Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework is built upon three key pillars: economic development, data protection and sovereignty, and community investment along with public confidence.
During the announcement in Guelph, Ford stated, “Our government is committed to shaping the future economy by fostering substantial economic growth, boosting tax revenues, creating numerous job opportunities, and ensuring that data centers comply with regulations through our new data center playbook.”
The province’s framework requires data centers to cover the entirety of their electricity consumption costs, encouraging projects to develop their own power sources. It also establishes a distinct rate class for large new data centers, which is higher than the existing industrial rate programs for major electricity users, ensuring that costs are not passed on to Ontario families.
Ford emphasized that the province will not provide financial incentives to attract investments. The framework is expected to play a crucial role in supporting the province’s artificial intelligence (AI) strategy, with projected economic benefits including $122 billion in growth by 2035 and the annual creation of 17,000 new jobs.
The announcement comes amidst deliberations in various municipalities across the province regarding moratoriums on data centers. Oakville recently voted to enact 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 halt on data center approvals, expressing concerns about the impact of data centers on local water resources and communities. He emphasized the need for strong regulations to protect communities from the influence of tech corporations.
In response, Ontario’s Minister of Economic Development, Vic Fedeli, highlighted the province’s commitment to prioritizing data centers that utilize closed-loop systems, which significantly reduce water consumption. Ford echoed this sentiment, emphasizing the importance of prioritizing data center builds that incorporate closed-loop systems with minimal water usage.
While recognizing the significance of data centers in the future, Schreiner stressed the need for community control and strong regulations to safeguard people from potential drawbacks associated with data centers. He reiterated the Green Party’s call for a moratorium until robust regulations are in place to protect communities.
Waterloo region has also been examining the local impacts of data center development, with Coun. Colleen James tabling a motion for a comprehensive information report to inform regional officials about the economic and environmental implications of data centers. The report is anticipated to be finalized early next year.