting process. So we can’t start construction on that until we receive those permits.”

The 1.4-gigawatt facility will include a natural gas plant.

The company says water use will also be on a closed-loop system.

“They’re not going to be hooked to the power grid,” said Olds Mayor Dan Daley.

“They are going to be developing their own power through natural gas turbines that will be running on-site.”

Some residents in the community of about 9,700 are concerned about noise, environmental and health issues and a lack of public engagement.

“The second-largest power generation facility in Alberta is going to be next to well over a thousand residents, families, children, senior citizens,” said Eric Carlson.

“No setbacks, no buffers. It’s kind of unprecedented.”

Others support the development that will bring jobs and tax revenue for the community.

“It’s going to get built somewhere,” said James Cummings.

“They are being built throughout our province right now. Red Deer and other communities. So having one built in our community is that linchpin-type industrial complex that can make our town long-term sustainable.”

The town and company expect the project will create 2,000 construction jobs and 1,000 long-term high-tech jobs.

“Usually what this does is it attracts other investors as well to town,” Daley said.

Environmental permitting could result in another four months before shovels are in the ground.

Synapse Data Center wants to be open by the middle of the year.

The natural gas plant is still awaiting several approvals before it can be built.