Ontario Premier Doug Ford unveiled the province’s fresh data center strategy on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework for data center approvals is based on three core principles: economic development, data protection, sovereignty, community investment, and public trust.
During the announcement in Guelph, Ford stated, “Our government is committed to fostering the economy of the future through our new data center playbook, which will drive significant economic growth, boost tax revenues, create numerous jobs, and ensure data centers adhere to regulations.”
The framework mandates that data centers cover the total cost of their electricity consumption, incentivizing projects to develop their own power generation. It also establishes a separate rate category for large new data centers, higher than existing industrial rate programs for major electricity users.
Ford emphasized that the province will not provide financial incentives to attract investments. The framework is poised to be a crucial element of Ontario’s artificial intelligence (AI) strategy, projected to deliver substantial economic growth, totaling $122 billion by 2035, and create 17,000 new jobs annually.
This announcement comes amid discussions in various municipalities across the province on implementing 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 impact of data centers on local resources, particularly water usage. Despite some criticisms, Vic Fedeli, Ontario’s minister of economic development, assured that priority would be given to data centers employing closed-loop systems to minimize water consumption.
However, Schreiner expressed that the new playbook “falls short” of stringent regulations needed to protect communities from potential risks associated with data centers. He emphasized the importance of community control over data centers, advocating for stronger regulations and calling for a moratorium until such measures are in place.
In response, Ford defended the necessity of data centers, highlighting their significance in modern society and the economy. He stressed the importance of educating the public about data centers and their integral role in various sectors.
Furthermore, Waterloo region is also examining the local impacts of data centers, with Coun. Colleen James requesting an information report to inform elected officials about the development, economic, and environmental impacts of data centers. The report is expected to be completed by early next year.