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.”
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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.
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 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.
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.
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The issue of AI data centres has been at the centre 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.
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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.”
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.
