After a 90-minute debate on Monday evening, city officials in Sault Ste. Marie rejected a proposal to stop new data center projects in the northern Ontario city. The discussion revolved around the contentious artificial intelligence facilities following a local petition opposing a cybersecurity monitoring and training center, including a data center, approved by the city council in December 2025. Spearheaded by cybersecurity firm Protexxa and Missanabie Cree First Nation, the project aims to utilize AI for identifying and resolving cyber issues for various organizations and governments.
During the council meeting, Ward 3 Coun. Angela Caputo suggested an interim control bylaw, also known as a moratorium, to halt any new data center proposals until additional policies and protocols were established. However, Mayor Matthew Shoemaker and some councilors expressed reluctance towards specific aspects of the moratorium, prompting Caputo to withdraw the motion.
It is anticipated that a new proposal will be presented at the upcoming meeting on Aug. 31, tasking city staff with developing a dedicated municipal framework for data centers in Sault Ste. Marie, along with provisions for public input. The impending vote is unlikely to impact the approved Protexxa data center project on Yates Avenue in the city-owned industrial park, pending finalization of the property sale.
Mayor Shoemaker cautioned against treating all data centers alike, highlighting the distinction between “hyperscale” facilities that consume significant resources and the more modest energy requirements of the Protexxa project. The city’s main electricity utility, PUC, confirmed the capacity to accommodate the five-megawatt facility proposed by Protexxa, emphasizing that the city’s power system lacks the capability to support a “hyperscale” operation.
City officials emphasized that existing procedures already address the approval and zoning of data center projects, emphasizing the need to uphold a rigorous decision-making process. Shoemaker defended the previous decision on the Protexxa project, citing thorough reviews, consultations with relevant agencies, infrastructure assessments, and environmental considerations. He stressed the importance of refining existing processes rather than imposing a blanket moratorium on future data center proposals.
