Data Centre Development

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.

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.

2. 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 is under review. Town Council will schedule a public information session soon. 
   • 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.   

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. 

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. 

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 cubic meters of water. All other consumption would be for human uses only (bathrooms, sinks, landscaping, etc.)

For perspective, the Town of Olds currently distributes roughly 68,000 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. 

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. 

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.  

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.   

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.