The temporary restriction would be in place for up to one year as the City conducts a comprehensive review of the sector.
Local government | July 30, 2026
Council has approved a motion directing staff to prepare an Interim Control
By-law (ICBL) that would prohibit the approval of development of digital infrastructure projects, such as data centres, for up to one year. City staff are also undertaking a comprehensive review of this emerging sector to assess whether updates to City policies and regulations such as the Official Plan and Zoning By-law are needed.
The growing use of digital services is increasing demand for larger-scale data centres across Canada. The City’s comprehensive review will evaluate impacts on municipal infrastructure, economic activity, the environment, noise levels, energy and water consumption. It will also consider the role of provincial and federal governments in the regulation of data centre development. There will be opportunities for public engagement.
The review aims to help inform future policies and decision-making related to digital infrastructure while balancing economic growth, sustainability and community well-being.
An ICBL is a tool under the Planning Act that allows a municipality to temporarily pause development of a certain use in a certain area for up to one year while the City reviews planning policies to determine the best long-term approach. In this instance, digital infrastructure developments (including data centres) will be paused in Mississauga while the City studies the land use planning implications of data centres.
The motion, brought forward by Councillor Martin Reid (Ward 9), directs staff to prepare an ICBL for approval at the City’s next Council meeting.
Data centres are secure facilities containing computer servers that store and process digital information. This type of digital infrastructure supports delivery of digital information, including artificial intelligence (AI) services, to residents and businesses. This includes banking, healthcare, business operations, cloud computing and AI applications.
The City has received a rezoning application to permit a data centre in the Meadowvale Business Park. Data centres are currently permitted in designated Employment Areas. They are considered to be Warehousing, Distribution and Wholesaling under the Official Plan and Warehouse/Distribution or Science and Technology Facilities under the City’s Zoning By-law. Several data centres are currently operating in the City of Mississauga. Given the larger size and scale of data centres being proposed, the City’s comprehensive review will include whether the current classifications continue to be appropriate.
Staff will prepare the ICBL and it will be brought forward for Council approval on September 16, 2026. If approved, data centre development would be prohibited until the ICBL expires.
Staff will also bring an interim report to Council this fall. The interim report will provide more details around the study scope and consultation strategy and review timelines. Once the comprehensive review is complete, City staff will bring a report to Council with recommendations for how data centres will be addressed in the future.
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