Ontario AI data-centre moratorium bill raises stakes for Treaty 3 proposals

QUEEN’S PARK — A private member’s bill proposing a provincewide pause on new or expanded artificial-intelligence data centres passed first reading Tuesday, putting a new policy question in front of Northwestern Ontario communities studying Indigenous-led digital infrastructure.

Bill 146, introduced by Green MPPs Mike Schreiner and Aislinn Clancy, would prohibit construction or increased computing capacity at AI data centres until a proposed advisory council decides Ontario has adequate safeguards. It was ordered for second reading, but no debate date is listed.

The bill would require rules aimed at protecting water for drinking and agriculture, preventing higher utility bills, limiting electricity use, noise and emissions, requiring local watershed assessments and giving affected communities approval powers. It would also require binding community-benefit agreements and Canadian control of centres and their data.

The proposal has a direct regional angle. Wabigoon Lake Ojibway Nation received $183,060 from FedNor in 2025 for a pre-feasibility study into a possible data centre, an opportunity identified in the Nation’s economic-development strategy. The Independent Electricity System Operator also lists a Grand Council Treaty #3 feasibility assessment for a proposed 100-megawatt energy and data-centre initiative among recently funded Indigenous energy projects.

Bill 146 has not become law and does not stop either study. Its final scope could change during legislative debate and committee review.

Ontario is pursuing a different framework. The government’s draft Data Centre Playbook says projects should advance economic development, protect digital sovereignty and provide host-community benefits. It also proposes a separate electricity rate for large new data centres and says projects should meet provincial water and noise standards, with a preference for closed-loop cooling systems.

The province said in August that it wants data centres to pay the full cost of their electricity-system impact. The government has not posted a response specific to Bill 146 on the bill’s legislative page.

TAGS: Bill 146, AI data centres, Wabigoon Lake Ojibway Nation, Grand Council Treaty 3, Northwestern Ontario, digital sovereignty, water protection

META: Ontario’s proposed AI data-centre moratorium could shape Indigenous-led digital infrastructure studies in Treaty 3 territory.