Mississauga Council Approves One-Year Moratorium on Large Data Centres
Mississauga City Council has unanimously voted to pause new data centre projects exceeding 10 megawatts in energy demand, citing concerns over utility impacts and noise. This decision leaves a proposed 40-megawatt project by Prologis in limbo and makes Mississauga the second Ontario municipality to enact such a freeze.
Mississauga City Council voted unanimously on Wednesday to implement a one-year moratorium on new data centre projects that require more than 10 megawatts of energy. The decision reflects growing municipal concern across Ontario regarding the infrastructure demands of large-scale digital facilities.
Councillor Martin Reid sponsored the motion, arguing that the city required guardrails to address resident concerns about energy consumption, water usage, and noise pollution. The threshold of 10 megawatts is roughly equivalent to the electricity needs of 10,000 homes.
The vote immediately places a proposed 40-megawatt data centre project by logistics giant Prologis in northwest Mississauga into uncertainty. Although the site had received initial approval from the planning committee, its future is now paused pending further review. Prologis expressed disappointment with the council’s decision but stated it remains committed to the community, highlighting the site’s strategic proximity to an electrical substation and Highway 401.
Mississauga joins Oakville as the second Ontario municipality to pass a formal freeze on high-energy data centres. Oakville enacted the province’s first such moratorium last month. Other cities have taken different approaches: Hamilton was the first Canadian city to vote on a similar interim control bylaw, but council members rejected it in July. Similarly, Burlington voted down a temporary moratorium bid in July, while Milton rejected an interim control bylaw on Monday; both municipalities directed staff to conduct further studies instead.
In Sault Ste. Marie, council has directed staff to draft a moratorium for data centres with energy demands exceeding 50 megawatts, with a vote expected on Sept. 21. Conversely, Greater Napanee passed a bylaw in February permitting data centres as a use in industrial lands.
The local decisions occur amidst a broader provincial debate. The Ontario government recently released a draft "playbook" for data centre projects, which requires developers to cover their own electricity costs and demonstrate community benefits. However, some municipal leaders argue that the framework lacks enforceable standards, describing the current regulatory environment as a "Wild West." Under the proposed provincial rules, data centres may face higher electricity rates to ensure they do not burden existing ratepayers.