See my official statements on key policy and community issues here.

What We Heard at Tuesday’s STACK Data Centre Meeting—and What Happens Next

Dear neighbours,

Thank you to the more than 100 residents who attended our community meeting about the proposed STACK Infrastructure expansion at 3650 Danforth Avenue.

Residents raised thoughtful questions about the project’s scale, electricity and water use, noise, backup generators, employment, community benefits and the City’s approval process.

I have asked the company to participate in a separate public session where residents can put their questions directly to its representatives.

I am grateful to city staff for attending and helping explain both the application and the City’s broader policy work.

Here is what we heard, what we currently understand and what still requires clarification.

What is STACK proposing?

STACK currently operates an approximately 8 MW data centre in the existing building at 3650 Danforth Avenue.

The proposal would add two new buildings, each with approximately 24 MW of critical IT capacity. This could bring the full campus—known as TOR01—to as much as 56 MW across approximately 19 acres.

STACK operates the buildings, power, cooling and security. Other companies may lease space or computing capacity within the campus. It has not been publicly disclosed who would use the proposed new capacity or what activities would take place within it.

Why isn’t the City Council voting on this?

Because data-centre use is already permitted under the site’s zoning, the application is being reviewed through Site Plan Approval rather than a rezoning.

Under Ontario’s current planning framework, Site Plan Approval is a delegated technical review. It does not require a public meeting or a vote of City Council, and the approval decision rests with City staff.

Through this process, staff can review matters such as:

• access and servicing;
• parking and loading;
• stormwater management;
• landscaping and waste storage;
• aspects of exterior design;
• safety and accessibility; and
• protection of neighbouring properties.

However, Site Plan Approval is not designed to provide a broader public debate about whether Toronto should host a data centre of this scale or what benefits should be expected in return.

I believe projects of this magnitude should involve earlier notice, clearer public information and more meaningful community participation.

What about electricity costs?

STACK says it will pay for the electrical upgrades required under its agreements with Toronto Hydro.

Residents understandably want more detail about what that commitment covers. Important questions include:

• what upgrades the campus would require;
• which costs would be paid directly by STACK;
• whether any broader system costs could affect the electricity system;
• how much capacity has been requested; and
• whether the facility could reduce its demand when the grid is under strain.

My office is seeking clearer written information on these issues.

What about water, generators and noise?

STACK says the campus would use closed-loop cooling, place limited demand on Toronto’s municipal water system and produce wastewater comparable to a commercial office building.

These are the company’s descriptions. Residents have reasonably asked to see more detailed information about annual and peak water requirements and how those figures have been assessed.

Residents also raised questions about:

• the number and capacity of backup generators;
• the fuel they would use;
• emissions controls;
• testing and operating schedules;
• whether generators could operate for purposes other than emergencies; and
• how noise would be monitored after construction.

STACK says the design includes low-noise cooling equipment, sound-attenuation measures and equipment placement intended to reduce impacts. Residents living nearby are understandably concerned not only about loud sounds, but also continuous or low-frequency humming.

My office is seeking more complete information about these impacts and the technical review being undertaken.

How many jobs would the project create?

STACK estimates that the completed campus would support approximately 30 permanent positions, in addition to temporary construction employment.

Residents raised fair questions about whether that level of employment and the other benefits being discussed are proportionate to the size of the site, the electricity required and the infrastructure needed to support the campus.

We also need a clearer understanding of:

• how many Canadian positions would be directly employed by STACK;
• how many would be contracted roles;
• what types of jobs would be created; and
• whether there would be commitments related to local hiring or community benefits.

Why does American ownership matter?

Foreign ownership does not automatically make a project unacceptable, nor does it establish that Canadian data would be mishandled.

However, STACK is a U.S.-based company owned by an American asset manager. That raises broader questions about who ultimately owns, controls and benefits from infrastructure located in Canada.

Canada’s National AI Strategy emphasizes the importance of Canadians having a meaningful degree of sovereign control over critical AI infrastructure.

That leads to several questions that remain unanswered publicly:

• Who would lease and use the proposed capacity?
• Who would own and control the computing equipment?
• Where would data, backups and management systems be located?
• Would Canadian institutions or businesses have guaranteed access?
• What benefits would be secured for Scarborough, Toronto and Canada?

A data centre located in Canada is not necessarily the same thing as Canadian-controlled infrastructure. At this stage, the project’s contribution to Canadian data sovereignty has not been clearly established.

Can the application be slowed or stopped?

I want to be direct: no individual councillor can unilaterally reject this application.

However, Council has directed City staff to develop a Toronto-specific approach to projects of this kind. We are now considering a proposal while that broader policy work remains underway.

I believe it is reasonable to ask whether the application can or should be slowed while important questions about environmental impacts, electricity connections, public consultation, community benefits and data sovereignty are addressed.

My office is in active communication with City staff and is examining the options available. I do not want to overstate what can be achieved before that work is complete, but I am committed to ensuring that residents’ concerns are clearly represented and that the application receives appropriate scrutiny.

What is the City doing more broadly?

In March, Council directed the Chief Planner and other City officials to review Toronto’s approach to AI data centres, including questions related to:

• land-use compatibility;
• zoning;
• electricity-grid capacity;
• water use;
• climate and environmental impacts; and
• the cumulative effects of future development.

City staff are expected to report to the Planning and Housing Committee in the first half of 2027.

My office is seeking clarification about the scope and timing of that work, opportunities for residents to participate, and whether any resulting recommendations could meaningfully apply to TOR01.

What happens next?

My office will continue to:

• seek clearer information from STACK, City staff and the relevant public agencies;
• request a separate public session attended by STACK representatives;
• examine what options remain available through the City’s approval and policy processes; and
• provide updates as more information becomes available.

Residents who would like to submit additional questions or be included in future updates can contact: Councillor_Kandavel@toronto.ca

Thank you again for participating. Residents deserve to know what is being proposed in their neighbourhood and to have their concerns considered before major decisions are finalized.

Sincerely,

Councillor Parthi Kandavel
Scarborough Southwest