Ontario Premier Doug Ford unveiled the province’s latest data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework assesses data center approvals based on three core principles: economic development, data protection and sovereignty, and community investment and public confidence.
During the announcement in Guelph, Ford highlighted that the new data center playbook aims to foster the economy of the future by driving substantial economic growth, boosting tax revenues, and generating numerous job opportunities. The framework mandates that data centers bear the full cost of their electricity consumption, encouraging them to develop their power generation and establishing a distinct rate category for large new data centers, ensuring no additional burden on Ontario families.
Ford affirmed that the province will not incentivize financial investments to attract projects. The framework is projected to play a pivotal role in supporting Ontario’s artificial intelligence (AI) strategy, anticipated to deliver significant economic gains, including $122 billion in economic expansion by 2035 and the annual creation of 17,000 new jobs.
The announcement coincides with ongoing discussions in municipalities across the province regarding moratoriums on data centers, with Oakville recently voting for a one-year pause and Mississauga set to vote on a similar moratorium next month.
Green Party of Ontario leader Mike Schreiner recently called for a halt on new data centers, expressing concerns about the environmental impact and corporate benefits over community interests. He was joined by Ilham Abdulkadir from Wellington Water Watchers, highlighting the substantial water and energy demands of data centers.
In response, Ontario’s Minister of Economic Development, Vic Fedeli, emphasized prioritizing data centers with closed-loop water systems to minimize water consumption. Ford echoed this sentiment, emphasizing the government’s focus on supporting builds with environmentally friendly water systems.
While acknowledging the importance of data centers in the future, Schreiner criticized the new playbook for lacking specific regulations to safeguard communities and the environment. He reiterated the Ontario Greens’ call for a moratorium until robust protections are in place.
Looking ahead, Coun. Colleen James tabled a motion to gather information on the development and impacts of data centers in the Region of Waterloo, recognizing the significance of understanding the economic and environmental implications of data center expansion. The report is slated for completion early next year.
