Sault Ste. Marie halts new AI data centres above 50 MW

City councillors in Sault Ste. Marie, Ont. voted unanimously Monday to block new applications for large-scale AI data centres drawing more than 50 megawatts, pausing any project above that threshold until staff draft a municipal framework for the facilities.

CBC reported that 50 megawatts is enough electricity to power more than 37,500 homes. Members of council said there "isn't enough information available on the environmental impact and fresh water demand of large-scale data centres" for them to be considered at this stage. An interim control bylaw formalizing the moratorium is set to be brought forward at the Sept. 21, 2026 council meeting.

The unanimous decision came three weeks after some councillors voiced opposition to a complete pause. Ward 3 Coun. Angela Caputo had earlier proposed an interim control bylaw to freeze data centre proposals, but her ask was met with hesitancy from Mayor Matthew Shoemaker and several councillors, and Caputo withdrew the motion. This week's vote was moved by Ward 2 Coun. Luke Dufour, Ward 1 Coun. Sandra Hollingsworth, Caputo, and Ward 2's Lisa Vezeau-Allen.

The pause follows public opposition to a cybersecurity monitoring and training centre proposed for the city's west-end industrial park by Protexxa, which council approved in December 2025. More than 2,600 people signed a petition against the Yates Avenue facility. Per CBC, it is currently undetermined how much water Protexxa would require to cool the data centre; the company says it is exploring how snow can be used to mitigate fresh water use, though questions remain about viability. Councillors Caputo and Vezeau-Allen were joined at a recent event by Garden River First Nation Chief Karen Bell and Batchewana First Nation Chief Mark McCoy opposing large-scale AI data centre development.

Two AI specialists in our Who's Who directory shared the CBC report this week.