Google's urban-innovation offshoot also said 40 percent of residential units in its Quayside development will be priced at below-market rates, but a housing expert said that won't solve Toronto's housing problems.

Ann Cavoukian, one of the world's leading privacy experts, resigned from the smart city project last week over concerns that some data collected by sensors without permission could be linked back to individuals.

The technology partner for the smart city project has been quiet on data storage and privacy issues in the past.

We now know the kind of wood that will be used, but officials are still staying quiet on how the neighborhood will collect and use data.

The group released an updated development plan earlier this week that reveals a much smaller development area than what was originally sought.

Groundbreaking developments near Toronto, Boston and Phoenix are revealing early challenges around data privacy, social stewardship, and understanding the intangible qualities that entice people to move to a new city.

21 smart communities to watch in 2018

The new smart city district is 800 acres and will be built from the ground up with emerging technologies.