Toronto seeks reports on two proposed AI data centres amid power and water concerns
City council requested assessments of proposed projects in Scarborough and Etobicoke. Mississauga meanwhile approved a one-year pause on all new data centre development.
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Toronto City Council has requested detailed reports on two proposed data centre projects — one in Scarborough and another in Etobicoke — as residents and officials raise questions about electricity demand, water consumption, and environmental impacts.
Council passed two separate motions last week. Councillor Parthi Kandavel's motion seeks reports on a proposed STACK Infrastructure data centre expansion at 3650 Danforth Avenue in Scarborough, while Councillor Vincent Crisanti called for similar assessments on a separate facility planned for 48 Lowes Place in Etobicoke. Both motions request information on the projects' potential impacts and a city policy review on data centre development.
The requests follow complaints from residents concerned about how the facilities could strain local electricity systems and what environmental consequences might result.
Meanwhile, Mississauga City Council approved a plan to pause new data centre development for up to one year while the city assesses impacts and updates its policies. Mississauga has received a rezoning application for a new data centre in the Meadowvale Business Park that would be considerably larger in both size and scale than existing facilities in the city.
Martin Karsten, a computer science professor at the University of Waterloo, clarified that what are commonly called "AI data centres" are not a distinct category. "There is no such thing as an AI data centre," he said, explaining that data centres are facilities housing computers running various applications — some of which can power AI systems. The facilities are characterized by specialized hardware that enables large mathematical models to run efficiently.
Experts say data centres require significant electricity and cooling, raising concerns about energy demand, water use, and heat generation, though impacts vary depending on the technology and cooling systems deployed. As HighOnCity reported in August, Ontario's data centre boom is outpacing the planning system built for a different era.
At a glance
Where are the two proposed data centres Toronto is reviewing?
One proposed STACK Infrastructure data centre expansion is at 3650 Danforth Avenue in Scarborough, and another facility is planned for 48 Lowes Place in Etobicoke.
What did Mississauga decide about new data centres?
Mississauga City Council approved a plan to pause new data centre development for up to one year while the city assesses impacts and updates its policies.
What are the main concerns about these facilities?
Residents and officials have raised questions about electricity demand, water consumption, and environmental impacts, including concerns about strain on local electricity systems and heat generation.
