In our December 23, 2025, blog post, we discussed some of the potential environmental permitting requirements associated with data centres. Since that time, the issue of data centres has continued to garner attention, much of it negative.
Background on Data Centers
The first data center was built in 1945 at the University of Pittsburgh. Hyperscale data centres (that have been getting a lot of attention) began to be built in the mid-2000s (Enconnex).
The definition of a hyperscale data centre, according to Cisco, is, “A hyperscale data center is a large-scale digital infrastructure platform engineered to support massive data processing and storage requirements. While the term is most commonly associated with major public cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, hyperscale refers specifically to an architectural approach that allows for extreme scalability and high performance.”
Globally, there are about 12,500 data centers, 1,300 of which are hyperscale sites. According to Statista, Canada has 337 data centres. Five of those data centres are classified as hyperscale data centres.
What is Driving the Growth in Data Centres?
Artificial Intelligence and the billions of interconnected devices used by society are driving the increased demand for more computing power. The data centres need reliable and consistent power, cooling, and infrastructure (proximity to high-speed networks).
Recently, some communities have taken steps to put the brakes on the data centers. For example, in Ontario, Oakville voted in August in favour of a one-year moratorium on data centres. In September, Mississauga voted to put a one-year hold on data centres.
Some of the expressed concerns include noise, vibration, emissions, and electricity and water demands.
Aside from these communities, there is an increased push by some provinces to use some of the natural advantages in Canada to attract new data centres, including Ontario and Alberta.
Artificial Intelligence and the billions of interconnected devices used by society are driving the increased demand for more computing power.
Ontario Data Centre Playbook
From the Ontario Media Backgrounder, the Playbook, which is currently under development, states, “With the expansion of Artificial Intelligence (AI), machine learning and cloud computing, Ontario is experiencing rapid growth in data centre development due to its clean and reliable electricity system, ample land space, cool climate and skilled workforce.”
The Core Principles include the following:
- Data centres must invest substantially, both financially and non-financially, in Ontario and local communities.
- Data centres pay the full cost of electricity. This includes generation and transmission upgrades.
- Ontario will only offer non-financial support to attract data centre investments.
The Playbook also includes Three Pillars: (1) Advance Economic Development, (2) Protect Data Security and Digital Sovereignty, and (3) Invest in Communities and Earn Public Confidence.
For more information, also see the blog post by Gowlings, “Ontario’s Draft Data Centre Playbook: Implications for investors, operators, and developers.”
Alberta Setting “Precedent in Canada” to Attract Hyperscalers
Alberta is also promoting its province as a natural fit for data centres. According to its website, Alberta has the energy, climate, people, and rules that make it the choice for locating data centres.
Alberta is also promoting that they have the largest AI data centre in Canadian history ($13 billion in Sturgeon County); Albertans pay no subsidies, nor do they provide “discounted power.”
Bennett Jones recently attended the Data Centre 2026 Conference in Calgary and shared the following in a blog post.
“Alberta’s data centre landscape has shifted significantly in the past 18 months. What was once speculative interest has crystallized into billions of dollars in committed investment…”
“Alberta has arrived as a serious destination for hyperscale data centre investment. Meta’s announcement in July 2026 of a C$13-billion, gigawatt-scale data centre in Sturgeon County, its first in Canada, has materially advanced the conversation.”
“Representatives from Meta and AWS were among the conference speakers. Rachel Curran, Head of Public Policy for Meta Canada, noted that Alberta has set a precedent in Canada and created a regulatory environment capable of attracting major hyperscalers.”
Demand for Data Centres and Environmental Protection
As our global demand for more computing power continues to grow, so will the demand for more data centres. As with any development, environmental regulations need to be factored into the decision-making process.
In Michigan, our colleagues in our US office have assisted communities by providing environmental regulatory support (see a recent recorded public hearing).
If you have questions or need assistance with an environmental issue, contact Christopher Paré, P.Geo., or Ehsan Momemi, P.Eng., at 519-948-7300, Ext. 114 and Ext.123, respectively.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for more than 45 years. He has written hundreds of blogs and articles. His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.
Christopher Paré, P.Geo., reviewed this blog. Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office. Chris has more than 35 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning. Chris is a frequent speaker, author, and expert witness. See Chris’ bio.
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