After a 90-minute debate on Monday evening, city councillors in Sault Ste. Marie rejected a proposal to stop new data center projects in the northern Ontario city. The discussion centered around controversial artificial intelligence facilities following a local petition opposing a cybersecurity monitoring and training center, including a data center, approved in December 2025 for the city’s west end.

Ward 3 Coun. Angela Caputo put forth a motion for an interim control bylaw, aiming to pause any new data center proposals in Sault Ste. Marie until additional policies and protocols were established. However, Mayor Matthew Shoemaker and several councillors expressed hesitancy towards some aspects of the proposed moratorium, leading Caputo to withdraw the motion.

Instead, it is anticipated that a new motion will be presented at the upcoming meeting on August 31, directing city staff to create a specific municipal framework for data centers in the city, with provisions for public consultation. This forthcoming decision is not foreseen to impact the already approved Protexxa data center project on Yates Avenue in the city-owned industrial park, pending the property sale completion.

During the debate, Mayor Shoemaker cautioned against treating all data centers equally, highlighting the distinction between “hyperscale” facilities and smaller operations like Protexxa’s. City staff emphasized the substantial resource requirements of hyperscale centers compared to the modest five-megawatt demand projected by Protexxa, which is within the city’s power capacity.

Peter Tonazzo, the city’s planning director, mentioned existing server room setups in the Sault similar in size to Protexxa’s proposal, emphasizing the need for council approval for any data center rezoning. Shoemaker defended the decision-making process for the Protexxa project, pointing out the thorough review of the site, consultation with relevant agencies, and consideration of infrastructure capacity and environmental factors.

In conclusion, the discussions on data center regulations in Sault Ste. Marie continue to evolve, with a focus on balancing economic development with environmental and community concerns.