Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing the preservation of Canadians’ data within the country. The framework evaluates data center approvals based on three core principles: economic advancement, data security and sovereignty, and community investment alongside public trust.
During the announcement in Guelph, Ford expressed that the new data center playbook aims to foster the economy of the future, fostering substantial economic growth, boosting tax revenues, and generating numerous job opportunities. The framework mandates that data centers cover the entirety of their electricity consumption costs, promoting projects to develop their power generation sources. It also establishes a distinct rate category for large new data centers, ensuring their electricity charges are higher than those of existing industrial users, with no additional costs passed on to Ontario residents.
Ford emphasized that the province will not provide financial incentives to attract investments. The government outlined that the framework will play a vital role in facilitating its artificial intelligence (AI) strategy, anticipated to yield significant economic growth of $122 billion by 2035 and create 17,000 new jobs annually.
This announcement coincides with ongoing deliberations in municipalities across the province regarding moratoriums on data centers. Oakville recently voted to impose 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 halt on new data centers, expressing concerns about corporations benefiting from local water resources at the expense of Ontario communities. Ilham Abdulkadir from the Wellington Water Watchers group echoed these sentiments, highlighting the substantial land, energy, and water requirements of data center infrastructure.
In response to environmental concerns, Ontario’s Minister of Economic Development, Vic Fedeli, assured that the province will prioritize data centers utilizing closed-loop systems, akin to a car radiator, to minimize water consumption during operations.
While acknowledging the importance of data protection and sovereignty, Schreiner emphasized the need for stringent regulations to ensure community welfare over corporate interests. He advocated for a moratorium on new data centers until robust safeguards are in place. The Green Party of Ontario intends to advocate for stronger regulations to shield communities from potential data center impacts.
Waterloo region is also examining the local implications of data center expansion. Coun. Colleen James tabled a motion for the Region of Waterloo council to prepare an information report on data center development and its economic and environmental consequences. The report, expected to be finalized early next year, aims to provide key insights to elected officials on the evolving landscape of data centers within the region.