Following a 90-minute debate on Monday evening, city council members in Sault Ste. Marie rejected a proposal to stop new data center projects in the northern Ontario city. The discussion centered around contentious artificial intelligence facilities, sparked by a local petition opposing a cybersecurity monitoring and training center that included a data center, approved by the city council in December 2025.
Led by cybersecurity firm Protexxa and Missanabie Cree First Nation, the project aims to use AI for identifying and resolving cyber issues for various organizations and governments. During the council meeting, Ward 3 Councilor Angela Caputo suggested an interim control bylaw to pause any new data center proposals until additional policies and protocols were established, emphasizing responsible community-informed decision-making.
Despite initial hesitancy from Mayor Matthew Shoemaker and some councilors over specific details in Caputo’s proposal, she eventually withdrew the motion. Instead, councilors are expected to introduce a new motion at the upcoming meeting on August 31, tasking city staff with developing a tailored municipal framework for data centers in the city, including avenues for public input.
The outcome of the upcoming vote is unlikely to affect the approved Protexxa data center project on Yates Avenue in the city-owned industrial park, pending the completion of the property sale. Mayor Shoemaker stressed the importance of distinguishing between various types of data centers, cautioning against treating them all alike.
Protexxa stated that its project would require a modest five megawatts of power, similar to the consumption of Sault Area Hospital and a small fraction of the city’s total power capacity. The city’s main electricity utility, PUC, affirmed the existing power capacity to accommodate this demand but noted its inability to support a “hyperscale” facility requiring over 100 megawatts.
City officials highlighted existing office and institutional uses in the Sault that benefit from server rooms comparable in size to Protexxa’s proposal. City CAO Tom Vair emphasized the necessity for any proposed data centers, regardless of size, to undergo council scrutiny for rezoning to ensure appropriateness.
Mayor Shoemaker reiterated that considering established processes for evaluating applications, imposing a moratorium on future data center proposals would be redundant. He underscored the thorough review and consultation that took place before approving the Protexxa site, emphasizing the importance of respecting the decision-making process while also exploring avenues for process enhancement.
