A company has decided to cancel its proposal for constructing a two-megawatt artificial intelligence (AI) data center in Armour Township, Ontario, following public objections. Almaguin Data, in a communication to the town council on June 1, explained that without land ownership in the industrial park where the project was planned, it would have had limited options in the face of community resistance concerning environmental issues.
The company highlighted that under Ontario’s planning system, developers have mechanisms to address unwarranted refusals or delays in approvals, particularly through the Ontario Land Tribunal. However, lacking land ownership would have left them vulnerable, risking the financial investment in studies if permissions were not granted.
During a previous presentation to the town council, Almaguin Data’s founder, Matthew Fuller, outlined that the initial phase of the project would have created four job opportunities, with potential growth to employ between 10 to 12 individuals as the facility expanded. The company intended to invest between $15 and $20 million over a span of up to five years to scale up the data center to a 10-megawatt capacity, covering an area of roughly three hectares.
Primary concerns raised against the proposed data center have revolved around environmental implications. Jordan Gorlick, a resident of South River, Ontario, voiced her opposition due to worries about water usage. Despite the company asserting that the data center would consume less than 10,000 liters of water daily, emphasizing it to be significantly lower than other local industries like quarries, Gorlick expressed apprehensions about the broader environmental impact of proliferating data centers in Canada over time.
As per York University research, there are nearly 96 “hyperscale” data centers in the development phase across Canada, each with a capacity of 100 megawatts or higher. However, this expansion has triggered resistance from individuals concerned about the substantial water, electricity, and land consumption associated with these facilities. A recent protest in Hamilton against a data center approval decision underscores the growing opposition to such projects, with an online petition against the Armour Township initiative amassing over 1,800 signatures.