They want an interim ban on data centre development to be discussed at a city council meeting on Aug. 31
Two Sault Ste. Marie councillors are proposing an interim bylaw prohibiting development of data centres in the city.
The following is the full text of a resolution that will be introduced at Monday’s city council meeting by Ward 3 Coun. Angela Caputo and Ward 2’s Lisa Vezeau-Allen:
Municipal framework regarding development of data centres in Sault Ste. Marie
Mover: Coun. A. Caputo
Seconder: Coun. L. Vezeau-Allen
Whereas the rapid growth of AI-driven systems, cloud computing and digital infrastructure has accelerated the development of new and large-scale data centres to meet industry-defined needs; and
Whereas both knowledge of and expertise of the impact of data centres on a community is widely unknown to the general populations; and
Whereas the Government of Canada launched the “Canada’s National Artificial Intelligence Strategy: AI for all” on June 4, 2026; and
Whereas national consultation prior to establishing the Canadian AI Strategy did not include all orders of government nor did it include proposed regulations for the AI data centre industry to safeguard the environment, people, and our communities; and
Whereas the Province of Ontario has not established a provincial regulatory framework for AI data centre industry to date; and
Whereas in some cases the rapid development of AI data centres has forced developers to overhaul project designs to mitigate environmental and human health impacts (some of which are still being identified), negotiate community benefit agreements, and in some cases halt project development until such time that zoning and land use codes and criteria have been updated by municipalities; and
Whereas planning for large data centres, including AI data centres, would be new territory for the City of Sault Ste. Marie and defined policies should be developed to address them prior to any proposals being presented and to ensure council and the public has an opportunity to provide input and weigh in on the matter; and
Whereas robust regulatory alignment to define impacts to environmental and human health is required at all three orders of government so the public is clear about expectations, pathways for accountability in the development, and what public benefits may be derived
Now therefore be it resolved that staff be directed to undertake a review and study of the city’s land use planning policies in relation to artificial intelligence (AI) data centres, pursuant to section 38 of the Planning Act, applicable to all zones where the use is permitted in the City of Sault Ste Marie, including, but not limited to, its official plans and zoning bylaw, and present any required changes to the city’s land use planning policies, mapping, and regulatory framework with consideration of, but not limited to the following:
Existing official plan policies and zoning bylaw permissions and regulations
Energy use and the impacts to power grids, electrical utilities, onsite power regulation for clarity of behind the metre power sources and their potential impact
Water use and the impacts to local bodies of water, including creeks, rivers, and lakes; water and wastewater systems; and watersheds that includes consideration of algal blooms, aquatic ecosystems, and biodiversity
Noise impacts
Heat impacts that include consideration of urban heat islands and other urban heat phenomena;
Land use and the impacts to trees, plants, and wildlife that includes consideration of the tree canopy and biodiversity;
Any other environmental impacts, impacts on the climate, potential impacts on human, animal, and ecological health, infrastructure needs, energy and affordability, and community health, safety and wellbeing; and,
That staff be directed to report back to council by Q2 2027 on the results of the review and any recommended actions;
Further that staff from planning, legal, other relevant staff, and the environmental sustainability committee be directed to report back to council in 2027, with an interim report with respect to the review and study of artificial intelligence (AI) data centres, on the following:
The study scope of work including financial and staffing resources and need for external consultants;
A plan to consult with Indigenous communities; The public engagement strategy, including the methods to collect, analyze and incorporate feedback;
Information on the current regulatory environment for data centres at the federal, provincial and municipal orders of government, as well as any updates following recent legislative changes
Information from PUC and other electrical utilities on the potential costs and other impacts to electrical infrastructure and their inclusion as a development cost for proponents; and
Legal advice to the City of Sault Ste Marie about any options available should either the federal or provincial government attempt to force an AI data centre to be developed in Sault Ste Marie;
Community benefit agreement framework
Further that staff be directed to prepare for council’s consideration at the next council meeting on Aug. 31, 2026, an interim control bylaw, prohibiting the development of data centres; and,
That a copy of this motion be shared with Federation of Canadian Municipalities and the Association of Municipalities of Ontario to formally request their support with the federal and provincial governments in establishing a coordinated regulatory framework including municipalities to establish environmental, human and community health safeguards and public disclosure requirements as it relates to AI industry growth and development.