A proposed $10 billion AI data centre complex in Olds, Alberta, has sparked intense debate and record public opposition as residents grapple with the potential impacts of the massive development on their small community of roughly 10,000 people.
Synapse Data Centre Inc. wants to build a 1.4-gigawatt natural gas-fired power plant and 10 individual data centres on a 300-acre site recently rezoned for light industrial use. The power plant alone would generate enough electricity to meet Edmonton’s daily demand, while the data centres would form what the company calls Canada’s largest AI data centre project.
The proposal hit a major roadblock in March 2026 when the Alberta Utilities Commission rejected Synapse’s initial application, citing significant deficiencies in public consultation, environmental evaluations, and noise impact assessments. After the company resubmitted in April, the commission paused the process again in June and is now demanding answers on 26 outstanding issues, including land use zoning, water usage, air quality, and plans for 600 diesel backup generators.
Public pushback has been extraordinary. Between 685 and 1,100 residents have registered as intervenors in the regulatory hearings, the largest public response in recent Alberta utility history. Among them is Bek MacIntosh, a mother of three who lives across from the proposed site and has helped organize neighbours. Lawn signs have appeared around town reading, “A data centre and power plant want to move in next door. Are you ready for what comes next?”
At a packed town hall in April, Alberta Technology and Innovation Minister Nate Glubish questioned whether the power plant belongs on land zoned light industrial, saying it “did not seem to fit the definition.” He suggested the province may need to set rules about how close such facilities can be to homes. The location was changed from future urban district to light industrial specifically to accommodate the development.
There is no connection between this project and businessman Kevin O’Leary, whose separate $70 billion Wonder Valley data centre proposal is planned near Grande Prairie in northern Alberta. This Olds development is led by Synapse CEO Jason van Gaal.
The controversy reflects wider tensions in Alberta, where the government is courting large-scale data centre investment while local communities wrestle with the consequences of hosting industrial-scale power generation.
