When Don Valley West Coun. Rachel Chernos Lin found out a massive AI data centre was slated for her ward, her discovery didn\u2019t come in the form of a\u00a0submission from a builder.<\/p>\n
Rather, she found out that a local Toronto developer was planning an 87,000-square-foot, seven-storey facility at 154 Wicksteed Ave. in Leaside through media reports flagged by\u00a0concerned residents.<\/p>\n
\u201cIf we are running into challenges,\u201d the Ward 15 councillor said in an email, \u201cthen members of the public are operating with even less context as to how the city is hedging against the potential drawbacks of data centres.\u201d<\/p>\n
Chernos Lin worries that little consideration has been given to the building\u2019s environmental impact and demands on infrastructure such as water and electricity.<\/p>\n
The project in her ward is part of a growing flood of AI data centres being built across Ontario, driven by high-tech\u2019s unquenchable\u00a0demand for cloud computing storage and AI tools. And they are often being built with little public consultation.\u00a0<\/p>\n
According to Research and Markets, a platform providing markets analysis, Canada\u2019s data centre industry is forecast to grow to $2.8 billion by 2030 from $1.8 billion in 2024.<\/p>\n
Experts say the strain on electricity grids by such projects could lead to higher energy prices for local residents. And with\u00a0approval processes often opaque,\u00a0communities are left scrambling for answers.<\/p>\n
Last month, Toronto council approved Chernos Lin\u2019s motion demanding more information be made public about how the city handles AI data centres.<\/p>\n
The proposed building\u00a0and its vast conga line of servers running 24\/7\u00a0will be located in the Leaside Business Park near Laird Station on the Eglinton Crosstown LRT.<\/p>\n
And while\u00a0Leaside residents found out about the centre in an online media report,\u00a0details\u00a0are difficult to unearth by the public\u00a0because projects that don\u2019t need rezoning or site variances aren\u2019t required to submit full planning\u00a0applications.<\/p>\n
Instead, the project proceeded through site plan control \u2014\u00a0a review process run by Toronto\u2019s planning department \u2014\u00a0where staff review design and technical requirements before approving building permits \u2014 without public scrutiny.<\/p>\n
Lack of transparency<\/p>\n
\u201cThis approval authority is delegated to staff and no public notice is presently required,\u201d said Christian Ventresca, director of community planning for Scarborough district.\u00a0<\/p>\n
Microsoft\u2019s larger AI data centre projects in Ontario, including sites in Vaughan, Markham, and a mammoth\u00a0290,000-square-foot facility in Etobicoke \u2014 more than three times the size of the Leaside proposal \u2014 did require rezoning, yet\u00a0public\u00a0information about their energy\u00a0consumption\u00a0is still limited and difficult to find.<\/p>\n
Following an April 7 announcement by the Ontario government that Microsoft would expand its cloud and AI data centre infrastructure across the province as part of a $16-billion investment, Microsoft spokesperson Mary Warner told the Star that the company does not publish \u201csite-specific projections for energy consumption.\u201d\u00a0 \u00a0<\/p>\n
\u201cFor security and operational reasons, we don\u2019t disclose exact addresses or facility-level details,\u201d\u00a0Warner added. \u201cHowever, our footprint in Ontario and Quebec spans multiple communities, reflecting a regional approach to building resilient cloud infrastructure.\u201d<\/p>\n
This lack of transparency, Chernos Lin says,\u00a0can generate community concern and confusion, \u201cespecially for a use like an AI data centre with potentially significant environmental and infrastructural impacts.<\/p>\n
<\/p>\n
With a third of Canada\u2019s data centres located in Toronto, the strain on Ontario\u2019s electrical grid is expected to grow.<\/p>\n
Nathan Denette\/The Canadian Press file photo<\/p>\n
\u201cWe need to clarify\u00a0how the city is protecting the public interest when working on AI data centre proposals and explore any opportunities to further mitigate any impacts to the community,\u201d Chernos Lin said.<\/p>\n
Ontario\u2019s Ministry of Economic Development, Job Creation and Trade declined to comment on the province\u2019s AI data centre expansion plans.<\/p>\n
In an email to the Star, Mayor Olivia Chow acknowledged the \u201cgrowing importance of data infrastructure to Toronto\u2019s economy and to Canada\u2019s digital sovereignty,\u201d but said she supports Chernos Lin\u2019s call to review how AI data centres are regulated.<\/p>\n
\u201cIt is important to get this right,\u201d Chow said, \u201cto support economic growth and innovation, while ensuring transparency, responsible resource use and community input.\u201d<\/p>\n
Though city hall\u00a0worries about AI data centre infrastructure in Toronto being constructed\u00a0\u2018as-of-right,\u2019 meaning developers can build without special approvals,\u00a0Avi Goldfarb, an economist at the University of Toronto specializing in technology and AI, cautions policymakers to tread carefully.<\/p>\n
\u201cThere\u2019s nothing inherently special about a data centre business, for good or bad, relative to another business,\u201d Goldfarb said. \u201cIf other (businesses) do not need permission, I don\u2019t think there\u2019s any reason why data centres should.\u201d\u00a0<\/p>\n
Goldfarb says slowing down local AI infrastructure will only result in Canada\u2019s economy growing even slower in comparison to the world.\u00a0<\/p>\n
\u201cCanada has a productivity challenge \u2026 our economy hasn\u2019t grown, per capita, as fast as other economies,\u201d he said. \u201cAnd the way to improve productivity is through technological change. And AI, I think, is our best hope.\u201d<\/p>\n
Public opinion regarding AI data centres is mixed, according to an Abacus Data survey in March.<\/p>\n
It found Canadians are split, with 38 per cent viewing data centre development as positive and 37 per cent as negative.<\/p>\n
This trend carries over to perceptions of employment impacts which are similarly divided, with 37 per cent believing data centres will create jobs, while 35 per cent expect them to contribute to job losses. Only 10 per cent anticipate the creation of a significant number of high-quality jobs.<\/p>\n
Willson Cross, CEO and co-founder of Toronto-based Borderless AI, says that while his company has witnessed significant job creation tied to AI infrastructure, much of that employment is\u00a0distributed globally rather than in communities where data centres spring up.<\/p>\n
Electricity prices could rise<\/p>\n
Like Goldfarb, he says data centres give Canada a leg up in attracting global tech investment.<\/p>\n
\u201cThere\u2019s going to be so much partnership internationally,\u201d said Cross, whose company helps firms manage and pay global workforces.<\/p>\n
Microsoft says there will be about 100 full-time employees in Ontario and roughly 150 contractors to maintain and operate its sites once construction is completed, raising questions about whether the benefits outweigh environmental and infrastructure costs for local communities.<\/p>\n
U of T professor Daniel Posen, who studies the environmental impact of energy systems, said there\u2019s a misconception about data centres\u2019 affect on the electrical grid.<\/p>\n
He said projections from Ontario\u2019s Independent Electricity System Operator (IESO), shows data centres will consume about 10 per cent of the province\u2019s overall load growth over the next 20 years \u2014 less than what\u2019s expected for electric vehicles over the same period.\u00a0<\/p>\n
He cautioned, however, that increased strain on the grid could potentially lead to higher energy prices.<\/p>\n
\u201cThe harder it is to build out generation, the more we\u2019re competing for electricity,\u201d Posen said. \u201cThat\u2019s probably going to drive up prices.\u201d<\/p>\n
Microsoft\u2019s Warner says the company is working with utilities, system operators, and regulators to plan new electricity supply in advance so its data centres can operate without affecting local services.<\/p>\n
\u201cAs part of our Community-First AI Infrastructure commitments,\u201d Warner said, \u201cwe committed that we\u2019ll pay our way to ensure our data centres don\u2019t increase electricity prices for Canadians.\u201d<\/p>\n
Cameron Wade, founder of Halifax energy systems modeller, Sutubra Research, said Ontario may need to expand its power supply and grid to keep up with growing demand.<\/p>\n
\u201cIf we want all of this electrification, that has to be met with new generation,\u201d Wade said,\u00a0noting that IESO projects electricity demands to rise by 75 per cent by 2050.<\/p>\n
Even with new supply, Wade fears Ontario\u2019s Bill 40 \u2014 giving the province greater discretion over how large new electricity loads are connected to the grid prioritizing economic growth \u2014 could end up favouring\u00a0data centres over\u00a0residential needs.<\/p>\n
\u201cMore people are going to want electricity than we\u2019ll be able to bring online,\u201d\u00a0Wade warned. \u201cThere\u2019s going to be winners and losers.\u201d\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"When Don Valley West Coun. Rachel Chernos Lin found out a massive AI data centre was slated for…\n","protected":false},"author":2,"featured_media":658298,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,49,48,61],"class_list":["post-659776","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ca","tag-canada","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/659776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=659776"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/659776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/658298"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=659776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=659776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=659776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}