After a 90-minute debate on Monday evening, city council members in Sault Ste. Marie rejected a proposal to stop new data center projects in the northern Ontario city. The discussion centered around contentious artificial intelligence facilities following a local petition opposing a cybersecurity monitoring and training center, including a data center, approved by the city council in December 2025 for the west end.
The project, a collaboration between cybersecurity firm Protexxa and Missanabie Cree First Nation, aims to utilize AI for addressing cyber issues for organizations and governments. Councilor Angela Caputo suggested a temporary control bylaw to pause any new data center proposals until additional policies were established. However, Mayor Matthew Shoemaker and other council members hesitated about certain aspects of the proposed moratorium, leading Caputo to withdraw the motion.
Instead, a new motion is anticipated at the upcoming meeting on Aug. 31, tasking city staff to create a specific municipal framework for data centers in the city with provisions for public input. The approval or rejection of this motion is unlikely to impact the already approved Protexxa data center project on Yates Avenue in the city’s industrial park, pending the finalization of the property sale.
During the debate, Mayor Shoemaker cautioned against generalizing all data centers, highlighting the distinction with “hyperscale” facilities that require significant resources. Protexxa clarified its plan’s modest energy consumption compared to larger facilities, indicating compatibility with the city’s power grid. The city’s planning director, Peter Tonazzo, emphasized the existing presence of similar-sized server rooms in the Sault, while CAO Tom Vair reiterated the necessity of council approval for rezoning any proposed data centers.
In light of the existing regulatory processes for scrutinizing data center applications, Mayor Shoemaker argued against implementing a moratorium, citing the comprehensive review and considerations involved in approving the Protexxa project. While acknowledging room for process enhancements, he defended the integrity of the previous decision-making process regarding data centers.