Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing its focus on keeping Canadians’ data within the country. The new framework is built on three core principles: economic development, data protection and sovereignty, and community investment and public trust.
Ford, speaking in Guelph during the announcement, highlighted that the government’s approach, outlined in the data center playbook, aims to drive future economic growth, boost tax revenues, create numerous job opportunities, and ensure compliance with regulations.
Under the framework, data centers will be required to cover their entire electricity consumption costs, encouraging the development of self-owned power generation projects. Additionally, a distinct rate category will be established for large new data centers, set higher than existing industrial rate programs, without burdening Ontario families with extra costs.
Furthermore, the province clarified that it 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, forecasted to yield substantial economic growth of $122 billion by 2035 and generate 17,000 new jobs annually.
The announcement comes amid ongoing discussions in various municipalities across the province regarding moratoriums on data centers. Oakville recently imposed a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner recently called for a pause on data center approvals, expressing concerns about the impact on local water resources and communities. The importance of implementing closed-loop systems in data centers, which significantly reduce water consumption, was emphasized by Vic Fedeli, Ontario’s minister of economic development.
While acknowledging the significance of data centers for the future, Schreiner stressed the need for strong regulations to protect communities and ensure local control over such developments. The opposition has called for a moratorium until robust safeguards are in place.
In response, Ford reiterated the importance of data centers for various sectors, including healthcare and businesses, emphasizing the need for a balanced approach to address concerns while leveraging the benefits of technological advancements.
Waterloo region has also been assessing the local impact of data centers, with Coun. Colleen James requesting an information report to inform elected officials about the economic and environmental implications of data center expansions. The report is anticipated to be finalized by early next year.