An early glitch in Alberta’s plan to reach the global stage in the artificial intelligence industry has the NDP again deriding the government’s approach to Indigenous consultation.
Celebrity entrepreneur Kevin O’Leary is touting a $70-billion development near Grande Prairie as a home for future AI data centres that would include infrastructure for off-grid natural gas and geothermal power.
Plans to phase in Wonder Valley became public in a Dec. 9 news release. That was just days after the government published a strategy that envisions Alberta helping quench the world’s thirst for AI by becoming a leader in welcoming data centres.
O’Leary Ventures and project partners have signed a letter of intent to purchase and develop “thousands of acres of land” within and beyond an industrial park in the Municipal District of Greenview, the company news release says. The MD is about 350 kilometres northwest of Edmonton.
“One of our core values for the project is to engage with First Nations Indigenous communities to create a mutually beneficial relationship . . . that honours the people and the lands for many years to come,” the news release quotes Paul Palandjian, the CEO of O’Leary Ventures, as saying.
But Brooks Arcand-Paul, the NDP’s Indigenous relations critic, said Wonder Valley’s proponents are late to the table with Sturgeon Lake Cree Nation.
Arcand-Paul, the member for Edmonton-West Henday, told The Macleod Gazette: “Our entire history across this country has proven time and time again that when projects of this magnitude don't include Indigenous consultation, they can be stalled indefinitely.
“So despite this already being a fantasy project created by a failed federal Conservative leadership candidate who has links to Mar-a-Lago [Donald Trump’s home in Florida], I really struggle understanding why this project has even been intimated in this province and why we have a premier already lauding it for the benefits it will bring.”
Chief Sheldon Sunshine last week made public his nation’s objections to the proposal, saying it contravenes constitutionally protected treaty rights, would interfere with the nation’s use of traditional territory, and could have dire environmental consequences. Sturgeon Lake Cree Nation was not consulted before the announcement, he said.
O’Leary — who thanks to Dragons’ Den and Shark Tank enjoys TV fame on both sides of the border — in 2017 bowed out early in the race to lead the Conservative Party of Canada. The name of his company’s AI park, Wonder Valley, is presumably a play on his TV nickname, Mr. Wonderful.
In the O’Leary news release, Premier Danielle Smith is quoted as saying: “This is fantastic news for Alberta. Our efforts to attract investment, grow our technology and innovation sector, and leverage our natural and human resources are being noticed.”
She continued: “I’m excited to watch this project unfold in the months and years to come.”
Past Consultation Criticism
The premier’s UCP government often faces criticism for its approach to Indigenous consultation.
When the government announced health care reforms in late 2023, Indigenous communities across the province said they weren’t consulted. In December 2022, many nations said they weren’t consulted about the Alberta Sovereignty Within a United Canada Act, claiming it violates treaty rights.
And last September, the Siksika Nation said it was not consulted directly about construction of a Bow River dam. The nation east of Calgary said the government ignored technical advice to consult with First Nations and broke promises.
In a yearend interview with The Gazette, NDP Leader Naheed Nenshi said the UCP missed an opportunity to include Indigenous consultation in its All-Season Resorts Act. He said the exclusion of Indigenous consultation and other problems with the act could result in “some massive lawsuits.”
But Smith quipped in her year-ender: “At some point, I’m sure he’ll get elected to the legislature, and then he’ll understand how the legislature works.”
She said including Indigenous consultation in the bill would be redundant. “Of course we have to conduct Indigenous consultations. We have an entire department for that, and we do dozens if not hundreds of consultations per year.”
Alberta’s Ministry of Technology and Innovation issued a statement last week on Wonder Valley and Chief Sunshine’s comments, saying that the government “understands how important it is for Sturgeon Lake Cree Nation to exercise their treaty rights and traditional uses now and into the future.”
The statement from press secretary Jonathan Gauthier continued: “We are committed to meaningful and thorough consultation with First Nations on projects where these rights may be affected, and Alberta’s government consistently meets its legal and constitutional duty to consult. The courts have upheld our consultation process.”
As of last Thursday, plans for Greenview Industrial Gateway and Wonder Valley had resulted in no applications to the Ministry of Environment and Protected Areas, Gauthier confirmed in his emailed statement.
Preliminary Certificate Issued
No Water Act licence had been issued, but Gauthier did say the ministry is “supporting the MD in its planning by issuing a preliminary certificate allowing a Water Act licence to be issued in the future, provided various mandatory conditions are met.”
The statement continues: “These conditions include appropriate consultation with First Nations.”
The government “continues to pursue the best path forward to partner with AI data centre owners and operators,” he said, “to help them establish their projects in Alberta, create jobs for Albertans and grow our economy.”
Gauthier pointed to an opt-in concierge program to help potential investors and operators in the industry navigate regulatory processes for power generation and establishing AI data centres.
“With our data centre strategy, Alberta is positioning itself as a competitive player in the global AI landscape, focused on attracting more tech companies, investment and talent from around the world.”
Arcand-Paul sees a potential future for Indigenous collaboration on AI data centres, noting that his home nation northwest of Edmonton, Alexander First Nation, looked at the idea “before this was even proposed by Kevin O'Leary.”
Said the shadow minister: “I think there are some nations that would benefit and would want to work in this area. But you can't find those nations unless you are sitting down with them and doing what is required under the law, which is to consult.”
Reconciliation Law Would Help — NDP
A private member’s bill Arcand-Paul sponsored last year would guide the province if any legislative changes are needed to make AI data centres happen, he said. The Reconciliation Implementation Act would commit the government to consider reconciliation. But because it is not sponsored by a cabinet member or a UCP backbencher, the bill is unlikely to become law.
Arcand-Paul said the water necessary for AI data centres has to be a big part of the environmental and consultive equation, calling it “highly concerning” because AI data centres use large amounts of water for cooling.
“I can't stress it enough, the need for fresh water,” he said. “That should leave every Albertan concerned, because our water is precious.”
The AI data centre strategy says Alberta has an “existing water infrastructure (that) enables AI data centres to reduce both time and costs associated with accessing resources and establishing operations. Alberta’s Water Act provides a regulatory framework that seeks to allocate water resources based on sustainable usage, balancing the needs of various sectors, including communities, agriculture, and industry.”
