Hamilton city council has voted to have city staff draft a bylaw prohibiting the construction of new AI data centres within city limits, sparking debate over the merits of such a moratorium. Councillor Nrinder Nann, who authored the motion, cited concerns about energy use, water consumption, and noise. However, critics argue these concerns do not withstand scrutiny and that banning data centres could cost the city jobs and tax revenue.
Ontario's Zero-Emission Electricity Advantage
According to the federal government, 91% of Ontario's electricity is generated from zero-emission sources. This makes the province an ideal location for AI data centres, which are energy-intensive. If data centres are not built in Ontario, they will be built elsewhere, likely in regions with higher emissions. Building them in Ontario ensures that their energy use is overwhelmingly clean.
Water and Noise Concerns Overblown
Water usage is another common concern, but comparisons show it is relatively modest. A typical 18-hole golf course uses about 300,000 gallons of water per day during summer, far more than a data centre. Noise levels from data centres are also minimal; perimeter fencing reduces ambient sound to 45–65 decibels, similar to a refrigerator hum. In contrast, a city bus accelerating produces 80 decibels, and a passing motorcycle reaches 95 decibels.
Economic Benefits and Job Creation
The construction of AI data centres creates good-paying jobs for skilled tradespeople such as electricians, HVAC mechanics, pipefitters, ironworkers, and project managers, all earning above the provincial average. Two proposed projects in Hamilton alone would generate significant employment and property tax revenue. Permanent technical and operational roles also provide long-term economic benefits.
Canada's Role in the AI Revolution
Canada has been a global leader in AI research, with breakthroughs from Geoffrey Hinton at the University of Toronto and Yoshua Bengio at the Université de Montréal. The United States and European Union are rapidly expanding data centre capacity. Canada must keep pace to avoid falling behind. Banning data centres would risk losing the economic and technological advantages that come with AI innovation.
As Jay Goldberg, North American affairs manager at the Consumer Choice Center, wrote: 'Politicians would be wise to educate themselves about the positive benefits of the digital revolution before making decisions that hold back a city or, for that matter, a province.'
