Ontario Premier Doug Ford unveiled the province’s fresh data center strategy on Thursday, emphasizing the importance of keeping Canadians’ data within Canada. The framework for data center approvals focuses on three main aspects: economic development, data security and sovereignty, and community investment and public trust.
During the announcement in Guelph, Ford highlighted that the new data center playbook aims to drive the economy forward, leading to substantial economic growth, increased tax revenues, and the creation of numerous job opportunities. The framework mandates that data centers cover the full cost of their electricity consumption, promoting self-power generation projects and setting a higher rate class for large new data centers compared to existing industrial rate programs.
Additionally, Ford emphasized that the province will not provide financial incentives to attract investments. The framework is set to play a crucial role in advancing Ontario’s artificial intelligence (AI) strategy, with anticipated economic benefits of $122 billion in growth by 2035 and the generation of 17,000 new jobs annually.
The announcement coincides with discussions in various municipalities across the province regarding moratoriums on data centers, with Oakville recently voting for a one-year moratorium and Mississauga set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner and Ilham Abdulkadir from Wellington Water Watchers have raised concerns about the environmental impact of data centers, emphasizing the need for sustainable practices. Vic Fedeli, Ontario’s minister of economic development, assured that priority will be given to data centers employing closed-loop systems to minimize water consumption.
While Ford defended the importance of data centers for various sectors, Schreiner expressed disappointment with the new playbook, urging for stronger regulations to protect communities and the environment. The Green Party continues to call for a moratorium on new data centers until robust regulations are in place.
Furthermore, Waterloo region is also examining the local impacts of data centers, with Coun. Colleen James tabling a motion for an information report to educate officials on the development and effects of data centers. The report is expected to be finalized early next year.