A proposal to construct a two-megawatt artificial intelligence (AI) data center in Armour Township, Ont., has been withdrawn by a developer in response to public resistance. Almaguin Data, in a letter to the town council on June 1, explained that lacking ownership of the land at the industrial park for the intended project left them with limited options when faced with opposition from the public, particularly concerning environmental issues.
The company highlighted that the Ontario planning system provides mechanisms for recourse when developers own the land, such as through the Ontario Land Tribunal. However, without ownership, Almaguin Data expressed concerns that their investments in studies would be at risk if approvals were not obtained.
During a previous presentation to the town council, Almaguin Data’s founder, Matthew Fuller, outlined plans for the project, indicating it would have initially created employment for four individuals, with the potential to expand the workforce to between 10 and 12 employees as the center grew. The company intended to invest between $15 to $20 million over a period of up to five years to scale up the facility to a 10-megawatt data center, occupying an area of approximately three hectares.
The primary objections to the proposed data center centered on environmental considerations, particularly water usage. Jordan Gorlick from South River, Ont., voiced her apprehensions about the project, stressing the importance of the region’s water resources, given its popularity as a cottage destination. Despite the developer’s assurance that the data center would utilize less than 10,000 liters of water per day, Gorlick emphasized the finite nature of clean drinking water, suggesting that continued expansion of data centers could strain local resources over time.
Research from York University revealed a surge in the development of “hyperscale” data centers in Canada, with 96 such facilities in the pipeline boasting a capacity of 100 megawatts or more. However, this expansion has encountered resistance from various quarters, citing concerns over water consumption, electricity usage, and land utilization by these data centers.
An online petition opposing the Armour Township project garnered over 1,800 signatures, reflecting the community’s strong stance against the establishment of the AI data center in the area.