First Nation calls for federal review of Wonder Valley AI project

The Sturgeon Lake Cree Nation is calling on the federal government to review Kevin O'Leary's company's proposal for an AI data centre in northern Alberta.

Sturgeon Lake Cree Nation wants a proposed artificial intelligence data centre project in northern Alberta to undergo a full federal assessment on its environmental impact before next steps can begin.

The Wonder Valley AI project is currently in a planning and regulatory preparation phase. It’s being headed by Canadian millionaire Kevin O’Leary through his group, O’Leary Digital.

The centre will be located mostly in the Greenview Industrial Gateway (GIG), a heavy eco-industrial area within the Municipal District of Greenview, northwest of Edmonton and south of Sturgeon Lake Cree Nation.

O’Leary Digital gave an overview of the project’s next moves, including a projected timeline, water plans and site approval updates, at an open house Thursday.

A pre-released newsletter indicated that water would be drawn from the Smoky River and use less than six million cubic metres of water per year – lower than what the MD of Greenview is legally able to use.

It also outlined a phased approach to the project, with 2026 dedicated to environmental and electrical permitting, Indigenous and stakeholder consultation and equipment ordering.

Sturgeon Lake Cree Nation Chief Sheldon Sunshine says the consultation so far has not assuaged his fears on the impact to rural or Indigenous land.

The First Nation worries the facility will be one of “the largest single-site heat sources on the planet,” according to a Thursday media release.

“We are very concerned. We’ve done research on what we’re potentially looking at, the amount of water these things require … We’re talking enormous emissions … It is going to be a substantial project,” he told CTV News Edmonton.

A proponent of O’Leary Digital has consulted with the First Nation, but Sunshine says a federal analysis would ensure “that what they’re telling us is true.”

There are currently no regulatory systems in place for the development of AI data centres in Alberta due to their novelty. The province’s tech and innovation ministry said that means all industrial applicants – including data centres – need to follow the same environmental rules and regulations.

“Environmental impact assessments, however, are determined through an established legal process under the Environmental Protection and Enhancement Act,” said ministry press secretary Jonathan Gauthier.

“Even where an EIA is not triggered, proponents must still obtain all required permits, provide detailed technical assessments on impacts to air, land and water, and demonstrate the project can be built and operated safely before any project can proceed.”

Sunshine argues data centre projects should be paused until specific regulatory and environmental laws can be established first.

“It’s going to be First Nations and the rural people in the area that are going to be paying the price long-term,” Sunshine said.

The First Nation said it was preparing for a hearing with O’Leary Digital on Monday.

With files from CTV News Edmonton’s Connor Hogg