After a 90-minute debate on Monday night, city council members in Sault Ste. Marie rejected a proposal to stop new data center projects in the northern Ontario city. The discussion centered 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 for the west end.
Led by Protexxa and Missanabie Cree First Nation, the project aims to utilize AI for cyber issue identification and resolution for organizations and governments. Councilor Angela Caputo of Ward 3 suggested an interim control bylaw to pause new data center proposals in the city until additional policies and protocols were in place. However, Mayor Matthew Shoemaker and some councilors expressed reservations about certain aspects of the proposed moratorium, leading Caputo to withdraw the motion.
It is anticipated that a new motion will be presented at the upcoming meeting on August 31, directing city staff to develop a specific municipal framework for data centers in Sault Ste. Marie, encompassing public consultation opportunities. This decision is not expected to impact the approved Protexxa data center project on Yates Avenue in the city-owned industrial park, pending the finalization of the property sale.
During the debate, Mayor Shoemaker emphasized the distinction between different types of data centers, cautioning against generalizing them. City staff highlighted concerns about “hyperscale” facilities in North America that consume significant power and resources, contrasting with Protexxa’s projected modest power usage. The city’s main electricity provider, PUC, confirmed the existing capacity to accommodate the power demand for Protexxa’s facility. Director of Planning Peter Tonazzo and CAO Tom Vair reassured that all proposed data centers, regardless of size, would undergo council scrutiny for rezoning suitability.
Shoemaker argued against a moratorium on future data center proposals, citing existing processes to evaluate and reject impractical applications. He defended the thorough review and decision-making process that approved the Protexxa site, emphasizing the consideration of infrastructure capacity and environmental factors. The mayor suggested room for process enhancements without undermining the previous decisions made in December.