Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing its aim to safeguard Canadians’ data within the country. The framework’s approval criteria revolve around three main pillars: economic development, data protection and sovereignty, and community investment along with public trust.
Ford, speaking in Guelph during the announcement, highlighted that the new data center playbook crafted by the government aims to foster the economy’s advancement. This initiative is anticipated to spur substantial economic growth, boost tax revenues, and generate numerous employment opportunities while ensuring compliance with regulations by data centers.
Under the framework, data centers will be required to cover the entirety of their electricity consumption costs. This strategy aims to motivate projects to establish their power generation sources and introduce a distinct rate category for large new data centers, which will surpass the existing industrial rate schemes for significant electricity consumers. This move is designed to prevent additional costs from being transferred to Ontario households.
In addition, Ford stated that the province will refrain from providing financial incentives to attract investments. The government emphasized that the framework will play a crucial role in facilitating its artificial intelligence (AI) strategy, anticipated to yield economic benefits amounting to $122 billion in economic growth by 2035 and the creation of 17,000 new job opportunities annually.
The announcement coincides with ongoing deliberations in municipalities across the province regarding moratoriums on data centers. Oakville recently voted to implement a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Meanwhile, the Green Party of Ontario has expressed reservations about the playbook, advocating for a pause on data center approvals. Concerns have been raised about the environmental impact of data centers, particularly their substantial water consumption. The party has called for stronger regulations, including mandatory closed-loop water systems, before approving new data centers in the province.
Ontario’s Economic Development Minister, Vic Fedeli, affirmed the government’s commitment to giving priority to data centers that employ closed-loop systems, which significantly reduce water consumption. Despite differing views on the playbook, both government officials and critics acknowledge the inevitable role of data centers in the future, highlighting the need for stringent regulations to safeguard communities and the environment.