“Sault Ste. Marie City Council Rejects Data Center Moratorium”

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After a 90-minute debate, city councillors in Sault Ste. Marie rejected a proposal to stop new data center projects in the northern Ontario city. The discussion centered around the approval of a cybersecurity monitoring and training center, including a data center, in the west end by city council back in December 2025, which was met with opposition from a local petition.

The project, a collaboration between cybersecurity company Protexxa and Missanabie Cree First Nation, aims to utilize artificial intelligence to address cyber issues for various organizations and governments.

During the recent council meeting, Ward 3 Coun. Angela Caputo suggested an interim control bylaw to pause any new data center proposals until additional policies and protocols are put in place. However, Mayor Matthew Shoemaker and several councillors expressed reservations about certain aspects of the proposal, leading Caputo to retract it.

Instead, it is anticipated that a new motion will be introduced at the upcoming meeting on August 31. This motion would task city staff with crafting a specific municipal framework for data centers in the city, including opportunities for public input.

It is unlikely that the outcome of the vote would affect the Protexxa data center project already approved for Yates Avenue in the city-owned industrial park, pending the completion of the property sale.

Graphic details plans for a data centre in Sault Ste. Marie's west-end industrial park.
Map details plans for a data centre in Sault Ste. Marie’s west-end industrial park. (Sault Ste. Marie city council agenda)

Mayor Highlights Existing Measures to Regulate Data Centers

During the debate, Mayor Shoemaker cautioned against treating all data centers equally. City staff pointed out the significant power and resource consumption associated with “hyperscale” data centers across North America, contrasting them with the comparatively lower requirements of the Protexxa project in Sault Ste. Marie.

Shoemaker emphasized that the city’s existing power infrastructure is capable of supporting the planned five-megawatt facility, which is a fraction of the total power capacity. He cited confirmation from the city’s electricity utility, PUC, which currently manages 120 megawatts of power consumption.

Shelves of data and storage.
According to York University, there are 96 ‘hyperscale’ data centres in development in Canada with capacity of 100 megawatts or more. (Supplied by Microsoft Canada)

Peter Tonazzo, the city’s planning director, noted that the Sault already accommodates facilities similar in size to Protexxa’s proposal. City CAO Tom Vair added that any new data center proposals, regardless of scale, would undergo council scrutiny for rezoning suitability.

Considering the existing safeguards in place, Mayor Shoemaker argued against a moratorium on future data center proposals, stressing that the decision-making process in approving the Protexxa project was thorough and considered various factors.

“While improvements can be made to the process, it is crucial not to undermine the integrity of the decisions taken previously,” Shoemaker remarked.

Tag: rewrite-pending

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