Mystery mega-project in Waterloo region sparks new concerns

National Observer

2 days ago

The fight to save hundreds of acres of prime farmland in Wilmot Township has taken a new turn with news that a Quebec-based artificial intelligence company is considering the area for a large data centre.
Martin Bouchard, chief executive officer and co-founder of QScale, confirmed to Canada's National Observer the company is evaluating several expansion opportunities in Ontario, with Wilmot Township among the shortlisted sites for a data centre.
'We believe data centres are essential for driving Canadian innovation and ensuring sovereign AI capabilities,' Bouchard said in an email response. 'At QScale, sustainability is a core value, and our facilities are at the forefront of it.'
Kevin Thomason, an advocate with Fight for Farmland — a group representing residents and landowners opposed to the project — says placing a massive data centre on prime farmland in an aquifer recharge area with limited infrastructure is 'a plan destined to fail.' The project, at the site about 120 kilometres west of Toronto, will wipe out 310 hectares of some of Ontario's best farmland.
'A massive data centre would be one of the absolute worst things for our community,' he added.
Thomason warned the project could bring little local benefit while permanently destroying productive farmland. He said the existing farms likely employ more people than a data centre would, and the environmental toll could be significant in an area already struggling with water capacity issues.
For more than a year, local farmers and advocates have been fighting to stop what was until now a secret industrial project planned by the Region of Waterloo.
Experts warn of farm impacts
University of Toronto professor and AI researcher Ebrahim Bagheri says there are benefits to having more computing power in Canada, such as boosting data security and helping local AI companies. But he warns a rural location brings real risks.
'Converting 300 hectares of farmland will inevitably alter established agricultural operations, changing access routes, disrupting farm logistics and shifting how surrounding land is used,' Bagheri said. 'Constant industrial noise from cooling systems and backup generators, often operating day and night, can cause stress responses in livestock, affecting feeding, resting and reproductive cycles.'
Bright lighting from the facility could also fill dark rural nights with an industrial glow, disrupting both wildlife and farm operations, he added.
Some rural communities say data centres glow at night, changing the character of the area, and bring constant low-frequency noise from cooling fans. In rural Virginia, they've faced pushback over noise, light pollution, loss of farmland and the clearing of wildlife habitats.
Bagheri says depending on the cooling system, water use could be massive — millions of litres a day for a large facility. Even more efficient designs still require significant water, potentially competing with farms during dry spells.
The project would need huge amounts of power and its emissions would depend on sourcing clean energy and committing to 24/7 low-carbon operation, he added.
For more than a year, local farmers and advocates have been fighting to stop what was until now a secret industrial project planned by the Region of Waterloo.
The Region of Waterloo and Wilmot Township did not respond to a request for comment in time for publication.
On its website, the region says only that the land assembly is meant to create a 'shovel-ready site' to attract a major employer and secure long-term jobs and investment.
In terms of economic benefit, Bagheri said a large-scale data centre in the region could generate thousands of construction hours in trades such as electrical, plumbing and steelwork, while creating demand for specialized suppliers. Once operating, it could help AI startups and manufacturers run advanced projects closer to home.
More domestic infrastructure would reduce reliance on foreign providers, keep sensitive data under Canadian control and give local researchers, startups and industry faster — and potentially cheaper — access to high-performance computing, he added.
Ontario is already home to more than 100 data centres. Canada ranks in the global top 10 data centre markets and spending on servers here is expected to grow 66 per cent by 2029. Worldwide, the industry is booming, with construction expected to reach $49 billion by 2030.
How much land is really needed?
John Straube, an associate professor in the Faculty of Engineering at the University of Waterloo, says that while little is known about the proposed data centre, mid-sized data centres typically need five to 25 acres, with even the largest rarely exceeding 200 acres.
He said the key requirements are reliable electricity and high-speed data connections, saying that many modern data centre facilities use air-based cooling systems that require no water.
Given QScale's interest, he said it's likely the company has already confirmed that power and data connections are available in the region. 'It is entirely plausible that for a normal data centre the road, power and data infrastructure is readily available — in fact, this is one reason Waterloo Region would be on the list of possible sites,' Straube said.
The bigger picture: farmland loss
Ontario Green Party Leader Mike Schreiner says the Wilmot project is part of a larger problem, as the province is losing more than 300 acres of farmland every day to development, threatening Ontario's $51-billion agri-food economy and food security.
'Greens aren't opposed to economic development. What we are opposed to is the expropriation of 770 acres of prime farmland that puts farmers and their livelihoods at risk,' Schreiner said. 'We will continue supporting farmers who are standing up to protect prime farmland in Wilmot and across Ontario.'