City councillors in Sault Ste. Marie have rejected a proposal to pause new data center developments in the city following a 90-minute debate on Monday night. The discussion arose after a local petition raised concerns about a cybersecurity monitoring and training center, which includes a data center, approved by the city council in December 2025 for the west end of the city. Spearheaded by cybersecurity company Protexxa and Missanabie Cree First Nation, the project aims to utilize artificial intelligence (AI) to address 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 in Sault Ste. Marie until additional policies and protocols were put in place. Caputo emphasized the importance of informed decision-making based on community input.

However, Mayor Matthew Shoemaker and several councillors expressed reservations about the specifics of the moratorium proposed by Caputo, leading her to withdraw the motion. Instead, it is anticipated that a new motion will be introduced at the next meeting on August 31, tasking city staff with developing a dedicated framework for data centers in the city, including provisions for public consultation.

Regardless of the outcome of the upcoming vote, it is unlikely to affect the Protexxa data center project approved in the city-owned industrial park on Yates Avenue, as the property sale has not been finalized yet.

Mayor Emphasizes Existing Measures to Regulate Data Centers

Mayor Shoemaker cautioned against categorizing all data centers in the same light during the debate, highlighting the distinction between conventional and “hyperscale” facilities that consume significant resources. While some facilities in North America require over 100 megawatts of power, Protexxa’s plans for the Sault center indicate a much lower consumption level of 5 megawatts.

Shoemaker clarified that the city’s Public Utilities Commission (PUC) has confirmed the capability to support a 5-megawatt facility, emphasizing that this demand is well within the city’s power capacity. The PUC currently oversees 120 megawatts of consumption power in Sault Ste. Marie but lacks the capability to accommodate a “hyperscale” facility.

According to Peter Tonazzo, the city’s Director of Planning, existing server rooms in the city are comparable in size or even smaller than the proposed Protexxa data center. City CAO Tom Vair stressed that any proposed data centers, regardless of size, would need council approval for rezoning to ensure suitability.

Given the existing processes in place to evaluate and approve data center projects, Mayor Shoemaker argued against imposing a moratorium on future proposals, citing the thorough review and consideration that went into approving the Protexxa site. He acknowledged the need for process enhancements but defended the decision-making process that led to the project’s approval in December.