Terrace Moves to Tighten Data Centre Zoning: What BC Industrial Land Investors Should Watch
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On June 8, 2026, Terrace City Councillor James Cordeiro tabled a motion requesting staff report back on amending the zoning bylaw to define data centres separately from other industrial uses. The motion, seconded by Councillor Inder Dhillon and carried unanimously, comes as Vancouver-based entrepreneur Christopher Chong's Skeena Data Centre proposal for the Skeena Industrial Development Park near Terrace airport garners community scrutiny. Currently, data centres can locate in industrial zones without triggering public hearings, leaving council and residents with limited ability to influence outcomes or review environmental impacts.
The proposed zoning change would require site-specific council approval for data centres within urban industrial zones, creating a layer of municipal and public review that does not currently exist. Councillor Cordeiro emphasized the intent is not to judge AI ethics or specific projects, but to ensure transparency around impacts like noise, light pollution, and water demand. Mayor Sean Bujtas supported the proactive measure, noting that unlike vape shops—which the city cannot restrict despite overabundance—current policy leaves Terrace unable to screen data centre proposals or gather resident input before approval.
Bruce Wang Commentary
From a senior Greater Vancouver agent's perspective, Terrace's zoning review is a canary in the coal mine for industrial land strategy. We're seeing municipalities province-wide become more sophisticated about data centre externalities—water draw, grid load, and 24/7 operations. For clients holding industrial land, the play isn't to panic, but to audit which municipalities are still welcoming these uses versus those drafting restrictive bylaws. The winners will be sites with excess utility capacity in jurisdictions that haven't yet turned hostile. Watch for similar motions in Fraser Valley and Island communities; this is moving faster than most industrial investors realize.