AI data centres have taken Canada’s city councils by storm, but where is Ottawa?

In recent weeks, Canadians across the country have been brought together by two completely unrelated subjects: soccer and artificial intelligence (AI) data centres. Millions have tuned in to watch the Canadian Men’s National Team’s run to the Round of 16 in the FIFA World Cup, but proposed AI data buildouts have also sparked strong levels of public engagement in communities from coast-to-coast. Various town halls and city council meetings have played host to citizens worried that proposed data centres could strain the local power grid, deplete freshwater aquifers, or create threatening noise levels. “We know from the uprisings across the United States and increasingly in Canada as well, from Olds, Alta., to Hamilton, , to Sherwood, Sask., to Nanaimo, B.C.,... there is a rising tide of the Canadian public expressing deep resistance to these hyperscale data centres,” said NDP Leader Avi Lewis in an interview with The Wire Report. In Hamilton, Saint John, N.B., and Vancouver, hundreds of residents are protesting proposed facilities in their communities. Online initiatives looking to stop construction on AI data centres have garnered thousands of endorsements, while multiple petitions on the subject have been brought before the House of Commons. While data centres are not a novel concept in the digital economy, the rise of AI has necessitated the design and construction of new facilities to house the infrastructure needed to power large language models. Analysis from The Logic found Canada has 309 built and proposed data centres located in nearly every province and territory. These types of facilities occupy 1.5 per cent of the globe’s energy demand, a figure that has grown exponentially in recent years, according to the International Energy Agency, and some data centres annually require millions of litres of water to cool their system structures. Additionally, data centres facilitate the adoption of a disruptive technology believed by some Canadians to be imminently harmful to the labour market and, in some extremes, human existence. However, the Liberal government’s highly-anticipated AI strategy, unveiled last month, provided little regulatory clarity or moral guidance on the construction of new data centres, according to municipal and federal leaders. “Canada is uniquely positioned to lead in building this infrastructure responsibly and sustainably,” read the policy. “Canada needs domestic data centre capacity and cloud services — not only to power research and commerce, but to accelerate homegrown innovation, incentivize collaboration, and create a magnet for talent, intellectual property, and investment using leading-edge technology.” Ottawa also recently conducted a federal consultation specifically aimed at “enabl large‑scale commercial AI data centres.” “I think the government has made its views on data centres clear,” said Lewis. “Their silence on the question of the impacts on local water, air, noise, and jobs is a statement in and of itself.” “We're not luddites. We believe this technology can be used in exciting ways if it's used responsibly, but we don't have a regulatory framework for AI, let alone for the data centres.” Lewis called for a national pause on data centre approvals and amendments to the Impact Assessment Act, which he said would ensure that new developments meet rigorous environmental and social standards. “We really need the federal government to step up and regulate,” said the NDP leader. “I have not heard from a concern for the local communities that are going to bear the impacts. It really does seem they are enthralled by the power and wealth of this industry, and I think it’s irresponsible.” “I mean, how is this not a national issue on a regulatory level alone?” Federal silence creating more work for local officials, says Hamilton councillor Instead, the debate is unfolding predominantly at the municipal level, with concerned residents bringing their frustrations to local representatives. “What is the provincial and federal regulatory framework for AI data centres, especially in the context of the AI for All strategy?” asked Hamilton Councillor Nrinder Nann. “A lot of residents have said, ‘why isn’t the federal government taking time to stipulate what they expect from AI data centre development going forward.” “Their expectation of the federal government was that it would have rolled out a comprehensive framework that would have given Canadians the assurances that… this policy isn’t about mapping the least resistant way forward for AI data centres and mega-tech companies.” In June, Hamilton became the first Canadian municipality to implement a moratorium on data centre development, after a motion moved by Nann passed through council. “This is not a uniquely Hamilton phenomenon and these questions are not unique to Hamilton,” said Nick Tsergas, a Hamilton-based journalist who has advocated against data centre development. “They apply to every municipality in the country.” “This is a national issue that is manifesting locally,” In an interview with The Wire Report, Nann said 21 municipal leaders from other communities have asked for a copy of her motion, leading her to believe more moratoriums could be brought forward in other parts of Canada. “Many, many municipalities feel blindsided right now that these projects are landing in their communities with pre-approvals,” she said. Mississauga, Ont., where a proposed hyperscale data centre has also encountered resistance, will hold a city council vote on a moratorium later this month. Other stakeholders are pointing fingers at Ottawa, like Chris Waterson from Save Lorneville, an advocacy group pushing back against a proposed AI data centre and corresponding gas power plant near Saint John. Watson said his organization has met with local officials, as well as provincial representatives, including New Brunswick Premier Susan Holt, though they left with an impression that there was “pressure from the federal level to get these things built.” “It’s frustrating for us,” said Watson. “You can raise all these concerns but, in the end, if that pressure is coming from the federal levels, it just seems like it’s going to get done at all costs.” “So, the federal government is turning a blind eye to the actual local impacts.” In a statement, AI Minister Evan Solomon’s (Toronto Centre, Ont.) office said most data centres are “built and operated by private companies, working with provinces, municipalities, utilities and local communities.” “The federal government supports this development through targeted programs that help mobilize private investment, expand Canadian-controlled compute capacity and advance strategic infrastructure,” read the statement. “The government is also investing directly in public and secure computing infrastructure to support researchers, businesses and government.” “The Minister is engaging regularly with provincial and municipal leaders, Indigenous partners, industry and other stakeholders to understand local priorities, infrastructure needs and community concerns.” Solomon’s office turned down repeated requests for an interview with The Wire Report. According to a spokesperson, the minister is currently on tour. On Tuesday, he stopped in Manitoba to speak to the Winnipeg Chamber of Commerce about the government’s AI strategy. Solomon had previously been asked by youth leaders whether he would consider implementing a national ban on data centre development during an event on Parliament Hill earlier this year, to which he said the government would not consider a moratorium. Data centre resistance represents broader opposition to AI: Lowan The Liberal government’s position has also drawn criticism from provincial leaders, including BC Green Leader Emily Lowan, who has openly called for increased restrictions on AI data centres. “Over the past two months, as the Carney government has pushed forward…, we’ve seen an outpour of resistance across the country,” said Lowan in an interview. “It’s very clear to me that the federal government is going to be moving at an aggressive pace, emulating the United States for this unbridled strategy.” “I think we see so many young people out at these protests because they are deeply concerned about what AI means for their future and our planet. I think it represents this broader fight and this new horizon of resistance.” Still in B.C., Nanaimo Councillor Paul Manly has led his community’s response to a proposed data storage facility, which he said has been the subject of strong community opposition. “What we really need is regulation,” said Manly, the former MP for Nanaimo—Ladysmith from 2019 to 2021. “Should we be building data centres for the oligarchs that control all our social media and are data mining and stealing intellectual property? Or, should we be building data centres for our own sovereign needs?” Public opinion data suggests Canadians have decidedly mixed views on data centres, with equal numbers of respondents providing positive and negative viewpoints. A poll conducted by Abacus Data revealed a plurality of Canadians opposed federal backing for data centres, and stated they were unlikely to support a proposed facility in their community. According to Anne Pasek, a cultural studies professor at Trent University in Peterborough, Ont., Ottawa has abdicated from its role in guiding the debate around data centres throughout Canadian municipalities. “If I were made king of Canada, I would probably have taken a special interest in data centres when I was developing an AI strategy for the nation,” Pasek, also the Canada Research Chair in Media, Culture and the Environment, told The Wire Report. “The Carney government hasn't taken that approach.” “A lot of people talk about there being a democratic gap between the way that industry and city councils will interface with citizens, and I think having an actor at the federal level who isn’t bound by those pressure points in the context of a city council, that could be quite helpful.” Pasek said, if the government wants to enhance data centre development, it should look to standardize procurement processes or establish best practices to guide the industry “away from their worst impulse.” “That way,” she said, “it could ensure that we don’t have gas generators standing up the energy requirements of these facilities.” dlegree@thewirereport.ca

AI data centres have taken Canada’s city councils by storm, but where is Ottawa?

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By Davis Legree
|July 8, 2026

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AI data centres have taken Canada’s city councils by storm, but where is Ottawa?

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