GTA Construction News staff writer
The Town of Oakville is proceeding with a review of its planning policies and regulations for data centres after an interim control by-law passed its appeal period without any appeals.
Interim Control By-law 2026-129, approved by council Aug. 11, temporarily restricts new data centre development in specified areas of the town for up to one year while municipal staff assess the potential impacts of these facilities and determine whether changes to the planning framework are needed.
The review will examine land-use compatibility, infrastructure capacity, electricity and water demands, noise and environmental impacts. Staff will also consider the respective roles of municipalities and other agencies in planning for data centre development.
While the town has not received any formal applications for a data centre, preliminary industry discussions suggest there may be interest in Oakville. Council’s decision to pass an ICBL does not represent a permanent prohibition on data centres. It provides time to complete the necessary study and ensure Council has the information and analysis needed to determine whether changes to the Town’s planning framework are appropriate.
The interim by-law decision followed a Mayoral Direction issued July 21, 2026, and a staff memo received by Council on August 10 outlining the infrastructure, environmental, legislative, economic development and municipal policy considerations associated with potential data centre development. It does not permanently prohibit data centres but provides time for the town to complete its review and consider potential regulatory changes.
“The decision to act first means the appeal period is behind us, the by-law is secure, and the review now moves into its next phase,” Mayor Rob Burton said.
“We will study the impacts and implications of data centres on our infrastructure, electricity, water, noise and the environment, so we have the right framework in place.”
Burton said responsible development must serve the town’s long-term interests without negatively affecting municipal services or community infrastructure.
Municipal staff will continue the review and provide updates as the work progresses.
