Oakville has implemented a one-year halt on new data centres, marking a pioneering move among Ontario municipalities as local officials address concerns related to the surge of facilities supporting artificial intelligence.
Town councillors have also instructed staff to review whether the town’s existing regulations should be revised to tackle potential issues such as noise, vibration, emissions, and broader land-use considerations associated with data centres.
Mayor Rob Burton emphasized that the decision was not driven by fear or in response to any specific application but rather as a proactive measure to ensure proper oversight.
Oakville’s moratorium aligns with Mississauga’s upcoming vote on a similar pause, while other Ontario municipalities explore ways to regulate the burgeoning growth of data centres.
Although there are no formal data centre applications in Oakville, Hive Digital Technologies announced plans in May for a 320-megawatt AI facility in the Greater Toronto Area, with a target completion date in the latter half of 2027. Records indicate a Hive subsidiary acquired property in Oakville shortly before the announcement.
Councillor Tom Adams, representing the area where the property is located, supported Oakville’s moratorium plan, emphasizing the importance of studying how data centres impact critical infrastructure and residents’ well-being.
In response, a spokesperson for Hive expressed respect for Oakville’s decision to develop a planning framework for data centre development, emphasizing the company’s commitment to transparency and community trust.
Numerous municipalities are exploring moratoriums on data centres due to heightened competition among tech giants driving demand for these energy-intensive facilities. While Canada currently has a limited number of large hyperscale data centres, more are in the pipeline, including Meta’s plan for a one-gigawatt data centre in Alberta.
Waterloo Region and Toronto have taken steps to investigate data centre impacts and advocate for provincial guidelines to assess and manage proposed developments. Hamilton previously introduced a moratorium proposal that did not pass, and Mississauga is set to vote on a similar proposal next month.