Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework, consisting of three main pillars – economic development, data protection and sovereignty, and community investment and public confidence, will guide data center approvals.
During the announcement in Guelph, Ford highlighted that the new data center playbook aims to propel the economy forward, generating substantial economic growth, increased tax revenues, and numerous job opportunities. The framework ensures that data centers cover their entire electricity usage costs, encouraging self-generated power projects and establishing a separate rate class for large new data centers, distinct from existing industrial rate programs.
Ford also mentioned that the province will not provide financial incentives to attract investments. The framework is expected to play a crucial role in Ontario’s artificial intelligence (AI) strategy, projecting significant economic benefits such as $122 billion in economic growth by 2035 and the creation of 17,000 new jobs annually.
This development comes as various municipalities in the province ponder imposing moratoriums on data centers. For instance, Oakville recently voted to enforce a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner recently called for a pause on data centers, expressing concerns about corporations benefiting from local resources at the expense of communities. A member of the Wellington Water Watchers group, Ilham Abdulkadir, echoed these concerns, emphasizing the significant land, energy, and water requirements of data center infrastructure.
In response to these concerns, Ontario’s Minister of Economic Development, Vic Fedeli, emphasized prioritizing data centers with closed-loop systems, akin to car radiators that reuse water to minimize consumption. Ford supported this approach, emphasizing the government’s priority on constructing data centers with closed-loop systems to minimize water usage.
Despite the government’s efforts, Schreiner criticized the playbook for lacking specific regulations to protect communities adequately. He stressed the importance of ensuring community control over data centers, rather than allowing tech giants to dominate.
In another development, Coun. Colleen James in the Waterloo region tabled a motion to prepare an information report for the Region of Waterloo council to understand the development, economic, and environmental impacts of data centers. The report is expected to be completed by early next year.