Consumers call on Hamilton City Council to reverse course on proposed AI data centre moratorium

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Consumers call on Hamilton City Council to reverse course on proposed AI data centre moratorium

Brantford, ON: The Consumer Choice Center is criticizing Hamilton City Council’s proposal to put a moratorium on the construction on new AI data centres, which risks leaving the city out of the digital revolution and could cost Hamilton important projects and jobs. Council today directed staff to draft a resolution on a moratorium, which will come back to Council on July 15.

Jay Goldberg, the CCC’s North American Affairs Manager, commented on the proposed move.

“Today’s move by Hamilton City Council is an unfortunate development that risks leaving the city behind when it comes to embracing the digital revolution and will cost Hamiltonians jobs. There are currently two proposed data centre projects that could be impacted by this moratorium and more on the way. The construction of these data centres involves skilled tradespeople, while their positive impact on local employment continues even after construction finishes with permanent employment for those in technical and operational roles,” said Goldberg.

The motion Hamilton City Council passed specifically cites concerns regarding energy, water use and noise. According to the government of Canada, about 91 per cent of Ontario’s electricity is produced from zero-carbon sources. This suggests that Ontario-based data centres would be some of the most environmentally friendly out there. In addition, while water usage can be a concern, the typical 18-hole golf course uses about 300,000 gallons of water per day during summer months yet is not subject to the same scrutiny. Finally, the typical data centre perimeter fence mitigates noise to 45-to-65 decibels of ambient sound, which is roughly in line with the hum of a refrigerator and is far quieter than the stopping and acceleration of city buses or motorcycles.

“The critics of the construction of new AI data centres cite concerns that simply don’t hold up to scrutiny. Hamilton City Council’s decision to plow forward with this moratorium is a huge mistake and will cost the city jobs and tax revenue. When city staff come back with a proposed bylaw on July 15, Councillors should reconsider their position and scrap this anti-development bylaw,” Goldberg added.

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