With New York pausing permits, many projects are approved ‘without adequate public consultation,' says expert
HR and workforce planning professionals in construction, utilities and regional economic development should take note of a widening debate over Canada's data centre boom, after New York became the first U.S. state this week to pause new hyperscale data centre permits, a move that could foreshadow similar limits on where and how quickly related jobs materialize in Canada.
New York Governor Kathy Hochul signed an executive order barring new large data centre permits for one year, according to CBC News. "It's my responsibility to take action and lead," Hochul said of the decision.
Canada currently has five hyperscale data centres, with many more planned or under construction, according to research from York University cited by CBC News. Hyperscale facilities are defined as those with 50 megawatts of power or more.
Alberta accounts for 90% of Canada's planned data centre capacity, CBC News reported, partly due to the province's relatively low electricity costs. Meta has announced plans to build its first Canadian facility near Edmonton, a project signalling continued demand for skilled trades and construction labour.
Hamilton, Ont., came close to approving its own moratorium this week before city council voted the measure down. Anne Pasek, a Trent University associate professor who studies data centres, told CBC News that "this … seems to be our hot data centre summer," adding that many projects are approved "without adequate public consultation."
Canadian employers in construction, skilled trades and technology may face volatile, concentrated hiring demand ahead, as a federal document shows proposed data centre projects nationwide could total more than 20 gigawatts, according to previous data shared by The Canadian Press (CP).
Energy, water and community pushback
Data centres accounted for about 1.5% of global energy consumption in 2024, according to International Energy Agency estimates cited by CBC News, with that figure expected to more than double by 2030. Facilities are cooled largely through evaporative methods requiring freshwater.
Shaolei Ren, a University of California, Riverside professor who researches energy-efficient computing, told CBC News that water demand from data centres is "really localized," even though total consumption remains lower than some other industries. He added that "the key challenge for energy is really the peak power usage in the summer."
Two-thirds of Canadians surveyed by Angus Reid said they would oppose a large AI data centre near their home, CBC News reported, and nearly 200 people rallied in Regina in April against a planned Bell Canada facility. Pasek said communities are "thinking about adding a small city onto our grids" — pressure that can delay construction timelines employers rely on for staffing.
Provinces’ different approaches
CBC News surveyed every province and territory on whether they would consider their own moratoriums; none confirmed plans to do so, though several did not respond. Alberta said it welcomes "responsible AI data centre investment," with Technology Minister Nate Glubish telling CBC News that some jurisdictions "rushed to attract data centres without doing their homework" on grid and water impacts.
Manitoba rejected a proposed data centre in Île-des-Chênes because it would not create enough jobs to justify its resource demands, CBC News reported. Premier Wab Kinew has said the facilities do not appear to be "in the best interests of Manitobans."
Quebec said it remains open to development for reasons of "digital sovereignty," while Saskatchewan evaluates projects individually and the Northwest Territories and Yukon cited limited demonstrated demand for large-scale builds in their regions.
Meta and Bell have both previously announced data centre projects in Canada, creating a demand for thousands of workers.
