Data Centre Development

Synapse Data Centre Information

Want more details about the proposed Synapse Data Centre? Visit our Synapse webpage.

Data Centre: Synapse

Have Your Say! - AUC Application

The Synapse Data Centre proposal has begun its AUC application process. This is where important information is assessed, including noise impacts, natural gas co-location plans, and emissions modelling. And the public can participate. Visit the AUC’s E-Filing page to find out how.

View the application documents, including a Closed Application document from March 6, 2026 under AUC FAQ's.

Have Your Say

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

Our initial proposal announcement can be viewed here in our News Release. The second announcement regarding a proposal can be viewed in this News Release.

The Data Centre was also discussed during the Council Meeting on January 12, 2026 at 40 minutes. The presentation given about the Data Centre can also be viewed here: Council Presentation - Data Centres.

Below are some common questions regarding data centre development. If further questions arise or clarification is needed, please email planning@olds.ca.

Want more information?

Community Open Houses

A Community Open House regarding the proposed data centres was held on Wednesday, February 4. 

Proposed Data Centre Projects

The Town of Olds is trying to attract Data Centres to support our local economy and align with Provincial Priorities. Any data centre development must be done responsibly and there are various levels of responsibilities and approvals.

Two private data centre projects are proposed in Olds:

Data District has not submitted any documentation or applications, so information is limited.

The AUC has closed Synapse’s application for deficiencies, and it must now re-apply. The development permit has been withdrawn by the applicant.

IMPORTANT! While both projects will be similar they are not the same. Most of the information we have is regarding the Synapse project.

Frequently Asked Questions

AUC FAQs

The Alberta Utilities Commission (AUC) process for the Synapse data centre project is a mandatory provincial regulatory review primarily focused on the natural gas component that is intended to power the facility. That process is now open!

While the Town of Olds manages local zoning and development permits, the AUC has sole authority over the power generation component.

Residents can participate in the AUC process by visiting the AUC’s E-Filing page and registering. 

Conversely, the Town has downloaded the PDF documents from the Synapse AUC application:

On March 6, 2026, the Alberta Utilities Commission closed the Synapse AUC application for the proposed 1,400 MW natural gas power plant. This is an important development that residents deserve a clear explanation of. 

The AUC did not reject the project on its merits. The Commission closed the application because it contained significant deficiencies in the documentation submitted and determined it would be more efficient to review a corrected application in a new proceeding rather than attempt to fix the current one. Synapse is permitted to reapply. 

The deficiencies identified by the AUC included: 

The public consultation process (called a Participant Involvement Program, or PIP) was found to be insufficient. The AUC found that Synapse filed its application only 14 days after beginning consultation with over 700 nearby residences and did not adequately document the concerns raised or the steps taken to address them. Meaningful consultation is a foundational requirement of the AUC process, and the Commission determined this threshold was not met. 

The environmental evaluation submitted was a draft document with missing information, incomplete citations, and conclusions drawn from field studies conducted only in winter, which limited the ability to assess wildlife and wetland impacts. 

The application documents were internally inconsistent regarding the equipment being applied for. Notably, the Noise Impact Assessment references 600 diesel backup generators rated at 2.6 MW each, but the application materials did not fully account for these generators in the applied-for equipment list or in worst-case noise scenarios. 

The proposed noise mitigation measures were not adequately justified, and Synapse did not confirm it would actually implement them. 

No reclamation security plan was provided, despite the project being described as a permanent facility with a life expectancy of over 100 years. 

Synapse did not adequately address whether the federal Impact Assessment Act applies to the project. Given that the proposed facility exceeds 200 MW, a federal determination on this question is required. 

Residents who had filed a statement of intent to participate in the AUC proceeding should be aware that they will need to file a new statement of intent if Synapse reapplies in a future proceeding. 

View the AUC's Application Closure Letter (PDF)

The Town's development permit review for the data centre buildings is a separate process and continues independently. The AUC closure applies specifically to the power plant component of the Synapse proposal. 

That said, it is significant. The power plant is what would make the data centre viable at the scale proposed. Until Synapse addresses the AUC deficiencies and reapplies, the provincial regulatory process for the power generation component remains incomplete. The Town will continue its development permit review carefully and will communicate updates as they become available. 

The AUC process for the natural gas power plant is a provincial regulatory proceeding, and the Town of Olds is not the decision-maker in that process. However, the Town can formally participate as an intervener, meaning we can file written submissions, ask questions of the applicant, and advocate for conditions that protect community interests. 

The Town's most effective window to influence the power generation component of this project is through that AUC proceeding. Residents also have the right to participate directly. Visit the AUC's E-Filing page to register. 

Frequently Asked Questions

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.

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.  

  1. Data District (announced December 2025) – Town of Olds Welcomes Data District Inc. with Major Data Centre Investment Supporting Alberta’s Digital Economy
    • No development permit has been received and no public participation process under AUC framework has been commenced.
    • The Town does not have any further information to share at this time.
  1. Synapse Data Centre (announced January 2026) – SYNAPSE DATA CENTER INC. Announces Major Data Centre Development in Olds, Alberta
    • Synapse has announced its intention to begin construction on a 1GW AI Data Centre in the NE area of Olds.
    • A Development Permit has been received and public circulation has begun. Please see our updated Information Handbook for more information or contact planning@olds.ca.
    • The AUC public notification process has commenced, which the Town is not affiliated with. More information from the proponent is available at: www.synapsedatacenter.com/auc
    • Synapse held a public information session on February 5 at Olds College as part of its AUC submission.
    • View the Synapse Data Centre Project Information Package (PDF)

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.
  • Town of Olds
    Considers zoning, development permits, building permits, and local servicing.
  • Alberta Environment and Protected Areas
    Water Approvals, Environmental Standards, & Emissions Regulations

Yes, an AUC process is now open for the Synapse project. The Town is not involved in this process, but more information can be found HERE.

For most developments, the Town consults with the community during land use changes, such as rezonings and statutory bylaw amendments.

Regarding data centres, 2025 consultations included a June 9 public hearing to rezone the former Sundial property, adding data centres as a permitted land use in all industrial areas, and the 2025 Land Use Bylaw Review process, which included open houses, online surveys, pop up engagement events, and a public hearing, where data centres were moved from a permitted use to a discretionary use in industrial districts in order to have more control over their development. 

A Development Permit has been received and public circulation has begun. Please see our updated Information Handbook for more information or contact planning@olds.ca

While the Town is usually aware of most developments prior to a public announcement occurring, the Town needs to balance confidentiality of private business transactions with transparency. In addition, Town officials are often required to sign legally binding Non-Disclosure Agreements (NDAs) when dealing with private developers, where details cannot be shared publicly until a development permit is submitted. 

A Community Open House was held by the Town on February 4.  Visit Engagement and Surveys for more information.

Although electricity generation and grid reliability are regulated at the provincial level, 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. 

In other words, we believe data centre development in Olds will not have an adverse impact on the electrical grid or be responsible for increased utility bills to consumers.

The data centres proposed to date in Olds and virtually all others in Alberta propose ‘closed loop’ water systems; which are a one-time fill of approximately 500-1,000 cubic meters per month for cooling, 1,200 cubic meters per month for the natural gas plant, with the remaining water consumption coming from human uses in the offices (bathrooms, sinks, landscaping, etc.).

For perspective, the Town of Olds currently distributes roughly 80,000 cubic meters of water per day to residents and businesses and has capacity to deliver much more than this. 

Many people are rightly concerned about data centre water usage based on the issues seen in parts of the United States. But the Government of Alberta has made it clear to us that methods such as evaporative cooling are not being considered in Alberta, where water regulations are tighter, the climate is colder, and technology is available to virtually eliminate heavy water usage in 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.  

Based on conversations to date, data centres will consume approximately 1% of the town’s daily water usage for cooling purposes, but this will a one-time fill into a recirculation system. The natural gas co-location component is expected to consume approximately 1.5% of the town’s currently daily consumption. The remaining water consumption would be for human purposes in these buildings. 

These figures will be updated as more information is obtained. 

The Provincial government approves all industrial water use.

For comparison’s sake, Sundial (the former cannabis plant) consumed approximately 4x -5x this volume daily when at peak operations.

Like many other areas, there are municipal and provincial areas of responsibility with many community impacts. While we are always trying to prepare better and advocate to the province, it is not practical to heavily invest in growth without growth being assured. Here are a few key areas of how we are preparing for potential growth due to data centre construction and employment.

Housing

Those pressures are real. Council passed its first Housing Strategy in 2025 that speaks to how we want our housing market to grow. And in 2024 and 2025, we had record housing starts each year. We intend on building upon this progress to have an additional 640 housing units built in Olds by 2030. But regarding the impacts Synapse would have on our housing supply, it’s also important to note that:

  1. This project won’t scale overnight; even construction will be phased, so there won’t be 2,000 workers here on day one. That figure is an estimate of the workers required over the life of the proposed construction schedule (2+ years). 
  2. Olds is driving distance from Red Deer and Calgary, and several towns in between. Not every temporary or permanent worker will live in Olds. 

Social & Recreation

For these community issues, the Town has a role for things like recreation and public transit, while the province handles social services. But it’s important to note that the province has been downloading more of its responsibilities onto local governments without corresponding financial support. Nevertheless, we commissioned a public transit study and public survey in January of 2026, are due to consider an RCMP 5-Year Plan in February, and commence a Social Services Needs Assessment in 2027. While we can’t predict the future, we are trying to prepare for it.

Schools

We have land identified for the next public elementary school and are actively engaged with the Catholic school division; however, Holy Trinity school is not operating near capacity at present and Olds Elementary School is in the mid-90th percentile for capacity. However, as experience elsewhere in the province confirms, many schools are operating well over 100% capacity in the province, and for the province to fund a new school build, being above 100% capacity seems to be a pre-requisite. We don’t agree with this logic, but it appears to be reality.

Health Care

The Olds Hospital is undergoing a $21 million expansion that is due to be built by 2030. Our next step is to push for a second expansion to improve surgical operations and acute care capacity. This is in addition to the new Care First Medical Clinic opening in 2025, which has virtually eliminated the primary care waitlist in Olds for the first time in many years. But again, the province is hesitant to invest in hospitals, and doctors unwilling to practice, in communities that are not growing.

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. 

All industrial development in Olds is located on the town's periphery, which reduces impact on established neighbourhoods. That said, we take noise seriously, particularly for a development of this scale. 

The Noise Impact Assessment (NIA) submitted by Synapse as part of its AUC application is a Stage 1 preliminary assessment. It found that, without mitigation measures, predicted noise levels would exceed permissible limits at all modelled receivers. The assessment also identified that low-frequency noise analysis could not be fully completed at this stage due to insufficient equipment data. That work will need to continue through later stages as detailed design data becomes available. 

This is not uncommon for a preliminary assessment. The whole point of a staged NIA process is to identify risks early so they can be addressed in design. The AUC will require full compliance before any approval is granted. The Town's development permit conditions will also include noise requirements: baseline monitoring, post-construction verification, and a formal process for residents to raise concerns, for the data centre buildings within our jurisdiction. 

An exterior lighting plan that minimizes visual impact on adjacent properties will also be required as a condition of the Town's development permit. 

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) 

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. 

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.

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.  

The natural gas power generation component of the Synapse project is regulated by Alberta Environment and Protected Areas (AEP), not the Town of Olds. Synapse submitted an Air Quality Assessment as part of its AUC application, which is publicly posted on this page. 

That assessment found that under normal operating conditions, predicted nitrogen dioxide (NO₂) and particulate matter levels comply with Alberta's ambient air quality objectives. The only projected exceedances are for NO₂ and fine particulate matter (PM2.5) in the rare scenario where all ten natural gas plants simultaneously shut down and diesel backup generators run at the same time. Synapse has requested an exemption from AEP for those rare emergency events. 

AEP will review these findings as part of the AUC process and will set any required emission conditions. Residents with concerns about air quality are encouraged to participate in the AUC proceeding, where this evidence will be formally reviewed. 

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.   

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.   

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.    

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.   

The most concrete financial tool available to the Town is the offsite levy, a charge applied to new development to fund the municipal infrastructure that growth requires, such as roads, utilities, and servicing. The Town's current offsite levy bylaw sets rates based on land area, and large industrial developments like this one contribute accordingly. We’re projecting between $5 million and $6 million owed by Synapse should this project reach full build out.  

Beyond the offsite levy, a built and operational data centre would be assessed as industrial property and generate ongoing municipal tax revenue, contributing to the broader tax base and reducing pressure on residential property taxes. The Town is not in a position to publish projected tax figures until the scope of what is actually approved and built is clearer. Even then, the Alberta Municipal Affairs will be responsible for the tax assessment of this property. But this is a meaningful long-term benefit of development at this scale. 

Data centres are one part of a broader economic development strategy and not a single solution to municipal finances.  

This is a fair question and one the Town takes seriously. The Land Use Bylaw gives the Town authority to require financial security as a condition of a development permit, to ensure the satisfactory completion of approved development. For a project of this scale and complexity, that security provision is an important tool. 

For the natural gas plant component, site remediation and decommissioning obligations are regulated provincially. The AUC and AER both have jurisdiction over how energy facilities are wound down at end of life. 

The Town will explore other avenues legally available to it, but is limited in what it can guarantee through the development and building permit processes.  

Yes. The Town has full authority to approve, approve with conditions, or refuse a development permit for the data centre buildings on planning and development grounds. That is the normal process for any discretionary use application under the Land Use Bylaw. 

What the Town cannot do is use its development permit to veto or effectively override the AUC's authority over the natural gas power generation component. Those are separate approvals under separate legislation, and both must be obtained. A development permit from the Town does not authorize construction of the power plant, as that requires AUC approval. Conversely, AUC approval for the power plant does not substitute for a Town development permit for the buildings. But the development permit process is assessed based on how the project fits within existing land use and infrastructure, and does not consider matters outside of municipal jurisdiction.  

The Development Permit application for Synapse was withdrawn on March 10, 2026. There is no active development permit application currently.

Low-frequency noise refers to sound energy in the lower end of the audible spectrum, generally below 250 Hz. It is the kind of low hum or rumble associated with large mechanical equipment like generators, chillers, and turbines. While it may not always register as loud, low-frequency noise can travel farther than higher-pitched sound and can be felt as much as heard, which is why it can be disruptive even when measured levels seem acceptable. 

AUC Rule 012 requires low-frequency noise analysis when there is a complaint and specific conditions are met. The Stage 1 NIA submitted by Synapse was not able to complete a full low-frequency noise analysis because detailed equipment specifications are not yet available. That analysis will need to be completed in later stages of the NIA process as design data becomes available. The Town's development permit conditions will require noise monitoring that captures this, and a formal complaint response protocol for residents who experience concerns after operations begin will be developed.  

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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