The City of Ottawa is set to develop a new policy regarding data centers, following a unanimous decision by council to address concerns around massive “hyperscale” projects. The initiative was proposed by Rideau-Vanier Coun. Stéphanie Plante, highlighting the absence of specific regulations for data centers in Ottawa’s primary planning document, despite existing zoning permissions in certain industrial zones.
Plante emphasized the importance of finding a middle ground between those advocating for a complete ban on data centers and companies seeking favorable treatment. Her motion aims to establish a balanced approach that considers the benefits data centers can bring to communities, such as tax revenue, alongside potential environmental impacts like water and power consumption.
The motion directs city staff to create a framework for evaluating data centers based on their size, environmental footprint, and overall impact. This framework, including environmental standards, will be presented for council approval next year. In the interim, staff will notify council of any proposals for hyperscale data centers, enabling councillors to enact temporary control measures if necessary.
Marcia Wallace, the city’s general manager of planning, development, and building services, explained that implementing an interim bylaw would enable the city to halt pending applications until the regulatory framework is finalized. Debbie Stewart, general manager of strategic initiatives, described hyperscale data centers as large facilities consuming at least 50 megawatts of power, typically catering to AI applications.
Hydro Ottawa has reported a surge in applications from high-load customers, predominantly from data centers, creating significant pressure on the city’s infrastructure. The forthcoming framework will assess whether varying regulations should be applied based on the size and nature of data centers.
Councilor Tim Tierney commended the motion for not imposing a moratorium, citing ongoing efforts by federal and provincial authorities to establish rules for data centers. In a similar vein, Mayor Mark Sutcliffe endorsed Ottawa’s approach as striking the right balance between data sovereignty and safeguarding local communities from potential adverse impacts of large-scale developments.
The stance taken by Ottawa contrasts with Hamilton’s rejection of a moratorium on data centers this year. Mayor Sutcliffe emphasized the importance of ensuring data security while also safeguarding neighborhoods and the environment from the effects of extensive developments.