Canada AI Data Centre Boom Sparks Local Moratoriums

Canada is experiencing a surge in artificial intelligence data centre proposals driven by the federal government's goal to ensure sovereign AI and reduce reliance on U.S. technology. Prime Minister Mark Carney unveiled the AI for All strategy to increase business AI adoption to 60 per cent by 2034, supported by billions in investment, including up to $700 million earmarked by the Treasury Board of Canada in 2024.

Development is heavily concentrated in Alberta, where proposed projects could increase the province's share of national capacity from 3 per cent to 93 per cent. This includes a planned $13-billion-plus facility in Sturgeon County and a one-gigawatt complex by Meta Platforms Incorporated. To protect the power grid, the Government of Alberta requires developers to build their own natural gas power generation capacity.

Public backlash has grown over electricity demand, water consumption, and noise pollution. In Ontario, Oakville passed a one-year construction moratorium, and Mississauga voted to prepare a similar bylaw. While public protests occurred in Hamilton, a moratorium vote there was defeated. In Alberta, the Alberta Utilities Commission rejected a proposal in Olds due to its proximity to town, and the Sturgeon Lake Cree Nation is challenging a $70-billion gas-powered project over water licence consultation.

Provincial leaders have responded with varying strategies. Ontario Premier Doug Ford characterized opponents as misinformed but stated the province will prioritize closed-loop cooling systems and may implement higher electricity rates for large-scale projects. Alberta Premier Danielle Smith launched an online explainer to address resident concerns.