Mississauga Council Approves One-Year AI Data Centre Moratorium

The Mississauga City Council unanimously approved a one-year moratorium on the construction of artificial intelligence, enterprise, and cloud computing data centres on July 29, 2026. The decision prohibits the building of major digital infrastructure facilities for one to two years, allowing city staff to develop a planning framework and evaluate impacts on water usage, noise, greenhouse gas emissions, and electrical grid capacity.

Councillor Martin Reid introduced the motion following resident protests against a proposed 220,000 square foot facility at Tenth Line West in the Meadowvale Business Park. While the vote was unanimous, Mayor Carolyn Parrish expressed reservations regarding potential losses in tax revenue and the choice to implement a freeze rather than a study. However, she noted her sympathy for residents facing uncertainty about the technology.

The moratorium has prompted residents in Toronto to request similar pauses for projects in Etobicoke and Scarborough, where councillors are examining proposals from Microsoft and STACK Infrastructure. In contrast, Hamilton recently rejected a similar moratorium to protect industrial investment. The issue has become a central theme in the Mississauga mayoral race involving Mayor Parrish and former mayor Bonnie Crombie.

Prologis, which sought to build a data centre near Argentia Road and 10th Line, indicated it will likely appeal the decision to the Ontario Land Tribunal. The council is scheduled to vote on the final text of the interim control bylaw in three weeks.