After nearly a year of the Alberta government unveiling its plan to attract investments in artificial intelligence data centers to the region, a proposed project in a county northeast of Calgary has hit a significant roadblock. Cheers and applause filled the Rocky View County council chamber as councillors voted 6-1 to decline a proposal for an AI data center complex due to concerns about its location and potential impact on nearby farmers.
The developer, Kineticor Asset Management, had intentions to construct a campus across 448 hectares in the county’s northeast quadrant, nestled among farmland, which is slightly larger than CrossIron Mills. The proposed site was adjacent to farmer Wayne Shuttleworth’s land. Shuttleworth expressed worries about stormwater drainage from the complex affecting his crops and criticized the lack of clarity from the developer on resolving this issue.
The project was planned in five phases over 15-20 years, aiming to house six data centers, an on-site reservoir, and a power generation facility upon completion. In the initial phase, the project team secured electricity allocation from the Alberta Electric Systems Operator, despite a temporary cap on new data center additions to the grid.
During a lengthy 10-hour public hearing, stakeholders, including Kineticor’s team, eStruxture, farmers, and landowners, voiced their opinions on the proposed technology park. Multiple concerns were raised, such as the loss of prime farmland with high-quality soils and the water consumption implications of the technology park drawing potable water from the county’s treatment plant.
eStruxture, a Montreal-based data center operator involved in the project, emphasized their sustainable closed-loop cooling system to mitigate water consumption. The company, having existing data centers in the Calgary region, aimed to integrate Rocky View County into the digital future with the rejected project.
The approval process was fast-tracked by the council following the province’s initiative to kickstart over $100 billion worth of AI data center constructions in the next five years. However, many residents criticized the haste in moving the project forward, leading to its eventual rejection.
Experts anticipate a growing presence of AI data centers in rural Alberta, posing challenges related to land, water, and energy costs. Public engagement and addressing these concerns will be crucial for future data center developments in the region.
Rocky View County Reeve Crystal Kissel, who voted against the proposal, highlighted the need for caution and thorough planning when dealing with new technologies like AI. She expressed hope for Kineticor to return with a revised plan that aligns with community and environmental considerations.