A developer has withdrawn its plans to build a two-megawatt artificial intelligence (AI) data centre in Armour Township, Ont., due to public opposition to the project.
In a letter to the town council on June 1, Almaguin Data said because it didn’t own the land in the industrial park for the proposed project, it would have had little recourse in the face of public opposition over environmental concerns.
“Where a developer owns the land, Ontario’s planning system provides established recourse if approvals are unreasonably refused or delayed — most notably through the Ontario Land Tribunal,” the letter said.
“Without ownership, that recourse is unavailable to us, meaning every dollar spent on studies is at risk if approvals do not materialize.”
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In an earlier presentation to the town council, Almaguin Data founder Matthew Fuller said the project would have initially employed four employees, with the potential for between 10 and 12 workers as it expanded.
The company’s plan, he said, was to invest between $15 and $20 million over up to five years to expand the facility to a 10-megawatt data centre. It would have occupied an area of around three hectares.
Opposition to the proposed data centre has focused on environmental concerns.
When Jordan Gorlick, of nearby South River, Ont., learned about the project, she started to raise awareness on social media about her concerns.
“So many people come up here because it is cottage country,” she told CBC News.
Gorlick said she was especially worried about the amount of water the facility would have used.
In its withdrawal letter, the company said the data centre would have used less than 10,000 litres of water per day. It noted the amount is “materially less” than other industries in the area, such as local quarries.
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Despite the company’s assurances over water usage, Gorlick said the push to build more data centres in Canada could take an environmental toll over time.
“Clean drinkable water is a finite resource,” she said.
Gorlick said the impact increases if more data centres came online. “It all seems like we have a lot [of water] until one day there isn’t [any].”
According to York University research, there are currently 96 so-called “hyperscale” data centres in development in Canada with capacity of 100 megawatts or more.
But that planned expansion has come with growing opposition as well, from people concerned over high water, electricity and land usage for the facilities. Hundreds of people protested a Hamilton municipal planning committee earlier this month when as it was preparing to decide on a plot of land for a data centre.
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An online petition opposing the Armour Township project garnered more than 1,800 signatures.
