Mississauga city council has voted unanimously on a moratorium on new data centres for one year, the latest municipality to hit the brakes on the artificial intelligence-fuelled build out.
The pause is framed as a chance to study what guardrails the city could place around new data centres as local lawmakers grapple with residents’ concerns about possible energy, water and noise impacts.
“We’ve heard your voice loud and clear,” said Martin Reid, the councillor who sponsored the moratorium.
Coun. Dipika Damerla (Ward 7) took a moment to thank members of the public that came to the council meeting Wednesday.
“This is your win today,” said Damerla. “You guys sounded the alarm, you guys came forward, you guys advocated and if there’s an ICBL (Interim Control By-law) that passed today … if there’s a moratorium on data centres it’s because of you.”
Mississauga’s pause applies to data centres with energy demands over 10 megawatts, or enough electricity to power roughly 10,000 homes.
During the temporary pause, the city will conduct a comprehensive policy review for major digital infrastructure facilities, according to a statement from the City of Mississauga Wednesday.
“The review will assess whether policies and regulations, such as the Official Plan and Zoning By-law, need to be updated,” it read.
One of many municipalities grappling with data centres
Municipalities have found themselves on the front line of a debate over how to handle a new wave of data centre projects cropping up across Ontario. Proponents say the facilities could help secure Canada’s future as an AI leader, but the rapid pace of development has some communities hitting pause.
Mississauga joins neighbouring Oakville, which last month passed the province’s first moratorium. Other cities, including Hamilton and Burlington, have directed staff to carry out data centre planning studies but rejected a moratorium.
In July, councillors voted in favour of creating the bylaw after one the size of three football fields was proposed in the city.
The province and federal government have broadly backed the data centre buildout as a chance to exercise greater domestic control over the digital economy and attract investment. But they face critics who say cities have been left with little guidance or enforceable standards.
“It’s kind of a Wild West,” said Reid.
Victoria Mancinelli, spokesperson for labour union LiUNA (Labourers’ International Union of North America), which represents 120,000 members across Ontario, says she is disappointed in the city council’s decision.
“At a time when Ontario is competing for investment, jobs and the infrastructure that will power our digital economy, closing the door on opportunity sends the wrong message,” she said over email.
“Today, [people from Mississauga] sent a message that they are closed for business and that they do not care about the jobs their lack of foresight impacts.”
Vote puts freeze on current project
The vote appears to now put in limbo the 40-megawatt data centre project in a business park in the city’s northwest pursued by Prologis, a major U.S.-headquartered firm.
The site is just south of Highway 401, neighbours an Ikea warehouse, is close to an electrical substation and about a kilometre away from the nearest residential neighbourhood.
In a statement, the company said it’s disappointed by the vote and was considering its next steps.
“We remain committed to Mississauga and confident that a carefully planned data centre in Meadowvale Business Park can bring significant long-term economic benefits to the community,” read the statement.
Prologis said a third-party assessment, done by the Toronto-based consulting firm Parcel Economics Inc., estimated the project’s construction would have supported about 1,690 jobs. Parcel said the centre’s operations would have supported about 63 jobs in Mississauga.
The vote also marks what could be a significant turnaround for a project that initially received an approving reception from councillors.
When the project came before a planning committee in March, Coun. Reid said he was excited about it and lauded its potential boost to the city’s tax base.
After the committee voted to advance the project’s application for additional work with staff, Mayor Carolyn Parrish said, “who turns down Prologis? I haven’t seen anyone yet.”
That tone shifted as residents learned about the project, raising a number of concerns related to its energy demands, backup generators and location in a floodplain, among other issues. A town hall, attended by residents and Prologis, helped to convince Reid to bring in a moratorium, he said.
WATCH | Mississauga votes to ban new data centre projects for 1 year:
Why data centre communities worry about water
As resistance to AI data centres grows, industry leaders say there are ways to build more community-friendly facilities. For Radio-Canada, Anaïs Elboujdaïni examines the water concerns and explores the arguments for a more sustainable approach in Canada.Issue at centre of city’s mayoral race
The issue of AI data centres has been at the core of Mississauga’s mayoral race, with the city’s top three candidates expressing their support for the moratorium.
In an emailed statement Wednesday, former mayor and current candidate Bonnie Crombie said she supports the interim bylaw.
“We need to understand the impacts on our neighbourhoods, the costs to our infrastructure and the benefits to Mississauga before making decisions,” she said. “Any development should always be prioritized based on public interest and the highest and best use of the land.”
Crombie is running for her old position after she resigned as leader of Ontario’s Liberal Party this year.
Damerla, who is also running for mayor, said in a statement she is committed to protecting the city’s power grid and water supply, and will build strict, enforceable zoning rules with residents at the table.
“Mississauga should decide the terms of how — and whether — these facilities operate here,” she said in the statement. “Today’s vote was an important step. I’m going to keep pushing to make sure it isn’t the last one.”
Ward 2 Coun. Alvin Tedjo joined the chorus, saying in a statement he also welcomes the council’s decision to pause projects for a year.
“Residents are right to be asking questions, and they deserve clear answers,” he said.
The race to be Mississauga’s next mayor features 14 candidates. A full list of mayoral candidates can be found on the city’s website.