Synapse says it still plans to develop a massive AI data centre in Olds, Alta., after a regulator rejected the initial application and invited the company to reapply.

The Alberta Utilities Commission (AUC) dismissed Synapse’s application to construct what would be Canada’s largest AI data centre — a proposed 1,400-megawatt facility in the town of about 10,000 people roughly 90 kilometres north of Calgary.

The regulator said it was not commenting on the merits of the proposal but identified significant deficiencies in the filing.

“The deficiencies include, but are not limited to, errors, insufficient or incomplete information, and internal inconsistency among the application documents,” the AUC stated.

“Collectively, the deficiencies create a significant lack of clarity as to whether application requirements have been met.”

The commission added the application could not be processed based on the original submission.

“Given the number and significance of deficiencies, the commission has concluded that it cannot process the application with the current information in the application,” said the AUC.

However, the regulator said Synapse can submit a revised proposal, noting that decision is “without prejudice” when it comes to any new application.

The proposed $10-billion project would be built on about 121 hectares in northeast Olds and form part of Alberta’s push to attract large-scale, energy-intensive AI infrastructure. The province aims to draw about $100 billion in data-centre investment over the next five years to boost jobs, investment and natural-gas demand.

In an email, Synapse CEO Jason van Gaal told Postmedia thatthe company is reviewing the decision before resubmitting its proposal.

“The Synapse Data Center Project is designed to be a 100-year fixture in the Olds community,” he told Postmedia.

“It is critical that we work closely with both regulators and our neighbors to ensure the project’s foundation is built on transparency and trust. We have taken the AUC’s guidance and our community’s feedback to heart.”

The company says the potential development would create about 1,000 full-time jobs and roughly 2,000 construction positions, while generating significant local tax revenue.

The AUC cited several gaps in the application, including insufficient responses to concerns raised during community consultations that began in late January and missing information about environmental and noise impacts, including worst-case scenarios. It also said Synapse failed to include a site-reclamation plan despite projecting the facility would operate for a century and incorrectly assumed the project would not be subject to federal impact legislation.

The plan has drawn opposition from some residents who worry about noise, water use, environmental effects and transparency around the project.

Image: Synapse