Court Rejects O’Leary’s Request in AI Data Center Dispute

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An Alberta court has rejected a request by O’Leary Digital Limited, a company owned by Kevin O’Leary, to dismiss a judicial review concerning consultation and water rights for the proposed Wonder Valley artificial intelligence data center in northern Alberta.

The $70 billion project is planned for the Municipal District of Greenview, with approval for withdrawing six million cubic meters of water annually from the Smoky River for the project.

O’Leary Digital sought to dismiss a judicial review application by the Sturgeon Lake Cree Nation, arguing that they were not served within the required timeframe as a directly affected party.

However, Justice Parminder K. Johal ruled that O’Leary Digital’s connection to the water license was speculative, allowing the judicial review to proceed. The company’s request for intervenor status or to be added as a respondent for the review was also dismissed.

Chief Sheldon Sunshine of the Sturgeon Lake Cree Nation expressed satisfaction with the court’s decision, stating that the judicial review provides an opportunity to uphold treaty rights and ensure accountability on consultation. The Nation anticipates the review to proceed in December.

O’Leary Digital’s CEO, Paul Palandjian, mentioned that the company is assessing the court ruling and expressed disappointment with the decision to continue the proceedings. Despite this, he emphasized the company’s commitment to engaging in meaningful consultation, responsible project development, and regulatory compliance.

Chief Sunshine reiterated the Nation’s desire for more consultation, requesting transparency on the project’s designs and technical reports to assess potential impacts, similar to other large-scale projects.

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