Here’s how some Ontario municipalities are grappling with new AI data centres
The boom in artificial intelligence has put Ontario municipalities on the front lines of a major debate over how to regulate a new wave of large, energy-hungry data centres. Several municipalities have voted in recent months on temporary data centre moratoriums while they study possible guardrails, and at least one has amended its bylaws to […]
Ontario municipalities are navigating the challenge of regulating artificial intelligence data centres, which are increasingly energy-intensive. Several local governments have enacted temporary moratoriums on these facilities while conducting studies to determine appropriate regulations.
Hamilton was the first Canadian city to vote on a one-year data centre freeze, an interim control bylaw. Although the proposal passed committee, it was ultimately rejected by council after a private session with legal counsel. City staff are currently conducting a data centre planning study to assess potential safeguards, such as energy demand and noise pollution.
Oakville became the first Ontario town to successfully implement a moratorium in late August, pending a comprehensive planning study. Meanwhile, developer Hive Digital Technologies announced plans for a 320-megawatt AI facility in the Greater Toronto Area, which is slated for completion in the second half of 2027.
Sault Ste. Marie directed staff to draft a moratorium targeting data centres exceeding 50 megawatts of energy demand, with a vote on this measure expected on September 21. Greater Napanee recently passed a bylaw permitting data centres on industrial lands, broadening the range of permitted uses.
Toronto's council instructed staff in July to review the city's planning policies concerning data centres and to alert councillors about any substantial applications. Ottawa's council also directed staff to develop an assessment framework for data centres, including potential policy amendments. Until that framework is presented to council, staff will inform council of any large-scale data centres to enable a case-by-case moratorium if needed.
Milton's town council directed staff to study data centres but rejected a temporary moratorium during a recent meeting. Burlington's council similarly voted down a bid for a temporary moratorium in July but directed staff to study the city's existing rules around data centres. Finally, the Waterloo Region municipality instructed staff to report back to council early next year on the implications of potential data centre development.
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