Hamilton’s Data Centre Freeze Might Set a New Trend in Canada

Hamilton’s decision to halt data centre development could be the first of its kind across Canada, according to a professor who studies these facilities.

“Hamilton is in a pretty cutting edge place,” said Anne Pasek, the Canada Research Chair in Media, Culture and the Environment.

Pasek, who teaches at Trent University, mentioned to CBC Hamilton that while other places have local moratoriums, “I do believe Hamilton’s first in Canada.”

On June 24, city council approved a motion for a moratorium on building facilities that securely store, process and distribute digital information.

The rise of artificial intelligence (AI) has pushed for more data centres, which has led to protests around Canada about issues like water and energy usage needed for these sites.

Right now, Hamilton regulates data centres under general industrial rules. Coun. Nrinder Nann (Ward 3) introduced the moratorium motion, arguing that pausing would give city staff and officials time to evaluate current regulations and suggest any necessary improvements or updates.

Nann also feels her motion might be unique in Canada. She previously told CBC Hamilton she shared copies of her motion with members of 21 different councils nationwide who were interested.

Are Regulations Lacking?

Pasek indicated that Nann’s motion might inspire similar pauses elsewhere.

The researcher was present at Hamilton’s planning committee when Nann’s motion was passed to “witness history happening,” listening to numerous residents who shared their views on the moratorium.

Pasek told CBC Hamilton she’d like to see the federal government establish environmental standards for data centres-like ensuring they utilize entirely renewable energy-and require public consultation so developers must inform communities about their plans and how they’ll address any negative effects.

Innovation, Science and Economic Development Canada earlier informed CBC Hamilton that as demand for AI computing increases, “Canada’s approach is to align new data centre development with clean energy expansion, strong environmental standards, and benefits for local communities.”

WATCH | An AI-driven data centre boom is coming:

A hyperscale AI data centre boom is coming

A surge in hyperscale AI data centres in Canada is on the horizon, promising economic growth and tech independence. However, as CBC’s Nora Young discusses, there’s rising resistance regarding how these large power-hungry facilities affect nearby communities.

Shion Guha, a professor at the University of Toronto studying data centres as well says that the current unregulated situation makes it hard for governments like Hamilton’s to respond proactively when new developments arise.

“That’s not a very good way of doing governance, particularly around infrastructure projects,” he told CBC Hamilton. “We understand in Canada that the proper way to do things is some mutual tripartite agreement between federal governments, provincial governments and local governments but right now we’re not really seeing that.”

In light of lackluster federal action, Pasek believes “it’s really helpful” for municipalities to create local rules considering specific regional conditions.

Ultimately she stated it’s best “to put everything in the open” so decision-makers and communities can approve or deny projects with complete understanding.

Hamiltonians protest a data centre development outside city hall on June 4. (Justin Chandler/CBC)

A Call for More Transparency from Residents

Pasek has collaborated with the Council of Canadians to develop a toolkit aimed at individuals wanting to challenge proposed data centre projects. This includes basic facts about what these facilities are all about along with their environmental effects and how people can get involved during development processes.

Katie Steinfeld from Vaughan currently tracks potential developments independently stating there’s just too much information involved when assessing prospective projects related to data centres.

“There’s just so much to go through and understand,” she added.





Taking up real estate work professionally while tracking Ontario Data Centre developments on her spare time helped her keep tabs on publicly known proposals throughout province activities.

Please note I’m neither anti-AI nor against having more Data Centers; I simply think people deserve better information.” It’s challenging currently she pointed out finding accessible details regarding possible facility proposals within province boundaries.”

If developers were more transparent Steinfeld suggested it might help lead towards broader acceptance since folks would feel like their worries got taken into account. She’d also love if province could introduce new planning guidelines making management standardized across Ontario that’s simple enough everyone understands easily enough.” When prompted directly regarding Steinfeld suggestions response lacked specifics.

Evan Robinson representing Ontario Ministry Economic Development reached out providing statement saying: “No digital infrastructure project will proceed unless it contributes positively towards economy while company agrees covering full cost related energy requirements.” He continued further explaining legislation empowers government preventing connection grid failing meet those expectations.

The city council anticipates hearing recommendations from staff by July 15 pertaining language enacting bylaw establishing aforementioned moratorium targeting future Data Center construction activity.

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