An Alberta court has rejected a request 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 AI data center project 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 aimed to dismiss a judicial review application from Sturgeon Lake Cree Nation, claiming it was not served within the required timeframe as a directly affected party. Sturgeon Lake Cree Nation argued that it was not adequately consulted during the water license granting process.
The court decision, released on Thursday, ruled in favor of allowing the judicial review application to proceed, deeming O’Leary Digital’s connection to the license as speculative. The company’s request to intervene or be added as a respondent in the judicial review by Sturgeon Lake Cree Nation was also dismissed.
Chief Sheldon Sunshine of Sturgeon Lake Cree Nation expressed satisfaction with the outcome, stating that the judicial review provides an opportunity to uphold treaty rights and ensure accountability in consultation with the Crown. The Chief anticipates that the judicial review will proceed in December.
O’Leary Digital CEO Paul Palandjian mentioned in an email to CBC News that the company is currently evaluating the court’s decision. Palandjian expressed disappointment with the ruling and disagreed with the continuation of the legal proceedings. He highlighted the company’s efforts to engage in meaningful consultation with Sturgeon Lake Cree Nation and other communities from the project’s inception, emphasizing a commitment to responsible project development and regulatory compliance.
In response, Chief Sheldon Sunshine reiterated the need for increased consultation, requesting transparency in sharing designs and technical reports related to the data center project to assess potential impacts thoroughly.