Canadian City Says ‘No’ to Proposed AI Data Center

But the proponents can now appeal the land use decision or modify its plans

Photo by Jeff Hayward

If there was any doubt that citizen protests can influence development decisions, it was erased after a Canadian city raised its collective voice against a proposed AI data center–and was heard loud and clear.

Hundreds of residents from all walks of life attended a morning protest at City Hall in Hamilton, Ontario, prior to a vote on whether a developer could use a section of its industrial property known for steel production for an AI data center.

Along with the chants of “F*ck AI” at City Hall, the city’s committee of adjustment received more letters (1,600+) about the land severance proposal than any other request in history. Many of the protestors carrying homemade signs stayed to speak to the committee about their concerns, including potential noise and heat from the building, as well as seeking more specifics about electricity and water usage for the data campus that would use evaporative cooling.

Others expressed anger about AI displacing human workers, and there were no specifics on how many jobs would be created by the proposed AI data building on Hamilton’s waterfront. Previous builds suggest that these behemoth complexes create minimal permanent positions once skilled workers complete construction, with some projects requiring their own natural gas power plants.

Photo by Jeff Hayward

While the Hamilton committee meeting started in the morning, it wasn’t until late afternoon that the request from the developer was denied due to the public pressure, adding to the list of deferred or cancelled AI centers across North America.

One of the high-profile people leading the charge against the AI builds is Erin Brockovich–yes, that Erin Brockovich–who rightly says these projects are being snuck in under the noses of locals. The same is true in Hamilton, where many residents did not know about the plan until it appeared on the committee’s agenda. The server building, if constructed, is roughly a mile from the nearest residences.

While a data building is technically allowed at the site under Hamilton’s zoning rules, the proponent was snagged while attempting to create a new lot for the project. A Hamilton councillor is currently leading a public effort to create a framework for these types of projects, with another one on the horizon in a former newspaper building. It’s not clear whether that data center will require any approvals from the City.

Photo by Jeff Hayward

But the fight is far from over in Hamilton and across the country. Data centers are being pushed by the Canadian government, which announced its national AI strategy the same day as the Hamilton protest.

Aside from billions in funding for AI data center builds and related projects, the government says it hopes to create “up to 250,000 new jobs through AI adoption by 2031.” That plan includes “access to free AI literacy training, including reaching one million entry-level post-secondary students.”

The proposed AI center on Slate Asset Management’s industrial property is in partnership with the Digital Research Alliance of Canada, applying under the government’s AI Sovereign Compute Infrastructure Program. Because of this, the data center is being pitched as a “publicly owned” asset.

Photo by Jeff Hayward

Slate has a limited time frame to appeal the decision to the Ontario Land Tribunal, though it’s unclear whether it will. It could also push for the build without permission to allocate property for it, which was the actual request that was denied, not the AI data campus itself.

What is clear from social media and elsewhere is that Hamilton residents, who have endured decades of pollution from local steel production, are ready to fight again if the AI project moves forward. For now, those opposed to the project are celebrating the win.