After a 90-minute debate on Monday evening, city council members in Sault Ste. Marie rejected a proposal to stop new data center projects in the northern Ontario city. The discussion revolved around controversial artificial intelligence facilities following a local petition opposing a cybersecurity monitoring and training center, including a data center approved by the city council in December 2025.
The initiative, led by cybersecurity firm Protexxa and the Missanabie Cree First Nation, aims to utilize AI to address cyber issues for various organizations and governments. During the council meeting, Ward 3 Coun. Angela Caputo suggested an interim control bylaw, known as a moratorium, to pause any new data center proposals until additional policies and protocols were established.
However, Mayor Matthew Shoemaker and some council members expressed reservations about certain aspects of the proposed moratorium, leading Caputo to withdraw the motion. Instead, it is anticipated that a new motion will be introduced at the upcoming meeting on August 31 to task city staff with crafting a specific municipal framework for data centers in the city, including opportunities for public input.
The decision from the upcoming vote is unlikely to impact the already approved Protexxa data center project in the city-owned industrial park on Yates Avenue, pending the finalization of the property sale. Shoemaker highlighted that there are existing processes in place to regulate data centers and cautioned against treating all facilities the same.
Protexxa stated that their project would only require five megawatts of power, significantly less than the “hyperscale” data centers seen across North America. The city’s main electricity utility, PUC, confirmed sufficient power capacity to accommodate the five-megawatt facility, emphasizing that the city is equipped to handle such developments.
City officials, including Peter Tonazzo, the director of planning, and CAO Tom Vair, emphasized that all proposed data centers, irrespective of size, would undergo council review for rezoning to ensure suitability. Shoemaker defended the decision-making process for the Protexxa project, stating that the site underwent thorough assessment and scrutiny before approval was granted.
In summary, while concerns were raised regarding new data center proposals in Sault Ste. Marie, the city council is working towards establishing clear guidelines and procedures to govern such developments, ensuring responsible decision-making and community involvement.