Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing the importance of safeguarding Canadian data within the country. The framework is built upon three core principles: promoting economic growth, ensuring data security and sovereignty, and investing in communities to enhance public trust.
During the announcement in Guelph, Ford expressed that the government’s objective through the new data center playbook is to foster economic advancement, generate substantial growth, boost tax revenues, and create numerous job opportunities while ensuring compliance with regulations.
One key aspect of the framework is that data centers will be required to fully cover their electricity consumption costs, encouraging the development of self-sustaining power generation projects. Additionally, a distinct rate class for large new data centers will be established, set higher than existing industrial rate programs to prevent passing on costs to Ontario residents.
Ford emphasized that financial incentives will not be provided to attract investments, underlining the province’s commitment to self-sustained growth. The framework is positioned as a crucial driver of Ontario’s artificial intelligence (AI) strategy, aiming to yield significant economic benefits, including an estimated $122 billion in economic growth by 2035 and the creation of 17,000 new jobs annually.
This announcement comes amidst deliberations in various municipalities across the province regarding moratoriums on data centers, with Oakville recently enacting 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 data center approvals, expressing concerns about the impact on local communities. The push for a moratorium is supported by Ilham Abdulkadir from Wellington Water Watchers, highlighting the environmental impact and resource consumption associated with data center infrastructure.
In response to these concerns, Ontario’s Minister of Economic Development, Vic Fedeli, emphasized the importance of prioritizing data centers with closed-loop systems that minimize water consumption. Ford echoed this sentiment, emphasizing the government’s focus on prioritizing builds that utilize closed-loop systems to operate efficiently.
While recognizing the significance of data centers in the future, Schreiner criticized the playbook for lacking specific regulations to address environmental concerns. The Ontario Greens are advocating for stronger regulations to protect communities from the potential negative impacts of data centers.
In a bid to address concerns and ensure transparency, Counselor Colleen James in the Waterloo region tabled a motion requesting an information report to educate elected officials on the development and impacts of data centers. The report is expected to be completed by early next year.
The province’s new data center framework marks a significant step towards fostering responsible and sustainable growth in Ontario’s digital infrastructure landscape.