Hamilton councillors OK step toward moratorium on AI data centres

Hamilton councillors OK step toward moratorium on AI data centres

Ward 3 councillor Nrinder Nann moved for a moratorium pending new, local rules

Hamilton has taken the first steps toward a moratorium on the development of artificial intelligence (AI) data centres.

On Tuesday, Hamilton's planning committee meeting unanimously supported a motion by Ward 3 councillor Nrinder Nann to pause the development of such facilities pending the possible development of new local rules and regulations.

The vote happened early Tuesday evening.

The motion — which will need to be approved by the full city council — directs staff to prepare an interim bylaw restricting data centre development pending studies on current regulations and recommendations for improvements. It notes a review will consider factors including energy and water use, noise and heat impacts.

"Across the world, one of the largest industrial mobilizations of a generation is underway," Nann said Tuesday evening. "Every order of government must take time to perform its due diligence and good governance."

She said a moratorium of 12 months at most would give Hamilton time to do what it needs to manage data-centre development while still building necessary digital infrastructure.

Hamilton city Coun. Nann calls for moratorium on development of AI data centres

Thirty-nine people registered to speak to Nann's motion Tuesday and 391 submitted written comments.

Hamilton resident Alli Balogun told the committee people in this city didn't choose to have an AI boom and deserve a say in how it impacts their lives.

"It should give every one of us a pause when we hear the word ‘progress’ used to justify decisions that bypass the people most affected," he said, speaking in favour of the motion.

Worries over environmental harm, youth employment

Data centres have come under scrutiny at city hall in recent weeks, with hundreds showing up in person and 1,688 writing in to protest a data centre proposal on June 4.

Then and Tuesday, residents shared a variety of concerns, including environmental harm, noise and negative societal impacts of AI.

Logan Moreau-Gagne, a 21-year-old graphic designer, shared worries about how AI will affect youth employment, particularly in creative industries.

Ward 3 resident Christine Cayuga said that while data centres could bring opportunities, they also raise important questions a local framework could help address. She said such a framework should also ensure her Indigenous community is included in decisions.

National group still going ahead with Hamilton data centre proposal

The growth of AI has increased demand for data centres. At the same time, protests against such projects have been growing across the country — including in Hamilton — driven by concerns about how much land, electricity and water these facilities consume.

There are at least two proposed data centre projects in Hamilton. One is a pitch to the federal government by the Digital Research Alliance of Canada (DRAC). The second proposal is by Ontario company s2e, which is pitching a data centre to McMaster University for the former Hamilton Spectator building owned by McMaster Innovation Park. Both proponents say the data centres would support academic research.

"As the city evaluates its position on these types of investments, DRAC would be pleased to provide technical advisory and facilitate dialogue between academic and industry experts with city planning staff as it pertains to public compute infrastructure," Stephen Wu, DRAC's AI Sovereign Compute Infrastructure Project Lead, said in a written submission on Nann's motion.

Staff share details of current processes

In response to questions from Coun. Craig Cassar (Ward 12), staff told the committee that under existing rules, developers building on land approved for data centres must submit site plans to the city. Staff check that developments meet provincial noise regulations and see comments from utilities providers regarding electricity use. They don't look at heat generation in the site plan process. Water use is mostly managed by the province.

Nann previously said there is a need for local data centre regulation in part because the federal government's national AI strategy does not include proposed regulations for the data centre industry.

Earlier this month, Innovation, Science and Economic Development Canada told CBC Hamilton that "as demand for AI compute grows, Canada’s approach is to align new data centre development with clean energy expansion, strong environmental standards, and benefits for local communities."

Building cleaner AI data centres better than not building at all, CEO behind Hamilton proposal says

At Tuesday's meeting, Lliam Buckley, who works in the tech industry, spoke in favour of building better systems rather than swearing off AI-related development, which some residents suggested.

"A lack of publicly owned compute makes our digital systems less resilient and more prone to cyberattacks," Buckley said.

Buckley said a moratorium of longer than a few months could cause Hamilton to miss out on attracting organizations who will build in the public interest.

"As an environmentalist, I’m glad that this motion has such deep consideration for the environmental effects of data centres," Buckley said. "As a technologist, I'm disappointed that it doesn’t speak to the other intersecting areas like cybersecurity, data privacy and digital resilience."

Nann said a local framework will ensure businesses know what it takes to operate data centres in Hamilton, and that residents understand what is going on.

Coun. Ted McMeekin (Ward 15) said it was "great" to listen to everyone who came to speak to the committee. He said he recently watched The AI Doc: Or How I Became an Apocaloptimist and it moved him to tears, leaving him somewhere between the optimism of Star Trek and pessimism of Terminator 3: Rise of the Machines.

"I don't think we're going to stop the train but god knows if it goes off the tracks we're in deep trouble," he said.

Matt Francis (Ward 5) said it's rare for so many people to come speak to an issue and hopes that over levels of government take seriously what people in Hamilton have said.

Justin Chandler is a CBC News reporter in Hamilton. He covers stories of all kinds from places including picket lines, court rooms, council meetings and research labs. Justin has a special interest in how public policy affects people, and loves a quirky human-interest story. Before CBC Hamilton, he worked for TVO and on a variety of CBC teams and programs. He co-hosted Radio Free Krypton on Met Radio.