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Proposed northern Alberta AI data centre raises concerns over power demand and water use
Дата публикации: 06-07-2026 15:50:26
The 650-megawatt natural gas power plant is proposed for northeast of Peace River and is highlighting broader environmental concerns about Alberta's rapidly expanding AI data centre industry.
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The 650-megawatt natural gas power plant is proposed for northeast of Peace River and is highlighting broader environmental concerns about Alberta's rapidly expanding AI data centre industry.
Published Jul 06, 2026 • Last updated 2 days ago • 5 minute read
This photograph shows servers inside the data centre of French company OVHcloud in Roubaix, northern France on April 3, 2025. Photo by Sameer Al-DOUMY / AFP via Getty ImagesA proposed natural gas-fired power plant northeast of Peace River is drawing attention to broader concerns about Alberta’s rapidly expanding artificial intelligence data centre industry, with conservation experts and Indigenous groups questioning the long-term impacts on electricity demand, water use and the environment.
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Cree Ative Datacenter Corp GP is proposing a 650-megawatt natural gas power-generating facility about 40 kilometres northeast of Peace River to supply electricity for a new data centre.
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Cree Ative is the general partner acting for and on behalf of Mihta Askiy LP, an Indigenous partnership that is 51 per cent owned by Woodland Cree First Nation and 49 per cent owned by Sovereign Digital Infrastructure.
The project is expected to operate for 30 years. On March 4, the Impact Assessment Agency of Canada issued an early decision determining that no further federal impact assessment is required under the Impact Assessment Act.
The proposal comes as Alberta actively courts investment in AI infrastructure through its Data Centre Strategy, which says the industry could deliver significant economic benefits.
“Construction of AI data centres and supporting infrastructure would support job creation for skilled tradespeople and ongoing operation would promote employment diversification,” the province’s AI Data Centre Strategy states.
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However, as large-scale data centre proposals continue to emerge across Alberta, some experts say the province needs a clearer understanding of their cumulative environmental impacts.
Kennedy Halvorson, a conservation specialist with the Alberta Wilderness Association, said questions remain about electricity demand, greenhouse gas emissions, water use and the combined effects of multiple projects being developed simultaneously.
“With the data centers in general what’s most alarming to me at this moment is the really rapid pace we’re seeing proposals being put in in Alberta, compared to other provinces in Canada and just in general,” Halvorson said.
“We’re just seeing so many applications for different large data centers being put in all around the province, and that’s all ongoing with very little regulatory guardrails to potentially reign them in should they have adverse impacts.”
Halvorson said the proposed Mihta Askiy project is modest compared with some of the province’s largest proposed developments.
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“(Mihta Askiy Data Center) is proposing a power generation of 650 megawatts, and some of the larger ones, like Wonder Valley, south of Grande Prairie on its full buildout is – 7.5 gigawatts or 7,500 megawatts,” she said.
“The entire province of Alberta as a whole generates and consumes approximately 10 gigawatts or 10,000 megawatts. The Wonder Valley are proposing likely to use as much as three quarters of the whole province.”
She added that the Alberta Electric System Operator has received requests from proposed data centres totalling nearly 12 gigawatts of electricity — more than Alberta’s current grid demand.
“It is hard to imagine any industry needing so much power that’s comparable to the entire use of a province.”
Environmental review
Alberta’s Ministry of Environment and Protected Areas said no data centre project has been permitted to bypass environmental review requirements.
“Data centres in Alberta must follow the same environmental rules and regulations as any other industrial applicant,” the ministry said. “Every single project, and every component of an application for a proposed project undergoes environmental assessments and reviews.
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“Environmental impact assessments, however, are determined through an established legal process under the Environmental Protection and Enhancement Act, and 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.”
Federally, the Impact Assessment Agency of Canada invited Indigenous Nations and the public to comment on the project in January before issuing a Notice of Early Decision in March.
The agency concluded that no further federal assessment was required.
“IAAC is satisfied that the carrying out of the project may cause adverse effects within federal jurisdiction or direct or incidental adverse effects. In light of the factors considered, IAAC is of the view that the potential adverse effects within federal jurisdiction, or direct or incidental adverse effects, from the project would be limited or addressed through existing federal and provincial legislative and regulatory frameworks,” the agency said.
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“As a result, IAAC decided that no further assessment under the IAA is required for the project. Decisions like these ensure that Canada’s impact assessment process is efficient by determining at an early stage whether further assessment is required or not.”
Métis concerns
The Zone 6 Regional Council of the Métis Association of Alberta, representing Métis locals in Grande Prairie, Valleyview, Peace River, Manning and Fort Vermilion, submitted comments expressing concerns about the project.
The proposed Mihta Askiy Data Center is located within Métis Harvesting Area A, where Métis members exercise constitutionally protected harvesting rights.
“Our members have historically and continue to this day exercise their constitutionally protected Aboriginal rights throughout Métis harvesting areas, on both Crown lands and private lands, where permission from landowners has been granted,” the council wrote.
The council said members are concerned about the cumulative effects of industrial development on Indigenous rights, wildlife and water resources.
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“These levels of disturbance are comparable to those found excessive by the British Columbia Supreme Court in its landmark Yahey decision. Moreover, similar levels of disturbance would found to require offsets – above and beyond standard mitigation – by the Canada Energy Regulator in relation to the Pouce Coupé pipeline project in northwestern Alberta,” the Zone 6 Regional Council of the Métis Association of Alberta said.
Water use remains a key question
Halvorson said water use is another area where more information is needed.
“Much of the stuff I’m seeing from the data centers is that they’re going to use, they’re saying they’re going to use methods that reduce water consumption, that they’re going to use closed-loop systems, but the actual volume that they want to take out and would need to take out for their operations, but also for, natural gas production and extraction, also will consume water,” she said.
“All of those kinds of water balances are unaccounted for, so it makes it really difficult to understand what the kind of cumulative impact on a given watershed would be because we just don’t have those volumes.
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“We don’t know how much they plan to divert, like, where in the, along the river or the tributaries will they divert, how much will they release back into the river, what will the water quality of those releases be, how frequent will the releases be? Questions that should be answered.”
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