One-year freeze on new AI data centres proposed in Mississauga

A Mississauga councillor wants to temporarily halt the development of major data centres across the city while new rules are developed to regulate the rapidly growing industry. 

Ward 9 Councillor Martin Reid will bring forward a motion at the next council meeting that calls for an Interim Control By-law that would prohibit new large-scale digital infrastructure facilities, including artificial intelligence, cloud computing and hyperscale data centres, for up to one year while the city undertakes a comprehensive planning study. 

If approved, the temporary pause would apply city-wide and could be extended for a second year if additional time is needed to complete the review. 

The motion comes after months of growing concern from residents over a proposed Prologis data centre in Meadowvale, where nearby homeowners have raised questions about electricity demand, water consumption, noise, greenhouse gas emissions, traffic, emergency preparedness and the relatively small number of permanent jobs created by such facilities. 

“Council recognizes the economic opportunities associated with digital infrastructure while recognizing the need for a comprehensive municipal framework before permitting additional large-scale facilities,” Reid’s motion states. 

The proposal notes that while data centres are becoming increasingly important to Canada’s economy, artificial intelligence development, cybersecurity and national security, Ontario has yet to establish a planning or regulatory framework specifically for AI data centres and other large digital infrastructure. 

Under Reid’s proposal, city staff would review Mississauga’s planning policies, zoning rules and development approval process for data centres while consulting with utilities, Peel Region, Indigenous communities, industry representatives, environmental experts, academic institutions, residents and community organizations. 

The review would also examine electricity and water use, wastewater servicing, noise, emissions, taxation, employment impacts, public health, climate considerations and infrastructure capacity. 

Staff would also be asked to explore whether developers could provide voluntary community benefits such as new parks, recreation facilities or public art as part of future data centre projects. 

The motion also calls for staff to study possible regulations governing operational impacts such as noise, energy use, water consumption, heat generation and emissions, along with opportunities for greater public reporting on environmental performance where legally permitted. 

Proponents say data centres have become critical infrastructure as more of everyday life moves online. 

Everything from streaming services, online banking and Google Maps to cloud computing and artificial intelligence depends on data centres to store, process and move enormous amounts of digital information. 

The rapid growth of AI has dramatically increased demand for new facilities capable of handling advanced computing workloads. 

Despite their growing importance, data centres have become increasingly controversial in communities across Ontario. 

Residents near the proposed Prologis facility on Tenth Line West have questioned the amount of electricity and water needed to operate the building, the potential for noise from cooling equipment and backup generators, greenhouse gas emissions, and whether the facilities generate enough permanent jobs to justify their demands on public infrastructure. 

At a packed town hall hosted by Reid in June, more than 200 residents attended to question company officials and city planners about the proposal. 

Prologis has said its proposed facility would use a closed-loop cooling system designed to minimize water consumption and that the company would pay for all electrical infrastructure upgrades required to serve the site. 

The company has estimated the project would create approximately 790 construction jobs annually during development, about 75 permanent jobs once operational and more than $1.6 million annually in municipal property taxes. 

Following that meeting, Reid announced he would not support the Meadowvale proposal and pledged to seek a broader city-wide review of data centres. 

The council meeting is on July 29. 

– with files from Karen Longwell