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Home»Hamilton»Hamilton City Council Moves to Halt Data Centre Projects
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Hamilton

Hamilton City Council Moves to Halt Data Centre Projects

June 25, 20266 Mins Read
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Hamilton City Council Moves to Halt Data Centre Projects
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A temporary halt on data centre projects in Hamilton is now a step closer to happening after a city council vote on Wednesday afternoon.

City staff will provide an update to councillors at their next meeting, set for July 15, regarding a bylaw that would impose a moratorium on building facilities that securely handle digital information.

The rise of artificial intelligence (AI) has sped up the need for data centres, leading to protests across Canada about the significant water and energy demands of these operations.

Right now, Hamilton doesn’t have specific regulations for data centre construction. They fall under general industrial rules instead. On June 16, the city’s planning committee unanimously backed a motion from Coun. Nrinder Nann (Ward 3) calling for a pause in development.

Nann believes her motion might be unique in Canada based on her research of over 90 municipal councils. She mentioned she shared copies of her motion with members from 21 different councils who were interested.

The goal, according to Nann, is to give leaders time to review existing city regulations and possibly suggest improvements while considering future data centre developments.

This review would look at various factors like energy and water consumption, as well as noise and heat effects, as stated in the motion.

A background report indicated that the pause would last one year but could be extended up to two years if necessary.

Impact of Moratorium on Proposed Developments Uncertain

City officials noted on Wednesday that there are currently no site plan applications for data centre developments pending before them.

However, there are at least two proposals being considered:

A pitch made by the Digital Research Alliance of Canada (DRAC) “to build, own and operate a National AI Compute Facility” at a waterfront site known as Steelport. This former steel mill location is owned by Slate Asset Management. MP John-Paul Danko from Hamilton West-Ancaster-Dundas has mentioned that an announcement about which project will receive funding through the government’s AI Sovereign Compute Infrastructure Program should come this fall. A proposal from s2e, an Ontario firm looking to create a data centre along with an “innovation hub” at Mc Master University’s old building. The west-end property is part of Mc Master Innovation Park, which supports startups. Mc Master’s board of governors will decide whether they will back this proposal.

DRAC informed CBC Hamilton they couldn’t arrange an interview regarding the proposed moratorium this week.

S2e CEO Milfred Hammerbacher said it’s too early to determine how a development halt might affect their proposal beyond stating that “it would not have a positive impact.”

Mc Master University chose not to comment on the proposal right now, saying it won’t share more until its due diligence phase wraps up on June 30.

An Amendment for Mc Master’s Data Centre Exemption Was Rejected

Hammerbacher co-signed a letter dated June 15 sent to the city planning committee alongside Gailene Tobin Vandenheuvel, CEO of Mc Master Innovation Park. In it, they suggested exempting “smaller scale data centres that make use of existing structural footprints established primarily to support research activities.”

Councillor Brad Clark introduced an amendment containing similar language during Wednesday’s meeting but it was rejected with a vote of 14-2.

The Ward 9 councillor expressed concern that this moratorium could “kill this investment” at Mc Master and stop researchers from having local storage options for their data.

Clark also acknowledged concerns surrounding data centres but expressed worries about Hamilton exceeding its authority in regulation. He stated that while it’s important for cities to ensure proper infrastructure support for developments, it’s not their role to control how companies utilize water and energy resources.

A development moratorium could infringe upon companies’ rights over their land use and may lead the city into legal challenges; he predicted it would likely face appeal before the Ontario Land Tribunal.

National group still going ahead with Hamilton data centre proposal

The organization behind a proposed data centre at Hamilton’s waterfront confirmed its plans remain active despite recent discussions about halting new projects. The Digital Research Alliance of Canada intends to build and manage a “National AI Compute Facility” on land previously used for industry owned by Slate Asset Management. Recently denied permission after widespread protests against potential developments related to these facilities.

The Moratorium Includes A 50-Day Appeal Period

The background report explained interim control bylaws as: “the only tool available in the Planning Act to pause a use that is already permitted by zoning laws while further studying its implications.”

Chief planner Anita Fabac mentioned any new bylaw would come with notice period lasting twenty days followed by fifty days allotted for appeals before coming into effect.

City solicitor Lisa Shields clarified that under current terms developers wouldn’t be able request exemptions based upon circumstances described within proposed guidelines. Data centres have faced increased scrutiny recently at city hall with hundreds attending public meetings alongside nearly two thousand submissions protesting potential plans relating specifically towards those situated around Steelport since early June earlier combined efforts between community voices voiced grievances regarding overall impact associated such establishments generally perceived among constituents yet highlighting importance open communication remains vital moving forward.

This Debate Could Influence Future Investments

Norm Schleehahn who serves as acting general manager overseeing both planning aspects along economic progress offered his perspective suggesting ongoing discussions revolving around topic generated considerable reputational damage impacting perception among tech-focused firms considering establishing presence locally here within region adding additional context mentioning “city remains open business wise” emphasizing eagerness welcoming forthcoming investments targeting multiple sectors particularly manufacturing industries highlighting upcoming opportunities arising during interviews responding queries posed various individuals present throughout sessions deliberated matters discussed detailing specifics afterwards providing updates accordingly needed refining approach aligning future outcomes accordingly while ensuring sustainability remained priority driving decisions overall reviewed carefully reflected upon bringing change positively initiated through means fostering collaboration enhancing growth prospects further down line! Nann made slight adjustments today aimed clarifying intentions behind prior motions submitted earlier changing wording affirmatively reflecting staff returning reports confirming progress expected next month detailing particulars studied comprehensively thus motion passed successfully achieving majority consensus tally displaying final outcome resulting gathering votes counted equalizing fifteen supportive contrasting instance registered explicitly opposed where Clark asserted dissent articulately thereby marking contrast evident displayed showing differing viewpoints prevalent amongst representatives during course proceedings navigating ahead collaboratively engaging stakeholders beneficially maintaining respectfulness ultimately benefiting entire community engaged participatively!

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