Hamilton Weighs First-of-its-Kind Data Centre Moratorium
AI-generated image · Bay Street Wire
City council will vote on a one-year pause to evaluate energy, water, and noise impacts as AI-driven infrastructure demand surges.
Hamilton is poised to become the first Canadian city to implement a moratorium on new data centres, as Global News Toronto first reported. A vote is expected Wednesday on a proposal sponsored by Coun. Nrinder Nann for a one-year pause, which council could potentially renew for a second year.
The move follows a June decision by Hamilton's committee of adjustment to reject an application from Slate Asset Management to split off a portion of Steelport—a three-square-kilometre industrial harbourfront redevelopment—for a potential data centre campus. Slate managing director Steven Dejonckheere has appealed that decision, arguing a moratorium is "kind of a sledgehammer tool" that questions the city's openness to investment. Dejonckheere noted the land would likely not have been used exclusively for data centres, envisioning the site as a logistics and manufacturing hub.
According to Global News Toronto, supporters of the pause, including resident and tech researcher Bhavyatta Bhardwaj and psychotherapist Danielle Sheahan, argue the city needs time to establish governance and guardrails. Local concerns center on the environmental footprint of AI-ready facilities, specifically their high demand for electricity and water, as well as noise pollution and potential increases in utility bills.
While critics warn the move could jeopardize multimillion-dollar investments in a city already impacted by U.S. tariffs, Nann stated the city will not be pressured by urgency. The proposal is gaining traction nationally; Nann has sent copies of the motion to 10 other cities, and similar debates are expected this month in Vancouver, Mississauga, and Burlington.