Ontario Premier Doug Ford unveiled the province’s new data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework is built on three main pillars: economic development, data protection and sovereignty, and community investment along with public confidence.
Ford, speaking in Guelph during the announcement, highlighted that the new data center playbook aims to foster the economy of the future, generating substantial economic growth, boosting tax revenues, and creating numerous job opportunities. The framework mandates that data centers cover the full cost of their electricity consumption, encouraging them to develop their own power generation systems. Additionally, it establishes a distinct rate class for large new data centers, ensuring they pay higher rates than existing industrial rate programs, without passing on costs to Ontario families.
The province clarified that no financial incentives will be provided to attract investments, underlining that the framework will play a crucial role in supporting its artificial intelligence (AI) strategy. This strategy is projected to bring about significant economic benefits, including an estimated $122 billion in economic growth by 2035 and the annual creation of 17,000 new jobs.
Meanwhile, municipalities across Ontario are deliberating on imposing moratoriums on data centers, with Oakville recently voting to enact a one-year moratorium and Mississauga set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner has called for a pause on new data centers, expressing concerns about corporations benefiting from local resources at the expense of communities. Emphasizing the environmental impact, Ilham Abdulkadir from Wellington Water Watchers highlighted the substantial land, energy, and water requirements of data center infrastructure.
In response to such concerns, Ontario’s Minister of Economic Development, Vic Fedeli, emphasized the importance of prioritizing data centers with closed-loop systems, which recycle water to reduce consumption. Ford echoed this sentiment, stressing the government’s focus on promoting builds with closed-loop systems that minimize water usage.
While recognizing the significance of data protection and acknowledging the inevitability of data centers in the future, Schreiner emphasized the need for strong regulations to ensure community control and protection from potential negative impacts. The Green Party continues to advocate for a moratorium until stringent regulations safeguarding people and communities are in place.
In a related development, Coun. Colleen James tabled a motion earlier this week asking staff to prepare an information report for the Region of Waterloo council. The report aims to educate elected officials on the development, economic implications, and environmental impacts of data centers, reflecting the growing importance of understanding and addressing the local impacts of such facilities.