Hamilton city council voted 9-6 on June 24, 2026, to maintain a pause on new data centre approvals, rejecting a proposed exemption for a specific facility. The decision keeps the moratorium in place while city staff conduct further study on the environmental and infrastructure impacts of data centres.
Council Debate and Vote
The pause, first implemented in early 2026, was challenged by a motion to exempt a proposed data centre development in the Stoney Creek area. Councillors debated the economic benefits of data centres against concerns over energy consumption, water usage, and strain on the electrical grid. Mayor Andrea Horwath voted in favour of the pause, stating that the city needs more time to develop regulations. “We cannot rush into approving projects that could have long-term consequences for our energy and water resources,” she said.
Councillor Tom Jackson, who proposed the exemption, argued that the project would bring jobs and investment. “This is a $500-million investment that would create hundreds of construction jobs and dozens of permanent positions. We risk sending a message that Hamilton is not open for business,” he said.
Background of the Moratorium
The city implemented the pause in February 2026 after a surge in data centre proposals, driven by demand from AI and cloud computing companies. Staff raised concerns about the cumulative impact on Hamilton’s electricity supply, which is already under pressure from population growth and industrial expansion. A report from Hamilton Hydro indicated that data centres could consume up to 200 megawatts of power by 2030 if all proposed projects proceed.
The moratorium applies to new data centre applications exceeding 10,000 square feet. It does not affect existing facilities or smaller projects.
Next Steps
The council vote directs city staff to complete a comprehensive study on data centre regulations by September 2026. The study will examine best practices from other jurisdictions, such as Virginia and Ireland, where data centre growth has led to grid strain and environmental concerns. Council will then vote on permanent zoning bylaws and energy efficiency requirements.
Environmental groups praised the decision. “This pause gives Hamilton a chance to get it right,” said Sarah Miller of the Hamilton Environmental Alliance. “Data centres can be built sustainably, but only with proper oversight.”
The data centre industry expressed disappointment. “We urge the city to move quickly on its study so that Hamilton can benefit from the digital economy,” said a spokesperson for the Canadian Data Centre Association.
