Ontario Premier Doug Ford has unveiled the province’s new strategy for data centers, emphasizing the importance of keeping Canadians’ data within Canada. The framework for data center approvals is based on three core principles: fostering economic development, ensuring data protection and sovereignty, and promoting community investment and public trust.
During the announcement in Guelph, Ford highlighted that the government’s new data center playbook aims to bolster the economy by generating significant economic growth, increasing tax revenues, and creating numerous job opportunities. The framework mandates that data centers cover the full costs of their electricity consumption, encouraging projects to develop their power generation and establishing a distinct rate class for large data centers, ensuring no additional costs are burdened on Ontario families.
Ford also emphasized that the province will not provide financial incentives to attract investments. The framework is expected to play a pivotal role in advancing Ontario’s artificial intelligence (AI) strategy, projecting substantial economic growth of $122 billion by 2035 and the annual creation of 17,000 new jobs.
The announcement coincides with deliberations in various municipalities across the province regarding moratoriums on data centers, with Oakville recently enacting a one-year moratorium and Mississauga set to vote on its own in September.
The Green Party of Ontario has expressed concerns about the new data center playbook, with leader Mike Schreiner calling for a pause on data centers. Schreiner highlighted issues surrounding the use of local resources by corporations and emphasized the significant environmental impact of data center infrastructure.
The province’s Minister of Economic Development, Vic Fedeli, assured that priority would be given to data centers implementing a closed-loop system, similar to a car radiator, to reduce water consumption. Ford echoed this sentiment, emphasizing the importance of prioritizing data centers with closed-loop systems that minimize water usage during operations.
Despite Ford’s reassurances, Schreiner criticized the playbook for lacking specific regulations to ensure environmental protections. The Ontario Greens advocate for a moratorium on new data centers until robust regulations are in place to safeguard communities from potential negative impacts.
Waterloo region is also examining the local implications of data center development, with efforts underway to assess the economic and environmental effects of data centers. Coun. Colleen James proposed a motion to prepare an information report for the Region of Waterloo council, aiming to provide insights into data center development and its impacts on the region.
The report, expected to be completed early next year, will offer valuable information to elected officials to address the growing presence of data centers and their associated challenges within the community.