Cumberland council moves forward with data centre moratorium

The Municipality of Cumberland is moving ahead with a moratorium on data centres that support artificial intelligence.

On Tuesday, a bylaw that could start a six-month moratorium on development permit applications for data centres unanimously passed first reading by council.

In the meeting, Coun. Jennifer Houghtaling said residents are worried about how water and electricity used by data centres could impact their lives as well as the environment.

"I believe this moratorium should be in place as long as it takes to make an informed decision. Some are comparing Nova Scotia to Alberta. Here in Nova Scotia, when you sneeze, the farmer next over catches your cold," said Houghtaling.

Earlier this month, Oakville, Ontario became the first municipality in that province to enact a one-year moratorium on new data centres. Cumberland Mayor Rod Gilroy believes his council is the first in Nova Scotia to go in the same direction, while regulations can be drafted.

"To sit back and do nothing was never an option. Be proactive and learn and take it all in and make a good decision," said Gilroy in an interview after the meeting.

The issue was initially brought to council in June after residents expressed concern over a land purchase in Malagash.

Mississauga, Ont.-based company 3Sha Infotech Inc. owns 108 acres of farmland in Upper Malagash. CBC News made multiple attempts to reach the company to ask about its plans for the property, but was not successful.

Cumberland CAO Greg Herrett said at this point the creation of a moratorium is proactive and based on concerns in the community.

"We, at this point, are not in receipt of any sorts of inquiries. We are not aware of potential applications. Our staff are not engaged with anyone kicking the tires about an application," he told councillors.

Herrett said staff cannot accept any applications to consider data centres if any are submitted after first reading. He said second reading of the bylaw will be scheduled after a public hearing, which is expected to be held in September.

Kate Dunn, who lives in Malagash, said the pause on AI data centres is a healthy decision. She said noise is one example of how any facility would run contrary to rural life in Cumberland County.

"There seems to be little return for local people. I personally think AI can be put to good use, but right now the expansion is out of control.

"It's distorting so many things in society, environmentally, financially, everything … these wild running horses have to be reigned in and we need more time to consider their value and whether we want them," said Dunn.

Dunn believes it is "extremely likely" the Houston government could overrule municipal bans or regulations, similar to what's happened with wind turbine setbacks.

CBC News requested an interview with Municipal Affairs Minister John A. MacDonald on Tuesday.

In a statement, the department said it is not developing a planning framework for data centre applications.

"It may be a question for the far future. Like we've said, to move ahead with data centres, we need to ensure our grid is protected and the province is protected," said a spokesperson.

As AI data centres rapidly multiply across North America, so too does the opposition toward them.

There have been large protests and court battles over data centres in Canada. Meanwhile, Alberta is embracing plans by companies such as Meta which announced a project in July.

In June, an Angus Reid poll found that 68 per cent of respondents would oppose a large AI data centre being built within a few blocks of where they live.

The poll also found that 68 per cent of respondents wanted governments to heavily regulate AI, even if it slows development. Fifty-two per cent said they thought AI data centres were a bad thing for job creation, while just 16 per cent thought AI was a good thing for job creation.