Province and municipalities clash over AI data centre plans

Ontario data centres face local pushback as cities weigh noise, water use and environmental impact while the province pushes ahead. See where approvals stand

The Ontario government and several municipalities are taking different approaches to AI data centre development, as local officials weigh concerns about noise, water use and environmental impacts. Premier Doug Ford says the province wants to move ahead with data centres and keep control over where they are built. But Oakville, Mississauga and Sault Ste. Marie have approved temporary pauses on new projects, while Hamilton and Burlington rejected similar motions. The Association of Municipalities of Ontario is asking the province to give communities more say and to require projects to deliver local benefits. Provincial officials say data centre companies should pay premium electricity rates or supply their own power, while experts caution that hosting a data centre does not necessarily mean data stays in Canada.