Ontario city is trying to ban AI data centres

The race to build AI data centres is accelerating, but one Ontario city wants to pump the brakes amid an influx of the resource-hogging facilities.

Hamilton is considering a temporary ban on new AI data centre developments as concerns over environmental and community impact continue to grow.

As first reported by The Canadian Press, a Hamilton planning committee voted to move forward with a proposal that would temporarily stop new AI data centre developments.

The key word here is "temporary" as this isn't a permanent ban (although some environmental advocates would likely welcome that). The goal here is to pause to allow city staff to study the impacts of these AI centres and develop rules to guide future proposals.

Temporary or not, many Hamilton residents support the ban. Concerns raised at a recent committee meeting included the enormous amounts of electricity and water data centres consume, along with heat, potential noise, and pressure on local infrastructure.

Other residents wondered whether cities like Hamilton should be the ones paying the price for an AI boom that's still surrounded by controversy, from job losses to the use of copyrighted work to train large language models. Valid concerns as governments and tech companies race to build more infrastructure for a world where everyone and their grandma is using ChatGPT for everything from drafting resumes to designing community posters. 

In Hamilton, the discussion is largely centred around Steelport, a proposed redevelopment of Hamilton's industrial harbourfront into what developers describe as a "digital and industrial hub."

The project, backed by private investment firm Slate Asset Management, could eventually include a large data centre campus occupying part of the site. Earlier this month, a city committee rejected a proposal related to the project after significant public outcry.

On the other side, developers argue the project represents a major economic opportunity for Hamilton. They say the site's existing infrastructure makes it well-suited for data centre development and could attract universities, banks and businesses that rely on large-scale computing power.

This discussion comes as governments and tech companies across the country are investing heavily in AI infrastructure, including sites here in Toronto. In May, an expansion of an existing AI research centre was announced, supported by a $300 million investment from the French biopharmaceutical company Sanofi.  

Hamilton isn't alone in trying to ban AI centres. Earlier this month, it was reported that Manitoba Premier Wab Kinew rejected a proposed mega data centre near Winnipeg over concerns about the enormous amount of electricity it would require.

According to The Canadian Press, Hamilton city council will make a final decision on the proposed pause "at a later date."