A data centre is a secure, purpose-built facility that houses computer servers and networking equipment used to store, process, and transmit digital information. Data centres support services such as cloud computing, artificial intelligence tools, online platforms, telecommunications, and digital records.
Data Centre Development
The Town of Olds is working to position itself as a location that can support data centre development, building on our long-standing leadership in digital infrastructure and innovation. This approach aligns with provincial priorities to attract data centres and support the growth of Alberta’s technology and artificial intelligence (AI) sector, an area that will be an important driver of future economic growth and diversification.
As interest in data centres increases, the Town is committed to communicating openly, engaging with residents, and ensuring that any proposed developments are reviewed carefully through established regulatory and planning processes. While data centres are private-sector projects led and regulated primarily by senior levels of government, the Town will continue to focus on protecting community interests, supporting responsible development, and sharing accurate, timely information as it becomes available.
Further information can be found in the News Release.
Below are some common questions regarding data centre development. If further questions arise or clarification is needed, please email planning@olds.ca.
Frequently Asked Questions
Why are data centres being developed in Alberta?
The Government of Alberta is actively supporting digital infrastructure as part of a broader economic diversification and technology strategy. This includes attracting data centres to Alberta due to factors such as power availability, climate, and a business-friendly regulatory environment. See the Province’s Data Centre Strategy here.
Globally, AI Data Centre growth is expected to be approximately 33% over each of the next 5 years, equating to hundreds of billions of dollars in annual investment. Driving this demand is the growing integration of artificial intelligence into our economies in addition to ‘data sovereignty’ pushes by national governments, including Canada, to house critical data within their borders. This article provides more information on the growing demand for data centres.
Is a Data Centre opening in Olds?
Data District, in conjunction with the province, has announced their intention to open a data centre in Olds. But the Town has not received any development permits for this project. When that occurs, all public notification processes will begin.
Why is Olds considered a prime location for data centres?
Olds is an ideal location for data centres thanks to abundant natural gas supply, proven fibre-optic connectivity thanks to O-NET, and reliable water availability within the Red Deer River basin, all supported by Alberta’s business-friendly regulatory environment. Combined with a cooler climate, available industrial land, and proximity to major markets between Calgary and Edmonton, Olds offers a rare mix of infrastructure readiness and operational efficiency for large-scale digital facilities.
Interest and investment in data centres is increasing rapidly across Alberta as senior governments actively attract this industry. The Town is choosing to be strategically proactive, by understanding the sector, aligning local planning tools, and communicating early, rather than reacting later without preparation. This does not commit the Town to any specific project, but ensures Olds is informed, ready, and able to protect community interests if proposals advance.
Approvals for Data Centres are shared across jurisdictions:
- Alberta Utilities Commission
Power generation, transmission, and grid connections. - Government of Alberta
Electricity policy, water licensing, and environmental regulation. - Town of Olds
Considers zoning, development permits, building permits, and local servicing.
Is this community being consulted?
At this stage, there is nothing for the Town to consult on. Public consultation happens when a proposal requires Town approvals, such as a development permit or land use change. Nothing has been submitted to the Town to date.
If a developer submits a development permit application in the future, the Town will follow all required review and notification processes under its planning and land use rules.
The Alberta Utilities Commission (AUC) may also run their own separate public engagement process regarding the power generation component.
Will a data centre affect local power reliability or electricity bills?
Electricity generation and grid reliability are regulated at the provincial level, not by the Town.
Large power users are reviewed through provincial processes to ensure grid stability and reliability. The Government of Alberta has stated that protecting electricity reliability and affordability for Albertans is a priority, and that data centres that do not connect to the grid will be given higher priority.
All Data Centre developers the Town has communicated with propose significant natural gas power generation to offset or eliminate the need to connect to the electrical grid for computing processes.
Do data centres use large amounts of water?
Water use varies significantly depending on the cooling technology used. Many new data centres rely on air-based or low-water cooling systems, such as closed systems, as water conservation is a real concern that must be addressed.
Any significant industrial water use requires provincial licensing under Alberta’s water legislation. The Town does not issue water licences for industrial use.
Is there sufficient water in Olds for data centres?
Yes, the Town of Olds is a member of the Mountain View Regional Water Services Commission, which draws water from the Red Deer River. The commission currently holds an annual water license for over 9 million cubic meters of water and only uses about half of that allocation.
We anticipate a data centre will add about 2-3% to Town’s currently monthly water usage, and probably only temporarily. For comparison’s sake, Sundial (the former cannabis plant) consumed approximately 3x this volume when at peak operations.
Can the Town adequately respond to fires at these facilities?
Yes. Data centres are designed with multiple layers of fire prevention and suppression built into the facility. The Olds Fire Department is trained and equipped to respond to industrial and commercial fires and already plans for facilities with specialized risks. Water availability, access, and emergency response requirements are reviewed as part of the development and permitting process, and any additional site-specific fire protection measures are the developer’s responsibility. Fire prevention and emergency response planning are coordinated between the developer and local emergency services before a facility becomes operational.
What about noise, lights, and other neighbourhood impacts?
While all industrial areas are located on the periphery of Town, reducing impact, data centres are still required, as part of the AUC approval process, to complete a Noise Impact Assessment (NIA) and Air Quality Assessment. Municipal development approvals will also require an exterior lighting plan that mitigates visual impacts on adjacent neighbours.
What are the benefits to the community?
Benefits to the Town include:
- Construction-phase economic activity
- Permanent job creation
- Increased revenue to fund public services
- Alignment with broader provincial and national economic development goals
- Multiplier effect (attracting supporting industries)
Are there risks associated with data centres?
Like other large industrial developments, potential concerns can include:
- Power demand (regulated provincially)
- Water use (licensed provincially)
- Noise and visual impacts (managed municipally)
- Infrastructure impacts such as roads and servicing (reviewed through development approvals with costs borne by developers)
Each risk is managed by the level of government with the corresponding regulatory authority. The Town of Olds is confident that those issues within the municipal scope can be managed effectively without negative impacts to residents.
In addition, the Government of Alberta (who is responsible for regulating power, water use, and carbon emissions) is committed to minimizing the impact to existing customers of the electrical grid and municipal water systems.
How are nearby residents informed or consulted?
Before applying for approval with the Alberta Utilities Commission (AUC), developers must complete a Participant Information Program (PIP). This requires notifying nearby residents, municipalities, and other affected parties, providing project information, and responding to questions and concerns before the regulator considers an application. More information on this process is available via the Alberta Utilities Commission's webpage.
For the Town of Olds, engagement can be formal or informal. Formal engagement occurs during statutory amendment process, like Area Structure Plans and the Land Use Bylaw, which require public hearings to occur. Informal engagement occurs at outreach events, like Coffee with Council, via conversations with elected officials and staff, or open houses.
In 2025, the Town’s Land Use Bylaw was reviewed, with several engagement events occurring throughout the summer and fall. During this process, Data Centres were added as a discretionary use in Industrial-zoned areas.
A discretionary use is a use which may be allowed by the Development Authority, but requires additional notification and consultation with affected residents.
Are Data Centres a ‘Silver Bullet’ for the Town’s financial challenges?
Data centres are one part of a broader economic development strategy. They can contribute assessment, jobs, and infrastructure investment, but they are not a single solution to municipal financial pressures. Council continues to pursue multiple approaches to strengthen the Town’s long-term financial position and will begin drafting and engaging on our first Economic Development Strategy in 2026.
Does the Town have decision-making authority over power plants or data centre operations?
No. The Town does not approve power plants, grid connections, water licences, or provincial infrastructure decisions. The Town’s authority is limited to municipal planning and development matters.
What is outside the Town’s responsibility when it comes to Data Centres?
The Town does not approve or regulate power generation, grid connections, water licences, emissions, data privacy, or how artificial intelligence is used. These matters are regulated by provincial and federal authorities.
However, all developments are required to obtain development permits and on occasion bylaw amendments to facilitate rezoning. At this time, public processes are followed as per Alberta’s Municipal Government Act.
What are the next steps if a data centre proposal moves forward?
If a proposal advances, it will follow required municipal processes such as development permits or planning amendments, alongside provincial regulatory approvals through the Alberta Utilities Commission (AUC). Both processes have public notification and engagement requirements before approval is given.
Where can residents find updates?
The Town of Olds will share verified information through its website and official communication channels as it becomes available. Provincial regulatory processes are also publicly accessible through the Alberta Utilities Commission.
Contact Us
Town of Olds
3501 70 Avenue
Olds, Alberta, Canada
T4H 1L7
Phone: 403-556-6981
Email: admin@olds.ca
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