Alberta Exempts Major Data Centre from Environmental Review
The government of Alberta has decided not to require an environmental assessment for a large-scale data centre project backed by investor Kevin O’Leary. The proposed facility, known as the Wonder Valley project, is planned near Grand Prairie.
Officials from the provincial environment ministry confirmed the decision in a letter addressed to Paul Palandjian. The letter stated that the project does not meet the criteria for a mandatory environmental review under current regulations.
Decision Based on Current Project Details
Karen Tomashavsky, an acting manager in the approvals program, explained that authorities made the decision based on available information. However, she added that officials may reconsider if new details emerge.
Although developers announced the project in December 2024, construction has not yet begun and planning continues.
Energy Demand Raises Environmental Concerns
Developers have described the project as the world’s largest AI data centre industrial park. Once completed, it is expected to require about 7.5 gigawatts of electricity—far exceeding the output of major energy projects such as the Site C Dam.
Initially, the company proposed using both geothermal energy and natural gas. However, internal communications suggest the project has shifted to relying mainly on natural gas.
According to Will Noel of the Pembina Institute, such reliance could significantly increase carbon emissions. He warned that this approach might reverse years of progress made by reducing coal use in Canada.
Water Usage Sparks Additional Concerns
The project is also expected to consume around 24 million cubic meters of water each year. Experts note that this volume equals the lifetime water use of approximately 460,000 people.
The site lies within the territory of the Sturgeon Lake Cree Nation. Legal filings indicate that nearby water sources, including the Little Smoky River, have faced restrictions due to overuse in the past.
Additionally, the Municipal District of Greenview declared an agricultural disaster last year because of drought conditions, raising further concerns about water availability.
Limits on Water Access
Federal regulators have placed limits on water withdrawals from the Smoky River. Authorities have allowed only six million cubic meters of water per year for the industrial park, which falls far below the project’s estimated needs.
Unanswered Questions from Officials and Developers
Journalists requested clarification from Alberta officials and project representatives about environmental safeguards and resource use. However, neither government representatives nor company executives responded before the reporting deadline.
Data Centre Expansion Gains Momentum
This decision comes as both provincial and federal governments promote rapid growth in data centre development. Danielle Smith aims to attract up to $100 billion in investment within five years.
At the same time, a federal agreement supports the expansion of AI computing infrastructure. The deal includes exemptions from certain clean electricity rules, making it easier for facilities to use natural gas for power generation.
Rising Pressure on Resources
Experts warn that many proposed data centres in Alberta are located in areas already facing high water stress. As a result, increased industrial demand could limit water access for farmers and ranchers, especially during dry seasons.
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