Mississauga Says “No” to AI Data Centers, For Now.

September 16, 2026, Mississauga City Hall – The surge in artificial intelligence has put Greater Toronto Area (GTA) municipalities at the center of a major debate over how to regulate a new wave of large, energy-hungry data centers.

Before diving into Mississauga’s decision to impose a moratorium on these projects, it’s important to understand the context.

What are data centers, and why is there opposition to them

In simple terms, a data center is a facility filled with computers and servers that store and process data for everything from email and chatbots to the newsletter you are reading now.

Data centers have become the backbone of the modern economy—supporting cloud storage, artificial intelligence, banking systems, healthcare, and government services. Although they are not new (Ontario already has dozens), what’s different this time is AI’s role. The rise of artificial intelligence has drastically increased the scale of these centers, making them much larger than older facilities, which use less power and water for cooling. While AI itself brings various concerns, the primary local issues relate to the physical space data centers occupy and their environmental impact.

Now back to our story.

On September 16, the City of Mississauga voted unanimously to place a one-year moratorium on new data center projects.

“We’ve heard your voice loud and clear,” said Martin Reid, the councilor who sponsored the moratorium.

Mississauga’s mayor, Carolyn Parrish, elaborated: “This interim control by-law places a moratorium on data centers larger than 10 megawatts. I believe this is the right approach to address this issue.”

The pause aims to give the city time to develop regulations for new data centers, as local lawmakers respond to residents’ concerns about energy, water, and noise impacts.

While not every city or region in the GTA will face all the same issues, the most pressing concerns for municipalities include water consumption, heat generation, power systems, air emissions, infrastructure upgrades, servicing capacity, environmental impacts, public health effects, economic implications, and climate considerations.

Councilor Dipika Damerla (Ward 7) expressed gratitude to the public who attended the council meeting on Wednesday, stating, “This is your win today. You sounded the alarm, you came forward, and you advocated. If there’s a moratorium on data centers, it’s because of you.”

Mississauga’s pause affects data centers with energy demands exceeding 10 megawatts, enough electricity to power approximately 10,000 homes.

During this temporary pause, the city will conduct a comprehensive policy review of major digital infrastructure facilities, the City of Mississauga said.

“The review will assess whether policies and regulations, such as the Official Plan and Zoning By-law, need to be updated,” the statement read.

It’s government versus the people:

Clearly, allowing these energy-intensive facilities within city limits is becoming a tug-of-war between the federal and provincial governments on one side and residents on the other.

For the government, establishing data centers is essential for Canada to achieve “data sovereignty” instead of relying on facilities abroad. In contrast, residents insist that any such initiative must be preceded by security protocols and standards, which many data-center advocates seem unconcerned about.

Even a labor union joins the debate:

“Today, the people of Mississauga sent a message that they are closed for business and that they do not care about the jobs that their lack of foresight affects,” stated a strongly worded, some might say scathing, statement from Victoria Mancinelli, spokesperson for the Laborers’ International Union of North America (LiUNA), which represents 120,000 members across Ontario.

“At a time when Ontario is competing for investment, jobs, and the infrastructure that will support our digital economy, shutting the door on opportunity sends the wrong message,” she said in an email.