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 evaluates data center approvals based on three main pillars: economic development, data protection and sovereignty, and community investment and public confidence.
During the announcement in Guelph, Ford stated, “Our government’s new data center playbook aims to propel the economy forward, fostering billions in economic growth, boosting tax revenues, and generating thousands of new jobs, all while ensuring compliance with regulations.”
The framework dictates that data centers must cover their entire electricity usage costs, encouraging them to construct their own power generation facilities and instituting a distinct rate category for large new data centers that is higher than the current industrial rate programs for major electricity consumers, with no additional burden on Ontario families.
Ford also emphasized that the province will not provide financial incentives to attract investments. The province highlighted that the framework will play a pivotal role in supporting its artificial intelligence (AI) strategy, projected to yield economic benefits amounting to $122 billion by 2035 and create 17,000 new jobs annually.
This announcement coincides with various municipalities in the province deliberating on moratoriums on data centers, with Oakville recently enacting a one-year moratorium and Mississauga set to vote on its own moratorium in September.
Meanwhile, the Green Party of Ontario expressed concerns about the new playbook, with leader Mike Schreiner advocating for a pause on data center approvals. Schreiner and Ilham Abdulkadir from the Wellington Water Watchers highlighted the significant water and energy consumption associated with data center infrastructure.
In response, Ontario’s Minister of Economic Development, Vic Fedeli, assured that the province would prioritize data centers utilizing closed-loop systems to minimize water usage. Ford echoed this sentiment, indicating a preference for data center builds incorporating closed-loop systems with minimal water consumption.
Schreiner criticized the playbook for lacking specific regulations, emphasizing the need for stronger protections before approving new data centers. He acknowledged the importance of data centers in the future but stressed the importance of community control over tech corporations.
Looking ahead, Waterloo region is examining the local impacts of data center development, with Coun. Colleen James initiating a report to inform elected officials about the economic and environmental implications of data centers. The report is expected to be finalized early next year.
Overall, the province’s new data center framework aims to balance economic growth and job creation with environmental and community considerations, addressing concerns raised by various stakeholders across Ontario.