‘Wild West’ oversight: Vancouver councillor seeks tougher rules for AI data centres

People hold signs during a rally before participating in a march to protest the opening of AI data centres, in Vancouver, on Saturday, June 27, 2026. Telus is moving forward with two new AI data centres in Vancouver and the expansion of an existing facility in Kamloops. THE CANADIAN PRESS/Darryl Dyck

A Vancouver city councillor is calling for a moratorium on new AI data centres until a framework is developed to assess their environmental, economic and community impacts.

OneCity Vancouver Coun. Lucy Maloney is set to introduce a motion on July 15, titled “Addressing the Risks of Digital Infrastructure,” that would require city staff to report back on regulations governing AI-focused data centres before major new projects move forward.

The motion comes as investment in artificial intelligence infrastructure accelerates across Canada and Vancouver, including plans by Telus to develop two AI data centres in the city.

While Vancouver is already home to 16 data centres, the two recently proposed developments have sparked concern due to their proximity to residential and employment areas. One data centre is slated for 150 W. Georgia St., while the other is set to take over the former Hootsuite headquarters at 111 E. 5th Ave.

Next steps if the motion passes

Maloney’s motion seeks to pause the consideration of rezoning for the proposed Telus data centre in Mount Pleasant, and halt permitting decisions for the proposed facility downtown. “Hyperscale data centres bring new risks, and need thorough evaluation,” Maloney said in a statement Thursday.

“If companies want to build large data centres in Vancouver, we need an evidence-based, transparent and credible framework that would enable us to make more informed decisions about whether they should proceed, or not.”If her motion passes, City of Vancouver staff would be directed to create a stricter review framework for new data centres, including independent assessments of impacts such as water and energy use, greenhouse-gas emissions, noise, heat, air quality and employment benefits before major projects are approved.

Staff would also be required to examine whether existing bylaws are adequate, explore annual public reporting requirements and enforcement mechanisms for data centres, and consider ways for the city to secure greater public benefits from these developments.

Experts compare current regulations to the Wild West

When asked to describe Vancouver’s data-centre oversight, several experts compared it to the Wild West.

“You want to measure twice and cut once,” Andy Yan, director of SFU’s City Program, told CTV News Thursday. “Right now, Vancouver’s approach is more like ‘fire, aim, ready” than “ready, aim, fire.’ Without regulation, it kind of goes to the Wild West, in terms of land use.”

Simon Enoch of the Canadian Centre for Policy Alternatives says the entire country needs more oversight.

“We’re seeing very little regulation around where these centres should be built, noise suppression bylaws—you name it,” Enoch said in a recent interview with CTV Your Morning Vancouver. “It’s sort of the Wild West right now, other than sort of very basic energy requirements that you have in B.C., so I’d really like to see much more discussion around the ground rules.”

Learning from AI data centre pushback in the U.S.

Yan says Canada has the opportunity to learn from the challenges facing the U.S., where concerns about the impacts of large-scale data centres on local infrastructure and residents have sparked dozens of protests and lawsuits.

A report by the American Planning Association described 2025 as a turning point in data centre opposition, with 20 projects worth an estimated $98 billion in potential investment blocked or delayed.

“It’s better to study this type of land use and figure out a robust policy now as opposed to guessing, because guessing is expensive,” Yan notes.

He adds that Vancouver should approach this type of land use with flexibility.

“Technology moves very quickly. Going into these data centres, it may be very popular today, but what happens 10 years from now? What happens when we have quantum computing? When the business changes, it can suddenly make that land use surplus,” Yan explains.

Telus responds to concerns

In response to Maloney’s proposed motion, Telus says it is committed to being a “transparent, responsible” partner and argued its two proposed projects would provide significant economic and environmental benefits.

A spokesperson told CTV News that both facilities are designed to capture and reuse waste heat, minimize noise pollution, and reduce typical water consumption by 90 per cent by tapping into recycled water from BC Place.

Telus anticipates the construction of the data centres will create 1,000 jobs and deliver $9 billion in economic value to the province once complete.

“Beyond direct jobs, this infrastructure is designed to keep Canadian talent, data and dollars in Canada, keeping economic activity circulating in our communities and generating tax revenue for British Columbians,” the Telus spokesperson said.

More protests planned in Vancouver

Plans are already underway for two more protests against AI data centres in Vancouver this summer.

A group called No AI Vancouver has been spearheading demonstrations across the city since Telus’s projects were announced earlier this year. The first two events each drew hundreds of attendees, and a third is planned for July 26.

The group is also behind a petition to the federal government, calling for a moratorium-style approach to AI data-centre development until projects undergo transparent community scrutiny, alongside stronger regulation of AI technologies and a review of their social and environmental impacts.