Proposal for massive new data centre in Olds, Alta. has some residents concerned

Plans for a huge new data centre, one the company proposing to build it says will be the largest in Canada, is creating some controversy in the small Alberta community where it would be located.

The town of Olds announced the project in late January, calling it a $10-billion investment that will create 2,000 construction jobs and more than 1,000 long-term, highly-skilled jobs once it goes into operation.

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That would make it “approximately ten times larger than existing data centres operating in Canada,” and would position the town “at the forefront of advanced digital infrastructure, to support rising demand for artificial intelligence, cloud computing, and data-intensive technologies,” according to a news release from town’s economic development agency, INVESTOlds.

“I mean, for the community it’s going to be a game changer and this is going to spur economic growth in our municipality but also in the region,” said Sandra Blyth, the agency’s economic development manager.

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“Just the increase in the industrial tax base will help the town of and its citizens to bring more services and more amenities to the town,” said Olds Mayor Dan Daley.

“Olds is strategically located 45 minutes north of Calgary and south of Red Deer and Edmonton. So great access to well-trained local employee base and also in close proximity to significant liquid energy or natural gas resources that facilitates our construction,” said Jason Dan Gall, Synapose Data Centre Man founder and CO, when asked why the the town was chosen for the project.

The announcement was made just weeks after a Swiss company also announced plans to build a smaller data centre in Olds that it said will create hundreds more construction jobs, between 70 and 150 permanent positions and inject up to $300 million into the local economy.

On Monday, Olds town council held a meeting to discuss Synapose’s proposal for their massive data centre and some area residents were their to voice their concerns.

Derek Hurst said while he’s in favour of the promised jobs, he is concerned about the vast amount of electricity the data centre would consume.

“This is basically a giant box. That’s what they’re proposing to build,” said Derek Hurst, as he emerged from the meeting.

“But what they are adding on the end of that giant box is a power station, and so it’s how are those things going to affect my, you know, quality of life?  Am I going to hear it? Am I going to smell it? Am I going to taste it? You know, those kinds of things.”

Doreen Mousek is concerned the project is being rushed, without enough information being provided to residents.

“I don’t think Olds has the infrastructure to support this at this time,” said Mousek. “For one thing, the traffic light where they’re proposed to do it never works properly. I can’t imagine supporting a thousand more people going through it. You know, just all the things that the town has not put in place for people to feel secure enough to have something of this capacity being built.”

According to Dan Gall, the Alberta Utilities Commission’s permitting process requires the company to go door-to-door to notify residents within 800 metres of the project of the company’s plans, in person.

“I myself went to 200 homes, spoke with over 100 individuals, and I would say that 95 per cent of the population is looking forward to the project or is, you know, neutral,” said Dan Gall.

“There’s a number of individuals that do have concerns and rightfully so.  I think a lot of those concerns stem from fear and uncertainty around the provincial permitting requirements related to noise and emissions, and we’re doing our best to share how that process works with all the local residents as best we can,” he added.

At their Monday meeting, Olds town council voted to change the land use designation for the area where the Synapose data centre would be built, to light industrial, further opening the door for construction to begin.

If the company manages to meet all municipal and provincial permitting requirements, according to the company’s timeline, posted online, construction could begin as soon as sometime next month and be completed in early to mid-2027.

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