• Regional staff will assess data centres' economic opportunities alongside their electricity, water and wastewater requirements
  • The report will also examine emissions, water conservation, noise, air quality, groundwater and Indigenous perspectives

The fact

Waterloo Region will prepare a report on the economic, infrastructure, and environmental implications of data-centre development. A motion from regional councillor Colleen James asks staff to examine potential investment, innovation and employment benefits, as well as the demands data centres could place on electricity, water and wastewater systems.

The review will also consider greenhouse-gas emissions, water conservation and operating practices. Amendments expanded its scope to include noise, air quality, groundwater and Indigenous perspectives. The motion does not impose a moratorium or approve any data-centre project. Since January 2025, land-use planning responsibilities in Waterloo Region have largely shifted to its cities and townships, while the Region continues to oversee infrastructure including water and wastewater services.

The assessment

The report gives Waterloo Region a way to assess the infrastructure effects of data-centre development even though land-use approvals now sit with local cities and townships. Those municipalities decide whether projects can proceed through the planning process, while the Region remains responsible for understanding how development could affect water, wastewater and other regional services.

The report will be most useful if it translates the scale of proposed data centres into specific infrastructure requirements. Electricity demand, water use, wastewater volumes, and other operating impacts can then be considered alongside potential employment and investment benefits. For BTW readers, the review does not create another approval stage. Its practical value will be in giving local planning authorities and regional infrastructure teams a common set of information to use when assessing future data-centre proposals.

What to watch

Watch for details on how Waterloo Region will measure electricity demand, water and wastewater requirements, employment and environmental effects, and whether different project sizes will be assessed differently. Also watch whether Kitchener, Waterloo, Cambridge or the region’s townships use the findings when setting planning or servicing requirements for future data-centre projects.