Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within Canadian borders. The new framework will evaluate data center approvals based on three main pillars: economic development, data protection and sovereignty, and community investment and public confidence.
During the announcement in Guelph, Ford highlighted that the government’s objective with the new data center playbook is to foster the economy of the future. The framework aims to spur billions in economic growth, boost tax revenues, create numerous job opportunities, and ensure data centers operate in compliance with regulations.
One key aspect of the framework is that data centers will be required to cover the full cost of their electricity usage. This initiative aims to encourage projects to develop their own power generation sources and establish a distinct rate class for large new data centers, which will have higher rates than existing industrial rate programs for major electricity users.
Moreover, the province emphasized that it will not provide financial incentives to attract investments. The framework is positioned as a crucial facilitator of the province’s artificial intelligence (AI) strategy, projected to bring about significant economic growth and the creation of thousands of new jobs annually by 2035.
The announcement comes amid deliberations by municipalities across Ontario regarding moratoriums on data centers. For instance, Oakville recently enacted a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner has advocated for a pause on new data centers, expressing concerns about corporations benefiting from local resources at the expense of communities. The group Wellington Water Watchers echoed these concerns, highlighting the significant land, energy, and water requirements of data center infrastructures.
In response to these concerns, Ontario’s economic development minister, Vic Fedeli, emphasized the province’s commitment to prioritizing data centers that use closed-loop systems to minimize water consumption. A closed-loop system, akin to a car radiator, reuses water to reduce overall usage.
Although Premier Ford stressed the importance of data centers for various sectors, including healthcare and businesses, Schreiner criticized the new playbook, noting the lack of specific regulations to enforce sustainable practices. The Green Party leader called for stringent regulations to protect communities and ensure sustainable development.
Looking ahead, Waterloo region is examining the local impacts of data centers. Coun. Colleen James has proposed a motion to prepare an information report for the Region of Waterloo council to understand the development, economic, and environmental implications of data centers better. The report is expected to be finalized by early next year.