Oakville Council approves Interim Control By-law to support further study related to data centres

At today’s Special Council meeting, Oakville Council passed an Interim Control By-law (ICBL) to temporarily restrict new development related to data centres, enterprise computing facilities and similar high-intensity digital processing facilities for a period of one year.

The ICBL will allow the Town to complete a review of its Official Plan policies and Zoning By-law regulations for these types of facilities. The study will consider potential issues related to noise, vibration, emissions and land use compatibility, as well as municipal responsibilities related to environmental sustainability, energy supply and affordability, water supply and other utility infrastructure. 

The Town has not received any formal applications for a data centre; however 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.

Today’s decision follows 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 in Oakville. 

Details on timelines and next steps will be provided as the work progresses.

Section 38 of the Planning Act enables municipalities to pass an Interim Control By-law (ICBL) for up to one year, with the ability to extend the by-law for a total period of up to two years from the date it was enacted, to complete a land use planning study and determine whether changes to the municipality’s planning framework are necessary.

The Town’s Official Plans set out policies on how Oakville plans to grow and accommodate new residents and jobs into communities.

For more information, visit the Data Centres page.

Quotes:

"In my time as your mayor, we have been guided by the precautionary principle, and that means acting now and not waiting. A data centre could happen anywhere in Town. There is no application before us, and this by-law gives us a good base from which to move forward in our research. We will continue to do what we have always done, which is protect our Town."
- Mayor Rob Burton

“Council took decisive action to make sure Oakville has the right safeguards in place before any proposals come forward. Data centres can have significant impacts on land use, infrastructure, energy and water, and we need to understand those implications fully. This one-year moratorium gives us the time to do the necessary work and ensure future decisions are made in the best interests of Oakville.” 
- Councillor Tom Adams