Data Centre & Natural Gas Power Generation Projects FAQs

A data centre is a facility that houses computer servers and related infrastructure used for cloud computing, AI processing, internet services, and digital storage.

Modern data centres can vary significantly in size, from small regional facilities to large campuses requiring substantial electrical power, cooling systems, and utility servicing.

Lacombe County’s Land Use Bylaw defines a ‘Data Processing Centre’ as:

“a building, dedicated space within a building, or a group of buildings used to house computer systems and associated infrastructure and components for the digital transactions required for processing data. This includes, but is not limited to cryptocurrency, digital currency processing, non-fungible tokens, and blockchain transactions.”

What is a natural gas power plant?

A natural gas power plant is a place that makes electricity by burning natural gas. When natural gas is burned it creates heat, which moves air through a turbine, which is connected to a generator, and makes electricity.

Lacombe County’s Land Use Bylaw includes a natural gas power plant in the definition of ‘Industrial, Heavy Manufacturing and Processing’ as follows:

“a large-scale industrial manufacturing or processing activity. Without restricting the generality of the foregoing, heavy manufacturing and processing industry would include plants for the manufacture of petroleum products, pulp and paper products, stone, clay and glass products, cement and lime products, fertilizers, animal by-products; plants engaged in the primary metal industry, including metal processing; the processing of natural gas or its derivatives; power generating stations (other than a commercial alternative energy system); and incinerators, including those for municipal and industrial use. Heavy industrial uses may have some negative effect on the safety, use, amenity and enjoyment of adjacent or nearby sites due to appearance, noise, odour, emission of contaminants, fire or explosive hazards, or dangerous goods.”

The Government of Alberta is actively supporting digital infrastructure as part of a broader economic diversification and technology strategy. This includes attracting data centres to Alberta due to factors such as power availability, climate, and a business-friendly regulatory environment. See the Province’s Data Centre Strategy here. 

Large AI and cloud-computing data centres require substantial and reliable electricity supply. In some cases, developers may propose a dedicated natural gas-fired power generation facility to supply electricity directly to the data centre, support grid reliability, provide backup or redundant power, or reduce dependence on existing transmission capacity.

Some projects may also involve substations, transmission infrastructure, water servicing, pipelines, or carbon capture systems.

These projects involve approvals from multiple levels of government and agencies. Approvals required are unique to the project’s specifics, and are shared across jurisdictions: 

• Alberta Utilities Commission (AUC)
  Power generation, transmission, and grid connections. The AUC is required to consider municipal planning and land use impacts as part of its public interest assessment. Municipalities may also participate in AUC proceedings to provide comments regarding local planning, infrastructure, and community impacts.
  
  
• Alberta Environment and Protected Areas
  Water Approvals, Environmental Standards, & Emissions Regulations.
  
  
• Lacombe County
  Considers zoning and development permits.

What decision-making authority does the County have over natural gas power plants or data centres?

For electrical generation projects such as natural gas power plants, the primary approval authority is the Alberta Utilities Commission (AUC). The AUC reviews and approves power generation facilities under provincial legislation. A municipality cannot outright prohibit a provincially approved power plant if the project receives AUC approval. For power plants, municipal authority is more limited because the province regulates electricity generation in the “public interest,” which includes environmental, social, economic, and municipal impacts. However, municipalities still play a meaningful role through land use planning, local servicing, road use, and public input. Municipalities are invited to participate in AUC proceedings and can submit statements of concern, technical evidence, or negotiated conditions.

Data centres are different because they are usually not directly regulated by the AUC unless they include a power generation facility, a transmission connection requiring AUC approval, or certain utility infrastructure.

A standalone data centre is generally regulated primarily through municipal planning processes.

However, if a data centre includes a large natural gas generation facility to power its operations, the generation component would likely require AUC approval, while the County would still retain authority over municipal planning matters.

Typical municipal planning matters include:

• Land use bylaws and zoning (rezoning/redistricting applications)
• Development permits for portions of projects not exempted by provincial approval
• Municipal servicing requirements
• Road access, road use agreements, and transportation impacts
• Emergency services coordination
• Noise, landscaping, lighting, and site design considerations where municipal jurisdiction applies
• Public engagement and local input into the approval process

If a development is proposed, it will follow required municipal processes such as development permits or rezoning amendments, alongside provincial regulatory approvals through the Alberta Utilities Commission (AUC).

Yes.

Both the provincial and municipal approval processes have public notification and engagement requirements before approval is given.   

Public engagement opportunities may include:

• Alberta Utilities Commission (AUC) participant involvement programs,
• developer hosted public meetings,
• municipal public hearings,
• mail out circulations with comment periods.

The level of consultation depends on the scale and complexity of the project.

Before applying for approval with the Alberta Utilities Commission (AUC), developers must complete a Participant Information Program (PIP). This requires notifying nearby residents, municipalities, and other affected parties, providing project information, and responding to questions and concerns before the regulator considers an application. More information on this process is available via the Alberta Utilities Commission's webpage.  

For the municipal approval process in Lacombe County, developers are required to engage with the public during a rezoning or development permit application. During the rezoning and development permit processes for a natural gas power plant or data centre, the developer is required to host a public meeting, for people to learn more about the project and ask questions. The notice of a public meeting will be available in the County News, a local newspaper, on the County’s website, as well as directly mailed to landowners within a 2-mile radius of the project.

Lacombe County will share verified information through its website and official communication channels as it becomes available. Each project has unique development information, which will be shared with the public through the public engagement processes.

Provincial regulatory processes are also publicly accessible through the Alberta Utilities Commission.   

Steps to Participate in an AUC proceeding

1. Register for eFiling: Create an account on the AUC eFiling System using your email address.
2. Find the Proceeding: Enter the five-digit proceeding ID number found on the public notice you received or on the AUC current applications list.
3. Submit a Statement of Intent to Participate (SIP):
• Click the "register to participate" button within the eFiling System.
• Provide your contact information and land location.
• Explain your position and how the decision may directly and adversely affect your rights (e.g., impact on your land, business, or environment).
• The AUC uses the SIP to determine if you have "standing" to be an intervener in the hearing.
4. File Evidence: If granted standing, you must submit written evidence, such as expert reports or personal documentation, before the hearing begins.

Levels of Participation

• Observer: You can listen to the live audio stream of the hearing and review all public documents without filing your own submissions.
• Intervener: This is full participation. You can present evidence, ask questions (cross-examination) of other witnesses, and provide a final argument.
• Group Participation: The AUC encourages individuals with similar concerns to form a group and hire a single lawyer or expert to represent them.

Important Privacy Note: All information filed (except that granted confidentiality) becomes part of the public record, including your name and contact details.

Provincial Resources

• Alberta Utilities Commission
• Government of Alberta – AI Data Centres

For questions regarding municipal planning approvals, rezoning, or development permits, please contact Lacombe County’s Planning Services department at 403-782-8389 or planning@lacombecounty.com.