One Ontario city just banned new data centres while its neighbour is welcoming a multibillion-dollar one.
Councillors in Mississauga, Ont., voted 11-0 on Wednesday morning to enact a temporary ban on new data centre development in the city. But in nearby Vaughan, where a multibillion-dollar Microsoft expansion is underway, councillors rejected a similar proposal a day earlier.
Public resistance to data centres ramped up in Mississauga over the summer, incited by plans for a 320,000 sq ft, 40-megawatt data centre proposed by Prologis, a real estate investment company. In response, Coun. Martin Reid introduced a motion for a data centre moratorium on July 29, which passed in a unanimous vote. More than 30 residents spoke in favour of the motion.
Wednesday’s vote gave final approval to the moratorium, placing a temporary freeze on new data centres with a capacity of 10 megawatts or greater for up to one year.
“This is a win for the residents, and I would like to think that getting the desired outcome today shows that your voice matters,” Reid said.
Reid plans to create a data centre advisory group to continue getting residents involved with development in Mississauga: “All of those amazing young people and brilliant residents that brought forth their input, I want to engage them.”
Whether Prologis will appeal the decision at the Ontario Land Tribunal remains to be seen, although the possibility drew concerns from the city’s legal staff at the July meeting. In an email to Canada’s National Observer, a Prologis spokesperson said it “would be premature to comment on any specific next steps.”
Asked whether Prologis would continue to pursue their Mississauga project after the moratorium expires, the spokesperson said: “We remain committed to Mississauga and confident that a carefully planned data centre in Meadowvale Business Park can bring significant long-term economic benefits to the community.”
Vaughan rejects moratorium
Nearby in Vaughan, councillors introduced two motions about data centres in their meeting on Tuesday.
Coun. Gino Rosati proposed a review of Ontario’s forthcoming AI strategy, following from the draft Data Centre Playbook that Premier Doug Ford announced in August. Staff would examine the province’s final playbook to see if updates to the city’s policies or bylaws are required, he said.
Separately, Coun. Mario G. Racco recommended that Vaughan implement a moratorium on data centres like other municipalities in Ontario.
Vaughan is home to a multi-billion dollar data centre expansion underway as part of Microsoft’s $19-billion commitment to expanding AI infrastructure in Canada, but it is unclear whether the proposed moratorium would have stalled the expansion if it was approved. Microsoft and the City of Vaughan’s Mayor’s Office did not respond to CNO’s request for comment.
Vaughan residents echoed all the usual concerns: Data centres often consume more than their fair share of water and electricity, demand could hike energy prices and new facilities may lead to rising greenhouse gas emissions or local environmental impacts.
“You all provided your concerns here today, [and] I share those concerns,” said Mayor Steven Del Duca.
But by the end of the meeting, Vaughan’s city council rejected the moratorium proposal in a 9-1 vote, with all members except Racco voting against the temporary ban.
Instead, councillors voted in support of Rosati’s recommendation. Vaughan staff will review the province’s final data centre framework and report back in November with suggestions to improve the city’s planning policies or bylaws.
“We are responsible to plan ahead, not behind,” Racco said, in defence of his moratorium proposal. “Why don’t we do the honourable thing and put this moratorium in now?”
September 17th 2026
