CALGARY — The Alberta Utilities Commission (AUC) has rejected a proposed natural gas power plant that was intended to supply a large AI data centre complex near Olds, ruling the site would have been too close to hundreds of homes.Synapse Real Estate Corp. proposed constructing a $10-billion power plant and data centre campus supported by 1,400 megawatts of natural gas generation.In its decision released on Monday, the AUC concluded the proposed site was unsuitable for a development of that scale.“The project is too close to the surrounding community, and Synapse failed to demonstrate any compelling justification for selecting that location,” the commission said in its 13-page decision.“The site is simply not suitable for the proposed development.”.DATA CENTRE DOUBLE DOWN: Alberta presses ahead with AI strategy as global projects falter.Roughly 700 homes are located within 800 metres of the proposed project in northeast Olds, and local residents have raised concerns about noise, air pollution, property values and safety issues.“The commission is particularly concerned that the project would be located in the immediate vicinity of an established community and directly across from homes, shops, restaurants and hotels,” the AUC said.“Many residents considered themselves potentially affected by the project, and these concerns remain outstanding after Synapse’s consultation efforts.”The application, filed in April, was Synapse’s second attempt to seek AUC approval for the project at the location.The company’s first application was closed for several reasons, including insufficient information.The AUC regulates power infrastructure but not data centres themselves. Municipal governments are responsible for zoning and land-use decisions.The Town of Olds said in a statement that it has “maintained that development must meet the required safety, environmental and regulatory standards before it can proceed. The AUC’s review is an important part of those checks and balances, and we respect its decision.”The town also said it had not received any “data centre development permit application from Synapse to date.”.Technology and Innovation Minister Nate Glubish told the Financial Post that the AUC’s decision demonstrates thatAlberta can pursue suitable data centre developments while rejecting proposals that don’t work for local municipalities.“The criticisms of that project were that they were going to build a 1.4 gigawatt power plant right across the street from an urban residential neighborhood,” Glubish said.“If they don’t have a power plant, they won’t have a data centre.”The decision comes as data centre development remains a major issue in Alberta, with opposition emerging to proposed projects in Sturgeon County and Rocky View County. Premier Danielle Smith and other government officials are also planning to host a series of town halls about the sector in the coming weeks.
