Sault Ste. Marie Halts Large-Scale Data Center Development

The Sault Ste. Marie City Council unanimously passed resolutions to halt the development of large-scale data centers until the city establishes a formal municipal framework. The council directed staff to prepare an interim control bylaw for a September 21 meeting, which will impose a moratorium on applications for facilities exceeding 50 megawatts.

This regulatory freeze follows a partnership between Algoma Steel and Red Jar Energy Partners to evaluate the Algoma Data Center, a proposed 400 MW facility targeted for operation by October 1, 2029. The Independent Electricity System Operator has already received an active application for the project.

The decision responds to a grassroots anti-data center movement and extensive public engagement. The forthcoming framework will define data centers and set regulations for water, noise, and power usage, with a final version expected in the new year. City planning director Peter Tonazzo stated the city is "leaning towards a more restrictive approach" to protect the public interest.