• The AUC denied Synapse's application for a 1.4GW gas plant intended to supply its proposed 1GW data-centre campus in Olds
  • The regulator found the site unsuitable because of its proximity to the community, including about 700 residences within 800 metres

The fact

The Alberta Utilities Commission has denied Synapse Real Estate Corp.'s application to build a 1,400MW combined-cycle natural-gas power plant in Olds, Alberta. The plant was intended to supply an on-site 1GW data-centre development without connecting to the Alberta electricity grid. The proposal also included 1,800MW of emergency and backup diesel generation.

In Decision 30732-D01-2026, issued on 17 August, the AUC found the power project was not in the public interest because the proposed location was too close to the surrounding community. The site boundary was about 30 metres from the first row of properties across a residential road, and about 700 residences were within 800 metres.

The AUC said its decision applies to the proposed power plant, not the data centre itself, which it does not regulate. Synapse subsequently said the Olds project would not proceed as proposed but that its commitment to Alberta remained unchanged.

The assessment

The AUC decision leaves Synapse with a specific problem to solve: the power plan for the Olds campus no longer works at the proposed site. Synapse paired the 1GW data centre with dedicated generation rather than relying on a conventional grid connection. With the 1.4GW gas plant rejected, that combined configuration cannot proceed as submitted.

This is different from the AUC’s handling of Synapse’s first application in March. That filing was closed because it was incomplete, without a decision on the project itself. The refiled application went further and resulted in a public-interest decision that the proposed power-plant location was unsuitable because of its proximity to the community. Synapse would therefore need more than revised paperwork if it wants to revive the project.

For BTW readers, the immediate issue is now site and power redesign. Synapse must either find a location where dedicated generation can be permitted or change how the data centre would be supplied with electricity.

What to watch

Watch whether Synapse uses the 30-day review or appeal window, identifies another Alberta site or proposes a materially different power configuration. A new AUC filing, municipal development application or replacement generation plan would show whether the project is being reconfigured rather than abandoned. Any future proposal will need to address the proximity issue that drove the Olds decision.