An Alberta court has rejected a request by Kevin O’Leary’s firm, O’Leary Digital Limited, 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 project.

O’Leary Digital sought to dismiss a judicial review application filed by Sturgeon Lake Cree Nation, arguing that as a directly affected party, the company did not receive timely service. Sturgeon Lake Cree Nation contends that it was not adequately consulted during the water license approval process.

The court decision, issued on Thursday, determined that O’Leary Digital’s connection to the license was speculative and allowed the judicial review application to proceed. The company also requested intervenor status or to be added as a respondent for Sturgeon Lake Cree Nation’s judicial review, which was also dismissed by Justice Parminder K. Johal.

In response to the decision, SLCN Chief Sheldon Sunshine expressed satisfaction with the outcome, stating that the judicial review presents an opportunity to uphold treaty rights and ensure the Crown fulfills its consultation obligations. The tribe anticipates that the judicial review will move forward in December.

O’Leary Digital CEO Paul Palandjian, in an email to CBC News on August 14, mentioned that the company is currently assessing the court ruling. Palandjian expressed disappointment with the decision and emphasized the company’s disagreement with the continuation of the legal proceedings. He highlighted O’Leary Digital’s efforts to engage in meaningful consultation with SLCN and other communities from the project’s inception, reaffirming their commitment to responsible project development and regulatory compliance.

Chief Sunshine reiterated SLCN’s call for increased consultation, urging transparency from the province and O’Leary regarding the data center’s designs and technical reports to assess potential impacts thoroughly.