Ontario Premier Doug Ford revealed the province’s new strategy for data centers on Thursday, emphasizing the importance of keeping Canadians’ data within Canada. The framework for data center approvals will focus on three main aspects: economic development, data protection and sovereignty, and community investment and public trust.
During the announcement in Guelph, Ford highlighted the significance of the new data center playbook in fostering economic growth, increasing tax revenues, and generating job opportunities while ensuring compliance with regulations.
Under the framework, data centers will be required to cover the full cost of their electricity consumption, promoting projects to establish their own power generation and introducing a separate rate class for large new data centers. This rate class will be higher than the existing industrial rate programs for significant electricity users, with no additional costs imposed on Ontario families.
Ford also emphasized that the province will not provide financial incentives to attract investments. The framework is expected to play a crucial role in supporting Ontario’s artificial intelligence (AI) strategy, projected to contribute to $122 billion in economic growth by 2035 and the annual creation of 17,000 new jobs.
The new framework announcement coincides with ongoing discussions in municipalities across the province regarding moratoriums on data centers. Oakville recently voted to implement a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner has called for a pause on data centers, expressing concerns about corporate benefits at the expense of local communities. The group Wellington Water Watchers echoed these concerns, emphasizing the significant land, energy, and water requirements of data center infrastructure.
In response, Ontario’s Minister of Economic Development, Vic Fedeli, highlighted the importance of prioritizing data centers that utilize closed-loop systems to reduce water consumption. This approach, akin to a car radiator system that recycles water, minimizes water usage during operations.
While Ford defended the importance of data centers for businesses and communities, Schreiner criticized the new playbook for lacking specific regulations, particularly on water usage. The Greens advocate for a moratorium on new data centers until robust regulations are in place to safeguard people and communities.
Looking ahead, Waterloo region is examining the local impacts of data centers, with Coun. Colleen James leading efforts to prepare an information report for the Region of Waterloo council. The report aims to educate elected officials on the development, economic, and environmental implications of data centers, with completion expected early next year.