By Kezia Royer-Burkett, Local Journalism Initiative Reporter
The proposed data centre planned for Burlington’s south end may face fewer municipal barriers after council rejected a proposed one-year moratorium on new data centre applications on July 21. New information provided to Burlington Local-News.ca by Burlington Hydro addresses several of the public’s biggest concerns about the project.
Council heard from 16 delegations before directing staff to review municipal regulations through the Official Plan process and continue advocating to the provincial and federal governments for a coordinated regulatory framework governing data centres.
While no final approval has been granted for the proposed facility at 3110 South Service Road, the former Tucker’s Marketplace site, council’s decision allows the application to continue through the city’s planning process.
Separately, Burlington Hydro has provided new information addressing concerns about the project’s impact on the local electricity system and existing customers.
According to Burlington Hydro, if approved, the proposed 20-megawatt data centre would be responsible for funding its own customer-specific electrical infrastructure, including two new breaker positions at Hydro One’s Cumberland Transformer Station and two distribution feeders connecting the station to the site.
The utility company also confirmed that the Cumberland Transformer Station currently has enough available capacity to accommodate the proposed load and that no significant upgrades to Burlington Hydro’s local distribution network are anticipated at this time.
Perhaps most notably for residents concerned about rising electricity bills, Burlington Hydro stated that it does not anticipate nearby homes or businesses experiencing an increase in electricity rates as a direct result of the proposed development. The utility noted that electricity rates in Ontario are regulated through the Ontario Energy Board and that adding a new customer does not automatically increase local distribution rates.
Burlington Hydro also explained that it evaluates whether its distribution system can safely and reliably serve new developments while coordinating with Hydro One, which owns the transformer stations supplying electricity to Burlington.
Ward 3 Councillor Rory Nisan described council’s decision as a victory for balanced economic development after the proposed moratorium was rejected.
“Common sense has prevailed over a campaign of fear,” Nisan said in a statement following the meeting. He argued that Burlington is unlikely to receive another major data centre proposal in the near future because of hydro capacity limitations, giving the city time to strengthen its policy framework while allowing the current application to move forward.
Ward 2 Councillor Lisa Kearns, meanwhile, thanked residents for their participation and emphasized the need to balance investment with environmental, infrastructure and quality-of-life considerations. She highlighted council’s direction for staff to return later this year with additional reports and recommendations on data centres.
Mayor Marianne Meed Ward similarly emphasized the need for regulation and public transparency, noting that council directed staff to review municipal regulations through the Official Plan process while advocating for provincial and federal standards.
“The top priority for all of council, and our staff, is protecting our quality of life, and the public health and wellbeing of our entire community,” she wrote.
The council debate highlighted the challenge municipalities across Ontario are facing as demand for data centres that support cloud computing, artificial intelligence, and other digital services grows. While many residents raised concerns about noise, environmental impacts, electricity consumption and transparency, business organizations argued that data centres represent an important opportunity for economic investment, employment, and future commercial property tax revenue.
Although additional planning and technical reviews remain before any final development proceeds, council’s direction allows the current proposal to continue through the city’s planning process while Burlington works toward clearer policies for future data centres. Staff are expected to return later this year with additional reports and recommendations.
