The Cumberland Municipality has approved a temporary ban on data centers specializing in artificial intelligence. During a council meeting, a proposal for a six-month moratorium on new data center development permits received unanimous initial approval. Concerns were raised by Coun. Jennifer Houghtaling about the potential impact of data centers on water and electricity usage in the community and the environment.
Mayor Rod Gilroy expressed the municipality’s proactive approach to address these concerns and make well-informed decisions before drafting regulations. The decision follows similar actions taken by Oakville, Ontario, establishing a one-year moratorium on new data centers.
The issue arose in June after concerns were raised by residents about a land purchase in Malagash by a Mississauga-based company, 3Sha Infotech Inc. Cumberland’s Chief Administrative Officer, Greg Herrett, emphasized that the moratorium was a preemptive measure based on community apprehensions, as there have been no formal inquiries or applications received regarding data center development.
Local resident Kate Dunn supported the moratorium, citing concerns about noise disturbance and the disruptive impact of data centers on rural life. Dunn emphasized the need for careful consideration of the value and implications of AI data centers before proceeding further. She also expressed concerns about potential government intervention to override municipal regulations.
As the proliferation of AI data centers continues across North America, opposition to their expansion is growing. A recent Angus Reid poll revealed significant public opposition to large AI data centers being built in close proximity to residential areas. The poll also indicated a strong desire for government regulation of AI, even if it slows down development.
The municipality plans to schedule a public hearing in September after the initial reading of the bylaw to further deliberate on the issue before proceeding with any potential data center applications.

