Alberta Environment and Protected Areas has determined that Synapse’s proposed $10-billion data-centre project in Olds does not require an environmental impact assessment, The Albertan reported.

The decision was outlined in a letter from Acting Approvals Program Manager Karen Tomashavsky to Synapse Real Estate CEO Jason Van Gaal, stating that under the Environmental Protection and Enhancement Act (EPEA), further assessment is not necessary.

“Having regard to the consideration set out in Section 44(3) of EPEA, I have decided that further assessment of the activity is not required. Therefore, a screening report will not be prepared and an environmental impact assessment report is not required,” Tomashavsky wrote, according to The Albertan.

The decision comes after the Alberta Utilities Commission initially dismissed Synapse’s application to construct the 1.4-gigawatt digital-infrastructure facility, which would be Canada’s largest AI data centre, in the town of about 10,000 people roughly 90 kilometres north of Calgary.

The AUC said it based its decision on sufficient deficiencies in the company’s filing but was not commenting on the merits of the proposal. Synapse has since reapplied to the AUC. The proposed facility is among on the electricity regulator’s current list of applications for approval..

The proposed project has drawn opposition from some residents who worry about noise, water use, environmental effects and transparency around the project. During a town hall meeting in Olds, Van Gaal told the audience that the data centre will account for only about 1% of the town’s daily water usage if it is built, The Albertan reported.

Tomashavsky noted that the environment ministry’s decision to waive a review is based on current project information and could be revisited if different or new information comes to light, The Albertan reported.

Tomashavsky also emphasized that the province’s environment minister retains the authority to require an assessment if deemed necessary, and that other regulatory requirements may still apply under EPEA and the Water Act, the report states. She further indicated that Indigenous-consultation policies, a potential review under the Historical Resources Act, and compliance with AUC regulations could still be required.

In addition, Synapse has been advised to consult the Impact Assessment Agency of Canada to determine whether a federal review is necessary under the Impact Assessment Act, The Albertan reported.

Van Gaal welcomed the province’s decision.

“The letter from Karen Tomashavsky provides important clarity for our project,” he told The Albertan via email. “We appreciate the director’s determination that a screening report and an environmental impact assessment report are not required under the Environmental Protection and Enhancement Act (AEPA),” he told The Albertan via email.”

He added that the company has already received a pre-consultation assessment indicating no Indigenous consultation is required for its EPEA-related activities, though a Historical Resources Act review remains outstanding.

“Synapse is continuing to evaluate its approach to addressing the federal Impact Assessment Act and is actively monitoring the evolving legal framework,” Van Gaal wrote told The Albertan.

Image: Synapse