News Update

Ontario Municipalities Seek Clearer Provincial Rules for AI Data Centres

Growing concerns over the construction of AI data centres in Ontario have prompted municipalities to call for clearer provincial rules. The facilities’ energy use, water demands, and other impacts have sparked a backlash, with the Green Party joining the chorus of voices seeking province-wide regulations.

Green Party Leader Mike Schreiner has called for a moratorium on new data centre construction until a regulatory framework is established. “We’re not saying ‘halt AI’ or ‘we don’t want any data centres in Ontario,'” Schreiner said. “Just to have a moratorium in place until we have a proper regulatory framework that protects people, our communities, our economy, and our environment.”

Toronto city council has passed a motion urging the Ford government to establish a province-wide framework to address community concerns, including environmental impacts, noise, and electricity infrastructure, by the end of the first quarter of 2027. Mississauga city council has imposed a one-year moratorium on new data centres and will conduct a comprehensive review to evaluate their impact on municipal infrastructure, economy, environment, noise levels, energy, and water consumption.

One of the key issues facing municipalities is the lack of specific zoning or planning rules for data centres. In Mississauga, data centres are currently classified as warehouses, despite their high energy and water consumption. Cities are also concerned that the province may use ministerial zoning orders to overrule their decisions and allow data centre projects to proceed.

The Ford government has taken steps to address concerns about data centre electricity use, passing legislation that requires data centres to obtain government approval before connecting to Ontario’s energy grid. Energy Minister Stephen Lecce’s office stated that “no project will proceed unless it contributes to the local economy and the company commits to paying the full cost of energy.”

However, Schreiner has expressed concerns about data centres setting up natural gas generators to produce electricity, citing the potential for increased gas use. Ontario Tech University professor Daniel Hoornweg cautioned that any regulatory framework must be carefully considered to avoid driving data centre projects away from the province. Hoornweg noted that Alberta is becoming a popular destination for large data centres due to its ease of setting up natural gas generators.

Hoornweg believes that the backlash against data centres may be a symptom of a broader desire for regulation of AI use and development. “We the public want some reasonable controls on AI, which we are not seeing on the national or international level,” he said. Hoornweg argued that regulations on water and electricity use are insufficient and that a national or international discussion on AI guardrails is necessary.

Article and image source: lfpress.com