A proposed data centre in Hanna could bring investment, permanent jobs and a community fund, but council members pressed the developer on noise, water use, electricity demand and responsibility if the project fails.

BlueFlare Energy Solutions chief executive Landon Ruszkowski presented the proposal at Hanna’s Oct. 28 committee-of-the-whole meeting, a day after Genius Group, FingerMotion and BlueFlare announced agreements for the project.

The companies’ release describes Hanna Campus No. 1 as a $24.3-million development on 20.2 acres. Construction is targeted for December 2026, with initial computing operations expected in the second quarter of 2027.

The first phase would provide 2.4 megawatts of computing capacity, using three megawatts of ATCO grid power, with an option for additional natural gas generation. The announcement remains conditional on the land purchase, financing, a grid connection agreement and regulatory approvals.

During the presentation, Ruszkowski described a staged development with a maximum size of 9.9 megawatts.

Council sought clarification on how the facility would affect Hanna’s electrical capacity and whether generation would operate continuously or only as backup.

Ruszkowski said some on-site generation would likely operate much of the time. Discussions with ATCO had begun, but further work was needed. He said any required substation expansion associated with the project would be paid for by the developer.

Council members also questioned the site’s proximity to homes, potential emissions and noise.

Ruszkowski said computers would be housed indoors, with sound barriers around cooling equipment. He said the layout would place cooling equipment on the north side, away from the nearest residence, and that noise would be assessed through engineering studies and checked once operating.

Questions about water use prompted an explanation of the proposed closed-loop cooling system. Ruszkowski said it would circulate fluid rather than rely on continuous evaporative cooling. After the initial fill, routine water demand would largely come from washrooms and other staff needs.

Council also raised fire protection requirements and asked who would bear responsibility if the project failed. Ruszkowski said BlueFlare would be responsible.

Employment and training opportunities drew further questions. For a facility approaching 10 megawatts, Ruszkowski estimated 10 to 12 full-time positions on site, with additional work for outside service providers.

Those figures related to the larger development discussed, rather than a confirmed staffing complement for the initial phase.

He also described opportunities to train local residents and high school students, and said local businesses would be able to bid on construction and service work.

The partners propose directing 10 per cent of net profits into a locally governed community fund. Council questioned how the fund would be managed and distributed. Ruszkowski described an arrangement involving an escrow account, legal oversight and discussions with local representatives.

Council’s questions also addressed an earlier impression that an agreement with the town already existed.

Ruszkowski acknowledged a communication error and apologized.

Administration outlined several municipal steps still required.

Hanna’s land use bylaw does not currently identify data centres as a use. Administration said BlueFlare would need to apply for an amendment through Palliser Regional Municipal Services. Council would then consider first reading and hold a public hearing before deciding whether to proceed.

Staff recommended considering data centres as a discretionary industrial use, allowing the municipal planning commission to review individual applications and impose appropriate conditions. Discussion also included whether a definition could restrict facilities to less than 10 megawatts.

Administration said additional planning or legal expertise could help the town assess the proposal and protect community interests.

The presentation concluded with a motion to accept it and thank the delegation. No land use amendment or development permit was approved during the discussion.

BlueFlare representatives announced a public information session for Nov. 4, from 5 to 7 p.m. at the Hanna Legion. Administration emphasized that the developer’s session would be separate from the town’s future public hearing.