City officials in Sault Ste. Marie, Ontario, have unanimously approved a temporary ban on large-scale data center applications while municipal guidelines for these AI-driven facilities are developed. This decision follows previous opposition from some councillors to a complete halt on data center projects in the region.
The council members expressed concerns about the lack of information regarding the environmental impact and freshwater usage of these data centers. This sentiment was echoed by residents at a recent informal public meeting hosted by two local councillors.
The moratorium specifically targets data center applications exceeding 50 megawatts in power consumption, equivalent to the energy needs of over 37,500 homes. The city’s planning director aims to define “large scale” data centers in consultation with industry experts based on factors such as power consumption, noise output, heat generation, and cooling requirements.
The city’s chief administrative officer expects to present a comprehensive framework for data centers to the council early next year. Public consultations, involving input from residents and local First Nations, are set to commence soon to ensure a diverse range of perspectives are considered in the decision-making process.
While there are currently no formal proposals for data centers in Sault Ste. Marie, discussions have begun about a potential 400-megawatt AI data center project in the region led by Red Jar Energy Partners and Algoma Steel, pending review by the Independent Electricity System Operator.