Following a 90-minute debate on Monday evening, city councillors in Sault Ste. Marie rejected a proposal to pause new data center projects in the northern Ontario city. The discussion centered around contentious artificial intelligence facilities weeks after a local petition opposed a cybersecurity monitoring and training center, including a data center, approved by the city council in December 2025 for the west end.
Led by cybersecurity firm Protexxa and Missanabie Cree First Nation, the project aims to utilize AI technology to address cyber issues for various organizations and governments. During the council meeting, Ward 3 Coun. Angela Caputo suggested an interim control bylaw, also known as a moratorium, to halt any new data center proposals in the city until additional policies and protocols were established.
Mayor Matthew Shoemaker and several councillors expressed apprehension about the specifics of Caputo’s proposal, leading her to retract the motion. It is now anticipated that a new motion will be presented at the upcoming meeting on August 31, tasking city staff with creating a tailored framework for data centers in Sault Ste. Marie, including avenues for public input.
The outcome of this upcoming vote is unlikely to affect the Protexxa data center project already greenlit for Yates Avenue in the city-owned industrial park, pending finalization of the property sale. Shoemaker emphasized the need to differentiate between various types of data centers, cautioning against generalizations. He highlighted the difference between hyperscale facilities, which consume large amounts of resources, and the modest energy requirements of the Protexxa project.
The mayor pointed out that the city’s existing power infrastructure could accommodate the five-megawatt consumption of the planned data center, contrasting it with the excessive demands of hyperscale facilities found across North America. City officials noted that the city already hosts similar-sized server rooms for major office and institutional uses, indicating familiarity with managing such operations.
Shoemaker emphasized that the city has established processes to evaluate and approve data center proposals effectively, underscoring the thorough review conducted prior to approving the Protexxa project. While acknowledging room for process enhancements, he defended the decision-making process and stressed the importance of upholding the integrity of past decisions.