Mississauga Council Considers One-Year Pause on New Data Centres

Mississauga City Council is considering a temporary pause on new data centre development.

The proposed bylaw would stop the approval of major digital infrastructure projects, including data centres, for up to one year. The pause would give city staff time to study these facilities and decide if new planning rules are needed.

Council approved a motion on July 29, 2026, asking staff to prepare the temporary bylaw. Ward 9 Councillor Martin Reid brought forward the motion.

The Interim Control By-law, also known as an ICBL, was scheduled to return to council for approval on Sept. 16, 2026.

The city’s official project page still describes the bylaw as being prepared. This means the pause should be treated as proposed until the city confirms the final vote and publishes the approved bylaw.

Why Mississauga is reviewing its rules

Data centres are secure buildings that hold computer servers, storage drives and other network equipment. The equipment stores and processes digital information.

These facilities support services used by residents and businesses. This includes banking, health care, cloud computing, business systems and artificial intelligence tools.

There are different kinds of data centres. They include AI, cloud, enterprise and hyperscale facilities.

Demand for larger data centres is growing across Canada. At the same time, cities are asking questions about how these projects may affect local services, land and nearby communities.

Mississauga’s review will examine:

• Water use
• Energy use
• Noise levels
• Effects on the environment
• Pressure on city infrastructure
• Effects on local economic activity
• The role of the Ontario government
• The role of the federal government
• Possible changes to the Official Plan
• Possible changes to zoning rules
• The city’s process for approving these projects

The city says the goal is to support economic growth while also protecting the environment and the well-being of residents.

Current data centre rules

Several data centres already operate in Mississauga.

Data centres are generally allowed in areas set aside for employment uses. The city currently places them in broad land-use groups such as warehousing or science and technology facilities.

City staff will study whether these groups are still suitable. New data centre proposals can be much larger than older facilities. They may also use more power, water and other public services.

An ICBL is a planning tool allowed under Ontario’s Planning Act. It lets a city pause a certain type of development while it studies its planning policies.

If the Mississauga bylaw is approved, development approvals for major digital infrastructure projects would be paused while the review is underway. The pause could last for up to one year.

It would not be a permanent ban on data centres.

Data centre proposed for Tenth Line West

The city is currently reviewing a rezoning application for a data centre at 0 Tenth Line West.

The proposal is for a two-storey building with an area of 20,439 square metres, or about 220,000 square feet.

The city’s Planning and Development Committee has asked staff to work on several outstanding matters. These include engineering, city services, stormwater management, building design and the layout of the property.

The application has brought more attention to how Mississauga reviews large data centre projects.

Residents have also raised concerns about possible noise, water use, power use and other effects on nearby communities.

Mayor Carolyn Parrish said there are still many questions about these facilities.

“We don’t know what data centres are gonna do to our communities,” Parrish said during the July council debate, according to The Pointer.

Public consultation and next steps

The city started its policy review in summer 2026.

An interim report is expected to go to council in fall 2026. The report will provide more information about the study, consultation plans and review timeline.

Public engagement is planned for fall and winter 2026. The city says it will post details about future public meetings and other ways to take part.

Staff will continue the policy review during the same period. They will study whether the Official Plan, Zoning By-law and development approval process need to be changed.

Final recommendations are expected to go to council between spring and summer 2027.

Council will then decide how data centres should be handled in the future. It may approve new planning rules, zoning requirements or other controls.

Until Mississauga confirms the final decision on the ICBL, the temporary pause should be described as proposed rather than final.

Sources

• City of Mississauga — “Data centre policy review”
• City of Mississauga — “Mississauga moves to pause data centre development”
• City of Mississauga Council — “Council Agenda, September 16, 2026”
• The Pointer — “Mississauga becomes first Ontario city to pause new AI data centres, but proponent likely to appeal”