Ontario Premier Doug Ford unveiled the province’s new data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within Canada. The framework assesses data center approvals based on three core pillars: economic development, data protection and sovereignty, and community investment and public confidence.
During the announcement in Guelph, Ford expressed 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 entirety of their electricity consumption costs, encouraging projects to develop their own power generation capabilities. Additionally, a separate rate class with higher rates than existing industrial programs will be set up for large new data centers, ensuring that costs are not transferred to Ontario families.
Ford affirmed that the province will not provide financial incentives to attract investments. The framework is positioned as a crucial facilitator of Ontario’s artificial intelligence (AI) strategy, projected to yield significant economic growth of $122 billion by 2035 and create around 17,000 new jobs annually.
Amidst ongoing discussions in municipalities across the province regarding data center moratoriums, Oakville recently voted to enact a one-year moratorium, with Mississauga set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner recently called for a halt on data center approvals, citing concerns about corporate benefits overshadowing local communities’ interests. Schreiner’s stance was echoed by Ilham Abdulkadir from Wellington Water Watchers, highlighting the substantial land, energy, and water requirements of data center infrastructure.
In response to these concerns, Ontario’s Minister of Economic Development, Vic Fedeli, emphasized the priority for data centers to implement closed-loop systems to minimize water usage. A closed-loop system functions akin to a car radiator, recycling water to reduce consumption. Ford reiterated this directive, emphasizing the government’s preference for builds incorporating closed-loop systems with minimal water usage.
Schreiner voiced disappointment in the new playbook, noting the lack of specific regulations to enforce sustainable practices. The Ontario Greens advocate for a moratorium on new data centers until stringent regulations safeguarding communities are implemented.
While acknowledging the significance of data protection and acknowledging the inevitability of data centers in the future, Schreiner stressed the importance of community control over tech corporations. The Ontario Greens plan to persist in their call for a moratorium until robust regulations are in place to shield communities from potential data center impacts.
Waterloo region has also initiated discussions regarding the local impacts of data centers, with Coun. Colleen James proposing an information report for the Region of Waterloo council to educate officials on the development, economic, and environmental implications of data centers. This report is slated for completion early next year.