Cities in North America Implement Data Center Moratoriums

Local governments across North America are implementing regulatory freezes to manage the rapid growth of energy-intensive AI data centers. In Ontario, Canada, the Town of Oakville became the first municipality in the province to pass a moratorium while conducting a planning study. On September 16, 2026, Mississauga City Council followed suit with a unanimous vote for a one-year moratorium on projects exceeding 10 megawatts. This freeze directly impacts a proposed 40-megawatt facility by Prologis, Inc., which expressed disappointment but remains committed to the city.

Other Ontario cities are taking varied approaches. Sault Ste. Marie is considering a moratorium for centers over 50 megawatts, while Greater Napanee amended bylaws to permit them on industrial lands. Toronto and Ottawa have directed staff to review policies or develop assessment frameworks, while Hamilton, Milton, and Burlington rejected freezes but continue to study environmental impacts.

In the United States, Raleigh Mayor Janet Cowell requested a six-month pause on facilities larger than 10,000 square feet to evaluate grid demands and noise levels. Similarly, the Newport Town Council approved a one-year moratorium to rewrite its Unified Development Ordinance. Conversely, the Chillicothe City Council voted 8-1 on September 14 to rescind a 60-day moratorium, clearing the way for Alignment Engine to build a data hall at a former paper mill after officials discovered existing codes did not prohibit the use.