Sturgeon Lake Cree Nation v Alberta: Water License Challenge Allowed to Proceed

• A lawsuit challenging a water license to divert water for Kevin O'Leary's data center has been allowed to proceed.
• The Sturgeon Lake Cree Nation (SLCN) had filed the lawsuit against the government of Alberta and the Municipal District of Greenview in October 2025, alleging inadequate consultation.
• O'Leary Digital Limited is not a necessary party to the lawsuit and cannot stop the challenge to the water license.

The court ruled that O'Leary Digital's connection to the water license is 'contingent and speculative,' and therefore it had failed to prove it would be directly affected by the SLCN's lawsuit.

A lawsuit challenging a water license to divert water for Kevin O'Leary's data center has been allowed to proceed, despite the company's attempt to intervene. The Sturgeon Lake Cree Nation (SLCN) had filed the lawsuit against the government of Alberta and the Municipal District of Greenview in October 2025, alleging that the province had not adequately consulted with them during the licensing process. The SLCN did not name O'Leary Digital Limited as a defendant in the lawsuit, but the company claimed it was entitled to intervene because it would be the ultimate beneficiary of the water license. However, the Alberta court ruled that O'Leary Digital's connection to the water license is 'contingent and speculative,' and therefore it had failed to prove it would be directly affected by the SLCN's lawsuit.

The case dates back to 2023, when Greenview started the application process for a water license under Alberta's Water Act. The province concluded that Greenview would have to consult with SLCN, but later granted a preliminary certificate to Greenview without notifying or consulting SLCN about the reduced water amount. This decision was made despite the fact that O'Leary Digital had not been identified as an interested party in the proceedings. In December 2024, the Alberta government, Greenview, and O'Leary publicly announced the AI project, which would require a significant amount of water for its cooling system.

The court's decision has implications for future water licensing applications involving similar projects. Lawyers advising on water licensing in Alberta should be aware that O'Leary Digital Limited is not a necessary party to the lawsuit, and therefore cannot stop the challenge to the water license. This ruling may have significant consequences for indigenous communities who are concerned about their rights being ignored during the consultation process.

Lawyers advising on water licensing in Alberta should be aware of the court's ruling that O'Leary Digital Limited is not a necessary party to the lawsuit, and therefore cannot stop the challenge to the water license. This decision may have implications for future water licensing applications involving similar projects.

Source: Original reporting via [Source]