An Alberta court has rejected an appeal by O’Leary Digital Limited, owned by Kevin O’Leary, to dismiss a judicial review regarding consultation and water rights for the proposed Wonder Valley artificial intelligence data center project in northern Alberta.
The $70 billion project is planned for the Municipal District of Greenview, where the municipality has been granted permission to extract six million cubic meters of water annually from the Smoky River for the development.
O’Leary Digital sought to reject a judicial review application filed by Sturgeon Lake Cree Nation, claiming that the company, as a directly impacted party, was not served within the required timeframe.
Sturgeon Lake Cree Nation argues that it was not sufficiently consulted during the process of granting the water license.
The court’s decision, released on Thursday, determined that O’Leary Digital’s connection to the license was speculative and allowed the judicial review application to proceed. Additionally, the company’s request for intervenor status or to be added as a respondent in the judicial review by Sturgeon Lake Cree Nation was also dismissed.
SLCN Chief Sheldon Sunshine expressed satisfaction with the ruling, stating that the judicial review provides an opportunity to uphold treaty rights and ensure accountability in the consultation process. The judicial review is anticipated to proceed in December, according to SLCN.
In response to the court decision, O’Leary Digital CEO Paul Palandjian mentioned in an email to CBC News on August 14 that the company is evaluating the outcome. Palandjian expressed disappointment with the decision and emphasized the company’s commitment to engaging in meaningful consultation, responsible project development, and adherence to regulatory requirements.
SLCN continues to advocate for more thorough consultation, requesting transparency in sharing project designs and technical reports to assess potential impacts of the data centers on the environment, similar to other large-scale projects.