The moratorium vote comes as local lawmakers across the country wrestle with the noise, energy and water concerns around a new wave of data centres powering the boom in artificial intelligence.

Backers of Hamilton's proposal say it will ensure the city can establish proper guardrails around the new facilities and guarantee public benefits.

Critics say the pause could jeopardize investment in a city hit hard by steel tariffs and risks sweeping up smaller research-focused data centres in its net.

A developer's plan to include a data centre campus in its overhaul of a portion of the city's industrial waterfront prompted backlash and fuelled the push for a moratorium in recent weeks.

Mississauga, Burlington and Vancouver are expected to debate their own moratorium proposals this month.

This report by The Canadian Press was first published July 15, 2026.