Data Centre Discussion | Town of Olds

View the panel information and handout (above) that were displayed during the Open House on 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 Inc
Synapse Data Centre Inc.

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

Synapse has submitted a development permit & begun its public engagement process

IMPORTANT!

While both projects will be similar they are not the same. Most of the information we have is regarding the Synapse project and so most of our information will focus on that.

More information can be found at Data Centre Development or and in the handout provided.

Synapse Inc

Synapse Proposed Site Map

Roles and Responsibilities

Town of Olds

Land use and zoning.
Municipal servicing and compatibility.
Noise, Light, and Visual Impacts.

Province of Alberta

Regulates energy facilities and major industrial approvals.
Sets environmental, health, and safety standards.
Sets Data Centre Policy & Attracts Data Centres to the Province

Alberta Utilities Commission (AUC)

Regulates natural gas usage and co-location of facilities at data centres.
Requires a public engagement process to occur, which has begun.
Also requires emissions testing and noise impact assessments prior to approval.

Alberta Environment and Protected Areas (AEP)

Regulates water usage for Data Centres and emissions guidelines.
Requires a public notification process, which is expected to start soon.

How Decisions Are Made

This is a multi-year process and these are proposed data centres. Public input is part of the review!

A private company identifies Alberta as a potential location
The Province of Alberta actively promotes data centre investment as part of its economic strategy.
A developer approaches a municipality
A private developer explores specific communities that may meet their needs for land, servicing, and location.
Land is secured
The developer may purchase or option private land within the community.
Municipal planning review begins
The Town reviews whether the proposed use fits existing zoning and land use policies.
Public notice and public input
Residents are notified through Town communication channels and have opportunities to provide input to Council.
Council’s role
- Council considers land use, servicing, compatibility, and community impacts.
- Council can approve, refuse, or impose conditions within its municipal authority.
Provincial regulatory review
Separate from municipal processes, the developer must apply to provincial regulators.
- Alberta Utilities Commission (AUC)
- Alberta Environment and Protected Areas (AEP)
Provincial decision
The Province may approve, impose conditions, or deny the project.

IMPORTANT! Municipal approval alone does not authorize construction. Multiple levels of approval are also required.

Town of Olds Process: What's Happening Now?

Rezoning

All industrial areas in the Town of Olds are zoned for Data Centres (since June 2025)
January 26 rezoned to remove highway commercial uses to support large industrial development in the Northeast Area.
February 9 Public Hearing to zone 1 parcel to industrial (currently zoned urban reserve and ‘future industrial’ in the Town’s Municipal Development Plan)

Development Permit

A development permit was submitted on January 30 and is now under review.
Data Centres are considered a ‘Discretionary Use’, meaning public circulation will occur.
Circulation will begin in a few days.

Building Permit

No building permit applications have been submitted yet. This typically takes place following the development permit process.
The building permit review process ensures that all structures are constructed in compliance with all federal and provincial safety standards, including fire and building codes.
Inspections take place at key stages throughout construction and permits are not closed until full compliance is achieved.

Public Engagement & Information To Date

May & June 2025

Land Use Bylaw Amendment + Public Hearing to add a Data Centre use to all light industrial districts.

June – October 2025

Land Use Bylaw Review Process to move Data Centres from a permitted use to a discretionary use, to allow more control over their development.
Online surveys, open houses, pop-up engagements, and public hearing.

January 12, 2026 Council Presentation

Door Knocking by Town Councillors.
Bylaw 2025-11 added data centre as a permitted use in all light industrial properties while rezoning the former SNDL land to this district.

Future & Current Public Engagements

February 4 Town of Olds Open House
February 5 Public Engagement Session at College (Developer Led / No Town Involvement)
February 9 Rezoning
Development Permit Circulation (Date TBD)
Future Open Houses (Dates TBD)

Issues and Decisions OUTSIDE the Town's Scope

Water

Who approves it?

Alberta Environment & Protected Areas approves all industrial water use.

What do we know so far?

Synapse is proposing a closed-loop system
There would be a one-time fill would take an estimated 500 – 1,000 cubic meters of water to fill each building
The natural gas co-location, an estimated 1,200 cubic meters (600 for staff and 600 for the plant) a month is required, representing approximately 1.5% of the Town’s current monthly consumption.
The Town uses approximately 80,000 cubic meters of water a month.

Electricity

Who approves it?

Alberta Utilities Commission (AUC)
Alberta Energy System Regulation (AESO)

What do we know so far?

Synapse does not propose to connect to the grid for computing power nor redundancy.
Data District does propose a partial grid connection based on previously built & approved electrical capacity.

Where will Synapse get its power from?

Natural gas.

Natural Gas

Who approves it?

Alberta Utilities Commission (AUC)

What do we know so far?

Synapse plans to acquire natural gas from nearby suppliers to generate 1.4GW of electricity for computing purposes.

What about noise and emissions?

Both require assessments by and approvals from the AUC.

Traffic and Road Safety

Who approves it?

Alberta Transportation & Economic Corridors (ATEC)

What do we know so far?

A Traffic Impact Assessment was completed for this area during the Area Structure Plan (ASP).
ATEC is currently reviewing it.
There will be access points from Hwy 2A and Hwy 27 to minimize the congestion at the 2A/27 intersection.

Why Council Supports Attracting Data Centres

Community-level benefits

Broader tax base
Less pressure on residential taxes
Long-term financial stability of Town
3000+ construction and skilled technical jobs
Aligns with provincial economic strategy

Big Picture: The goal is thoughtful growth, not growth at any cost. Growth helps maintain the services residents value as costs rise.

Preparing For Potential Growth

Economic growth is important for our Town to remain vibrant and financially sustainable.

We want to grow responsibly.
Provincial building will never build an additional school or expand a hospital in a town that is not growing
Housing developers and doctors want to invest a community that seeks to progress.

Housing

The town has established Housing Strategy to manage growth responsibly.
Two years of record housing starts

Health Care

Doctors: the new clinic has removed the wait list for a family doctor.
Hospital: Planned expansion for dialysis which supports more acute care beds. Lobbying province for more.

Schools

Plans for new public schools and catholic school in the coming decade.

Public Transit

There is a Community Transit Service Study happening February 9 This will help us understand demand, service gaps and realistic next steps.

Safe and Environmental Protection

How risks are regulated and managed

Data centres are regulated industrial facilities. They must meet provincial safety and environmental standards before they can be approved or operate.

Fire Safety

Fire suppression systems, alarms, and emergency response plans are required.
Local fire services review site access, hydrant locations, and response considerations as part of development permitting.
The risks are no greater than current infrastructure and industry located in our area, and can be managed with strategies in place for community growth and increasing demands for service.

Air Quality and Emissions

Any on-site power generation other backup systems must meet provincial air emission limits and regulations through the Alberta Ambient Air Quality Objectives Compliance.

Noise

Noise must comply with provincial noise standards.
Noise impact assessment is being conducted and must meet or exceed AUC Rule 012 Noise Control
Mitigation measures can be imposed if needed.

Water and Environmental Protection

Closed-loop cooling. One-time system fill only.
Stormwater and spill prevention plans are required.
Environmental protection measures are reviewed through provincial processes.

Electrical and Industrial Safety

Electrical systems must meet provincial and national safety codes.
Worker safety is regulated by Alberta Occupational Health and Safety.

Myths and Misinformation

Are the Data Centres already approved?

No data centres have been approved. Two are being proposed.

Is the Town of Olds financially involved in data centre development or offering tax breaks?

No, the Town of Olds is not financially involved in either data centre proposal is not offering any tax breaks to either developer.

Would these projects have saved O-NET and paid off its debt?

No, data centres will not connect to the O-NET fibre, but directly to the transit fibre connecting Olds to Calgary.

What if the Data Centres go bankrupt and the buildings abandoned?

This is a risk with any industrial development but even vacant buildings owe property taxes and are required to maintain their grounds according to Town bylaws.

Are data centres harmful to human health?

Data centres do not emit harmful radiation or frequencies.
For natural gas co-location, strict emissions testing needs to be done prior to approval.

Can the Town adequately respond to potential fires at a data centre?

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.

Will this development affect property values in Olds?

While no solid information exists for Canada, the Town believes that higher economic activity generally results in higher property values. But regarding data centre and property values, one relevant study from November 2025 (Keither Waters and Terry Clower) on the housing market near Virginia’s ‘Data Centre Alley’, found homes near data centres saw consistently higher values than homes further away from them.

What about preserving farmland?

This land was annexed in 2020 for the purposes of industrial development. It is going to be removed from ag production eventually regardless of the development.