Local politicians are divided over how to handle the growing industry.
Local politicians are divided over whether Ottawa should put the brakes on new large-scale AI data centres amid growing pressure on the city’s electricity grid.
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Data centres are buildings filled with computer servers that store and process huge amounts of information. They support everyday services like cloud storage and online banking. AI also relies on data centres, but it can require a lot of electricity both to run the computers and to keep them cool.
Cities across Ontario are wrestling with how to handle the growing industry. Oakville has imposed a one-year moratorium on new data centres, while Mississauga is moving toward a similar pause. Toronto is studying possible new rules, while Hamilton rejected a moratorium.
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The province has also recently released a framework that would require data centres to pay dedicated electricity rates and to use closed-loop cooling systems. It would also favour projects that brought economic and community benefits.
Premier Doug Ford has already urged Ontario to embrace data centres, arguing they are important to keeping Canadians’ data in Canada.
Ottawa already has at least a half-dozen data centres operating across the city.
