Milton Council orders a made-in-Milton planning study of AI data centres but rejects a one-year town-wide pause

What Council decided

Milton Council considered a notice of motion titled "AI Data Centres" at its September 14, 2026 meeting, the last of the current term. Council first voted to waive its procedure rules so the motion, introduced that evening, could be dealt with the same night. At a councillor's request, the motion was then split under the Procedure By-law into two separate votes, according to the Town's recording of the meeting.

The first part, directing staff to review the planning considerations for data centres and recommend a "made-in-Milton" planning framework, carried. The second part, an interim control by-law under section 38 of the Planning Act that would have temporarily prohibited new major digital infrastructure facilities across the whole town for one year, was defeated. At the end of the meeting Council passed by-laws 074-2026 through 093-2026 "save and except" by-law 092-2026, the interim control by-law.

What the study covers

The approved motion asks staff to review the planning considerations associated with data centres and bring forward recommendations for a made-in-Milton planning framework. The review is to include, but not be limited to:

• Official Plan policies
• Zoning By-law regulations, including appropriate definitions for these uses
• Planning application requirements and supporting technical studies
• Any other planning tools or requirements needed to regulate data centres in Milton

Staff are to engage Milton Hydro, Halton Region, Conservation Halton, Indigenous communities, industry and technical experts, residents, community organizations and other interested parties. The Halton Federation of Agriculture and Sustainable Milton were added to that list before the vote.

Why it came to Council

The motion said residents had raised concerns about electricity demand and grid capacity, water consumption, wastewater servicing, noise, greenhouse gas emissions, transportation, infrastructure, emergency management, employment, municipal finances and community benefit. It described data centres as presenting planning challenges including grid capacity, environmental impacts, compatibility with surrounding uses, and the balance between land consumed and jobs created.

Sustainable Milton, a local environmental group, delegated in support of the one-year pause and asked to be among the organizations consulted, according to its delegation request on the meeting record. A resident also delegated on the item.

What staff told Council

Asked how a data-centre application would be handled without an interim control by-law, Town planning staff said it would go through the regular rezoning process: notice to the public, a statutory public meeting at Council where residents can delegate, a staff review of the technical studies, and a recommendation to Council. Staff said that typically takes six to eight months.

Staff also told Council that, because the proposed by-law covered the entire town, passing it would have prevented Council from passing another town-wide interim control by-law, on any matter, for three years; a by-law limited to specific properties would still have been possible. Staff confirmed that limiting the by-law to Milton's urban areas was an option. In debate, several members said they did not want a pause that could run one year, and be extended to two, to bind the council elected in October.

What happens next

The approved motion sets no date for the staff report. The September 14 meeting was the last of the current term; the new council takes office on November 15, and the next Council meeting on the Town's calendar is November 16. Until a framework is in place, a data-centre application would be processed under the existing rules, as staff described.

A separate application before the Town, asking to bring about 240 hectares of farmland south of Britannia Road into the urban area for an industrial park, lists data centres among the uses it seeks.