Ontario Premier Doug Ford unveiled the province’s fresh approach to data centers on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The new framework for data center approvals is built on three core principles: fostering economic growth, safeguarding data, sovereignty, and promoting community investment and public trust.
During the announcement in Guelph, Ford highlighted the significance of the new data center playbook in shaping a robust future economy that will spur billions in economic expansion, boost tax revenues, and generate numerous job opportunities. The framework mandates that data centers cover their entire electricity consumption costs, encouraging them to construct their power generation facilities. Additionally, a distinct rate class will be established for large new data centers, ensuring that the costs do not burden Ontario families.
Ford reiterated that the province will not provide financial incentives to attract investments. The government emphasized that the framework will act as a vital catalyst for its artificial intelligence (AI) strategy, projected to yield $122 billion in economic growth by 2035 and create 17,000 new jobs annually.
This development comes amid deliberations by municipalities across Ontario on imposing 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.
Green Party of Ontario leader Mike Schreiner recently called for a halt to new data center approvals, expressing concerns about the environmental impact and corporate benefits over local communities. The importance of implementing closed-loop water systems in data centers was underscored by Vic Fedeli, Ontario’s minister of economic development, as a means to reduce water consumption.
While the government’s playbook has been lauded, Schreiner and the Ontario Greens believe it falls short in providing specific regulations to protect communities from data centers’ adverse effects. They advocate for stronger regulations before approving new data center projects to ensure community welfare and control over technological developments.
Waterloo region is also examining the local impacts of data centers, with Coun. Colleen James requesting a report to inform officials about the economic and environmental implications of data center expansion. The report is anticipated to be finalized early next year.