A small New Brunswick municipality is considering data centre rules to keep development decisions local.
Earlier this month, the municipality of Fundy Shores discussed introducing a zoning by-law amendment to its rural plan to regulate development.
Mayor Denny Cogswell said the move comes as council believes developments like these require community support.
“I think you can check all the boxes for the environmental impact assessments, but without the social license being part of that, then I feel like you are failing people in those communities,” he said.
Cogswell shared the same sentiment in a statement on behalf of the Fundy Shores council last month, when they joined the province’s opposition call for a moratorium on large-scale data centres in New Brunswick—prompted by residents’ concerns over a proposed $2 billion data centre in Saint John.
RELATED: Lorneville residents seek accountability on data centre impacts
RELATED: N.B. government rules out data centre ban, but plans limits on future development
Council said it is not opposed to development, noting their advocacy for nuclear expansion and opportunities associated with medical isotopes, but said the difference is that Fundy Shores has residents’ approval.
“We have worked to build that social license for nuclear through engagement, transparency, trust, and an ongoing relationship with our residents over the many years. That same standard must be applied to AI data centres,” read the statement.
Council also said the province should not be able to introduce a policy framework that overrides local planning decisions, or “allows large-scale developments to proceed over the objections of communities expected to host them.”
Cogswell added that the discovery of ten data centres interested in connecting to the province’s grid also prompted the measures.
He explained that, as a small, relatively new municipality with limited infrastructure, much of its surrounding land is owned by the province or owned by outside agencies.
While no data centre has been proposed in the community, Cogswell said the municipality’s previous rural plan could have allowed one to be built in certain areas without requiring council approval.
According to council documents, the amendment would require any future proposal to seek council approval through a rezoning process, rather than being permitted under existing zoning rules in some areas. It would also temporarily prohibit new data centre development while the municipality finalizes its regulations.
“We are trying to put the power back on the community,” he said.
Prof says by-law change part of a ‘broader trend’
Toronto Metropolitan University communications associate professor Sibo Chen said Fundy Shores’ decision to introduce their own regulations is part of a “broader trend.”
Chen, who studies public discourse surrounding data centre controversies, said peer-reviewed research has shown the environmental impacts of data centres extend beyond their immediate surroundings, leading more neighbouring communities to feel they should have a voice in the decision-making process.
He added that opposition is also being fuelled by broader public skepticism toward large AI corporations and concerns that the economic benefits promised by these projects may be short-lived.
“I think people’s concern is that, say, what would happen if, say, the granting of the social license is a one-off thing?” he explained. “So, we gave our consent, and they are going to just build it, and we as local communities, we’ll lose the ability to actually continue to engage with the reality of living next to such a giant infrastructure.”
Chen said beyond pointing out potential economic benefits in terms of job creation and tax revenue, governments and proponents must translate those abstract economic figures into tangible, long-lasting benefits for residents.
Opponents of data centres praise initiative
In a statement, member of advocacy group Save Lorneville Chris Watson said he is glad to see Fundy Shores introduce regulations.
Watson explained much is still unknown about hyperscale data centres and their impact on nearby communities.
He states that through the Saint John process residents have learned that many city officials and councillors did not understand what a hyperscale data centre was, how one operates one or the scale of its potential impacts when they approved the rezoning.
“It’s encouraging to see municipalities like Fundy Shores doing what municipalities should do: showing foresight, planning, and putting protections in place for residents before these developments arrive,” he wrote.
“Saint John, meanwhile, seems to have followed the same old approach: getting excited by talks of ‘billions’ in investment, invite the industry in, and worry about the consequences later for nearby residents.”
Municipality hosting public hearing before final decision
Fundy Shores’ proposed amendments have yet to be approved.
The town will host a public hearing session on Nov. 17 to get resident feedback.
Following the public hearing, Cogswell said they will complete three readings of the by-law, hoping to pass it during the first week of December, or by January at the latest.
Cogswell clarified that council is not opposed to Fundy Shores eventually hosting a data centre, but they believe the process should start with residents.
“We are saying, ‘let’s take a step backwards. Let’s pause for a little bit, gather all the information that we can, and then come back to do the assessments as needed,’ but also come back to the community before you do all that and find their views and feelings on it,” he said.
If the amendment passes, Fundy Shores would be the first municipality in the province to officially create its own regulations for data centres.
