Algoma Steel and Red Jar Energy Partners are planning a 400MW AI data center in Algoma, Ontario, Canada.

Last week, local news outlets published statements from the two companies confirming a proposal for the data center in the city of Sault Ste. Marie, with an operational date of October 1, 2029, though no firm commitments have been made.

Ron Dizy, managing director of Red Jar, said the companies were attempting to secure an early position in the Independent Electricity System Operator queue to allow for an early technical assessment of any potential project.

He said the project would be subject to local approval processes, including the recently published Ontario Data Center Playbook, which sets out strategic priorities for the government in approving data center proposals in the region.

However, statements from company executives made clear that, as the guidelines are yet to be finalized, the companies do not know which specific approval processes would apply to future projects.

Potentially throwing a spanner in the works for Algoma Steel and Red Jar Energy Partners, on Monday, The Sault Star reported that Sault Ste. Marie’s city council passed a motion to prepare an interim control bylaw creating a moratorium on data centers until a data center framework is created.

Algoma Steel, founded in 1901, is an integrated primary steel producer based in Sault Ste. Marie. Laura Devoni, its vice president of human resources and corporate affairs, said the city is home to the company’s employees, families, and community stakeholders.

“Algoma Steel has shared this city’s resources for more than a century,” she said. “We recognize the community interest in data center development and the important questions regarding electricity requirements, infrastructure, environmental impacts, and the potential benefits to Sault Ste. Marie and the surrounding region.”

Based in Ontario, Red Jar Energy Partners develops energy and environmental infrastructure projects.

In 2021, the company developed and built a 100,000 sq ft (9,300 sqm) data center facility for mining operations. This facility was sold in 2024.