AI data centres face growing backlash in Ontario communities

Some municipalities are weighing moratoriums or studies as residents raise concerns about the projects’ impact.

Article content TORONTO – AI data centres are becoming a hot-button issue in Ontario, with some municipalities considering whether to put the brakes on new projects. Hamilton Coun. Nrinder Nann says data centres will be a major issue in upcoming municipal elections.

Recommended Videos “Residents are reaching out to their councillors and mayors about this because it’s the only level of government that appears to be listening at this point,” Nann said. “Our residents are telling us this issue is influencing their votes. They are also sending that message to their MPs and MPPs. . . .

It is imperative for the provincial government to listen very carefully to what residents are asking for.” Hamilton city council will vote on a bylaw proposed by Nann that would place a moratorium on AI data centre construction until the impacts can be studied. There is a push for a similar moratorium in Mississauga after residents voiced concerns about a proposed data centre at a public meeting this month.

York Region is also considering whether to study the impacts of data centres, though without a moratorium. “Many residents have reached out because they feel it is an important issue, because we need to understand what we are going to allow and whether we can meet all the needs,” York Region Coun. Carol Davidson said.

Ontario has had data centres for decades, but the new “hyperscale” facilities used to support artificial intelligence are sparking a backlash that isn’t limited to the largest projects. Public concerns have also been raised about smaller projects in Quinte West and Burlington. The provincial government predicts that by 2035, data centres will account for about 13 per cent of new electricity demand in Ontario.

In a statement, Energy Minister Stephen Lecce said “no project will proceed unless it contributes to the local economy and the company commits to paying the full cost of energy.” In December, the Ford government passed the Protect Ontario by Securing Affordable Energy for Generations Act, requiring provincial approval before projects can connect to the electricity grid. “(This) puts in place clear guardrails and gives Ontario the authority to prevent projects from connecting to the grid if they fail to meet these expectations,” Lecce said.

Leslie Rusch, a Canada Research Chair specializing in communications systems for cloud computing, likened data centres to infrastructure. Just as cars need roads to function, artificial intelligence needs computing power. It makes sense for Canada to build its own data centres rather than rely entirely on other countries, she said, but the benefits to local communities can be minimal.

“They are amazing places. You have an incredible concentration of computers, but there are very few jobs that come with it because they are very automated,” she said. “(But) if you rely totally on the global economy, you can find yourself vulnerable, and data centres are becoming very important.”