After a 90-minute debate on Monday evening, Sault Ste. Marie city councillors rejected a proposal to stop new data center developments in the northern Ontario city. The discussion centered on controversial artificial intelligence facilities following a local petition opposing a cybersecurity monitoring and training center, including a data center, approved in December 2025 for the west end by city council.
The project, a collaboration between cybersecurity company Protexxa and Missanabie Cree First Nation, aims to utilize AI to address cybersecurity challenges for organizations and governments. Ward 3 Coun. Angela Caputo suggested an interim control bylaw to pause any new data center proposals until additional policies and protocols were established, emphasizing community-informed decision-making.
Mayor Matthew Shoemaker and several councillors expressed reservations about the moratorium details in Caputo’s proposal, leading to its withdrawal. Instead, a new motion is expected to be introduced at the next meeting on Aug. 31, directing city staff to develop a specific municipal framework for data centers with public consultation opportunities. The approved Protexxa data center project on Yates Avenue is anticipated to proceed unaffected, pending finalization of the property sale.
During the debate, Mayor Shoemaker highlighted the distinction between different types of data centers and cautioned against generalizing them. While Protexxa’s plan requires five megawatts of power, significantly less than “hyperscale” facilities consuming over 100 megawatts common in North America, the city’s infrastructure is well-equipped to support the proposed facility.
City officials emphasized that existing processes, including council approval for rezoning, ensure appropriate consideration for all proposed data centers in Sault Ste. Marie. They stressed the importance of enhancing the existing decision-making process rather than imposing a moratorium on future data center proposals, citing thorough review, consultation with relevant agencies, and environmental considerations for the approved project.