AI data centres: What are they and why so controversial in Canada?
· Toronto Sun
The early stages of a potential plan to develop part of Hamilton’s industrial waterfront into an artificial intelligence data centre suffered a short circuit last week.
Toronto-based Slate Asset Management, which bought approximately 800 acres of industrial land and buildings from Stelco four years ago, said it plans to “redevelop the site into a world-class industrial park with a focus on job creation, economic growth, and environmental sustainability.”
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The area, known as Steelport , could create up to 23,000 new jobs across the Greater Toronto and Hamilton Area and inject up to $3.8 billion into Ontario’s economy, the company says.
However, local residents opposed to the early plans that would see part of the land split up protested outside Hamilton City Hall on Thursday morning ahead of a committee of adjustment meeting considering the owner’s application.
#HamOnt residents show up in huge numbers to oppose AI data centres in the city. pic.twitter.com/Lh3RLaVb1M
— Kojo Easy Damptey (@EasyThePianoMan) June 4, 2026
Tribunal member Robert Reid acknowledged the application for the land severance met all of the regulations for that property.
However, after hearing many residents argue against the application in protest of AI infrastructure, along with thousands of emails and messages submitted to the committee, the tribunal voted 3-0 to deny the application .
Residents who attended the meeting erupted into loud cheers.
Despite the denial, the developer can either appeal the decision to the Ontario Land Tribunal or go ahead with its plans without splitting up the land.
The protest comes at a time when many Canadians appear to be skeptical about AI, which could replace jobs while also consuming higher amounts of water and power needed to run energy-intensive AI processors.
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What is an AI data centre?
An AI data centre is a large specialized facility that houses the technological infrastructure needed to train, deploy and deliver AI applications and services .
According to CaTECH Systems, a telecommunications contractor in Markham, these supersized data centres require large amounts of energy to run the hardware and software as well as massive amounts of water to cool the machines.
“As AI continues to disrupt industries, the demand for specialized AI data centres has grown,” the company says . “These next-generation facilities are custom-built to support the heavy and complex needs of AI workloads.”
Meanwhile, traditional data centres are facilities that are designed for computer-based workloads that are “predictable, incremental, and less power-intensive.”
According to researchers at York University , there are five AI data centres currently operating in Canada — two in British Columbia and one each in Ontario, Quebec, and New Brunswick.
Why are they so controversial?
Critics of AI data centres cite energy and water consumption as well as land use and noise pollution as major issues.
The Starfish Environmental Society, based in Vancouver, says large amounts of electricity is needed to run these facilities, with many relying on fossil fuels to source their energy needs.
“Furthermore, many data centres build backup natural gas or diesel generators to ensure an uninterrupted supply of electricity,” they write , noting the increase in greenhouse gases.
In addition, AI data centres draw on large amounts of fresh water for their cooling systems.
There are also complaints about noise pollution from the constant drone of the facilities and the large amount of land needed to house the technology.
How do Canadians view AI?
According to a recent Angus Reid survey , more than two-thirds (68%) of Canadians want governments to heavily regulate AI and nearly three-in-four (74%) residents doubt any government can keep pace with the growing technology.
In addition, 68% say they would oppose a large AI data centre near their home while 79% support the government taxing companies that replace workers with AI.
“Canadians see some upside to data centres but grow more skeptical as the impacts move closer to daily life,” the pollster says.
The only positive result from the survey found 38% if respondents think that Canada can compete globally in AI and tech while 20% didn’t believe so. A plurality (42%) were unsure.