Ottawa lays out plan for AI data centres as community backlash grows

The Canadian federal government is introducing voluntary "principles" for the construction of artificial intelligence (AI) data centres to address concerns over their impact on communities. Ontario AI Minister Evan Solomon announced the five-point "national framework" in Markham, emphasizing that the guidelines are entirely voluntary, and the provinces and municipalities will retain jurisdiction over approvals and locations.

The principles propose that data centres should generate lasting local benefits, minimize water and energy use, be transparent about local impacts, and bring strategic value to the country. The framework has the endorsement of the Federation of Canadian Municipalities and major tech companies like Amazon, Google, Meta, Bell Canada, and TELUS.

Solomon acknowledged that the federal government cannot enforce the principles, as that responsibility lies with local governments. He stressed that any compliance would be monitored by municipalities or provinces, as they hold the regulatory authority.

A York University study revealed that, despite only four AI-specific data centres currently operating in Canada, there are an additional 49 facilities either announced or under construction. This rapid growth has sparked opposition in America due to their high water and electricity consumption, noise pollution, and strain on energy infrastructure, resulting in the disruption of 75 AI data centre projects in the first quarter of 2026 alone.

However, opposition in Canada has been comparatively limited, likely due to the absence of large-scale proposed projects. A recent Ipsos survey found that Canadians are less enthusiastic about AI than individuals in other surveyed countries, with 26% expressing excitement about the technology—down from 31% the previous year.

These factors present a challenge for Solomon, who is tasked by Prime Minister Mark Carney to promote the adoption of AI tools across the public and private sectors while ensuring that development aligns with Canadian values.