Should Ottawa place a moratorium on new AI data centres?

Advertisement 1 This advertisement has not loaded yet, but your article continues below. Breadcrumb Trail Links HomeNewsLocal NewsTechnology Should Ottawa place a moratorium on new AI data centres? Local politicians are divided over how to handle the growing industry. Author of the article: By Michael McBean Published Aug 21, 2026 Last updated 1 hour ago 5 minute read Join the conversation Craig McLellan, founder and CEO of ThinkOn, says Ottawa will need more computing infrastructure as AI and other digital services grow, but acknowledges there are limits to how much electricity is available. PHOTO BY SPENCER COLBY /Postmedia Article content Local politicians are divided over whether Ottawa should put the brakes on new large-scale AI data centres amid growing pressure on the city’s electricity grid. Article content Data centres are buildings filled with computer servers that store and process huge amounts of information. They support everyday services like cloud storage and online banking. AI also relies on data centres, but it can require a lot of electricity both to run the computers and to keep them cool. Article content Article content Article content Cities across Ontario are wrestling with how to handle the growing industry. Oakville has imposed a one-year moratorium on new data centres, while Mississauga is moving toward a similar pause. Toronto is studying possible new rules, while Hamilton rejected a moratorium. Article content The Evening Citizen The Ottawa Citizen’s best journalism, delivered directly to your inbox by 7 p.m. on weekdays. Sign Up By signing up you consent to receive the above newsletter from Postmedia Network Inc. Interested in more newsletters? Browse here. Article content The province has also recently released a framework that would require data centres to pay dedicated electricity rates and to use closed-loop cooling systems. It would also favour projects that brought economic and community benefits. Article content Premier Doug Ford has already urged Ontario to embrace data centres, arguing they are important to keeping Canadians’ data in Canada. Article content Ottawa already has at least a half-dozen data centres operating across the city. Article content One of them is operated by Canadian cloud and data-storage company ThinkOn in Nepean. The facility is not dedicated solely to AI. The company says it handles a range of computing needs for government and commercial customers, including workloads that…