After a 90-minute debate on Monday evening, city officials in Sault Ste. Marie rejected a proposal to halt new data center projects in the northern Ontario city. The discussion revolved around the contentious artificial intelligence facilities, which stemmed from a local petition opposing a cybersecurity monitoring and training center, including a data center, approved by the city council in December 2025.
Led by Protexxa and Missanabie Cree First Nation, the project aims to utilize AI technology to address cyber issues for various organizations and governments. Councilor Angela Caputo of Ward 3 suggested an interim control bylaw to pause any new data center proposals until additional policies and protocols were established for the city.
Mayor Matthew Shoemaker and some councilors expressed reservations about the specifics of the moratorium proposed by Caputo, leading to her withdrawal of the motion. Instead, it is anticipated that a new motion will be presented during the next meeting on Aug. 31, directing city staff to create a specific municipal framework for data centers in Sault Ste. Marie, with opportunities for public input.
The outcome of the upcoming vote is unlikely to affect the already approved Protexxa data center project in the city-owned industrial park on Yates Avenue, pending the completion of the property sale process. During the debate, Mayor Shoemaker emphasized the importance of distinguishing between different types of data centers, highlighting the potential environmental impact of large-scale facilities compared to the modest energy requirements of the Protexxa project.
City staff clarified that the proposed data center’s energy consumption aligns with the city’s current capacity and emphasized the existing processes in place to regulate such developments. The city’s Planning Director, Peter Tonazzo, and CAO Tom Vair echoed the sentiment that all proposed data centers, regardless of size, must undergo council scrutiny for rezoning.
In conclusion, Mayor Shoemaker stressed that while there is room for process improvement, existing procedures are designed to assess and approve data center projects appropriately. He underscored the thorough review process that took place before approving the Protexxa project and cautioned against undermining previous decision-making efforts.