Statement by Stephen Legault, Senior Manager, Alberta Energy Transition the recent decision by the Alberta Utilities Commission (AUC) to reject an application to construct a 1,400-MW thermal power plant (with 600 emergency diesel generators) to power the Synapse AI data centre in Olds, Alberta

Canmore | Traditional territories of the Treaty 7 Nations – Congratulations to the passionate and dedicated community members who have forged a compelling argument against the methane gas power plant that would have powered the AI data centre proposed by Synapse Real Estate Corp. It’s a big win for the community and the environment. Affordability, livability and human health would all have been impacted had this gas plant been built adjacent to neighbourhoods in Olds.

There remain, however, more than 30 proposed data centres across Alberta, and natural gas is being proposed to power each one of them. This could more than double the province’s power needs, while generating 20-30 million tonnes of greenhouse gas emissions, fueling more droughts, heat domes, floods and fires. We’re urging the Alberta government to change the rules for how data centres are powered by mandating that all new projects use a mix of renewable power – hydro, wind, solar and geothermal – along with battery storage to operate these investments.

Alberta is desperate for investment, and AI data centres are the current hot investment opportunity. Developers such as Metta have a lot of clout and could advocate for renewable power. Building new gas-fired plants will tie Albertans to fluctuating commodity prices as demand for electricity outpaces the province’s capacity to build new gas facilities. We run the risk that in the event that the data centre bubble busts, Albertans will have to clean up billions of dollars in abandoned infrastructure. 

Renewable energy is powering the global economic transition and will provide a clean, reliable energy source that energy suppliers can adapt as Alberta’s economy joins the global energy shift. 

BACKGROUND 

  • Alberta’s Electricity System Operator is developing a “bring your own generation” (BYOG) framework, which requires data centres connecting to the grid to also add generation capacity. But as currently drafted, the rules effectively exclude everything except gas-fired power — meaning that even if a data centre operator wants cheaper, faster, low-carbon electricity, they’re only permitted to build more gas plants.
  • Changes in Alberta’s renewable energy development regulations over the last 3 years have severely limited investment in and the building of wind and solar projects. The restrictions, put in place by Premier Smith’s UCP government, aren’t based on science, but rather the province’s preference for coal, oil and natural gas as fodder for Alberta’s royalty revenues. 

ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

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For more information or to request an interview, please contact:

Alex Ross, Environmental Defence, media@environmentaldefence.ca