Ontario Premier Doug Ford revealed the province’s latest data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework is centered on three key pillars: economic development, data protection and sovereignty, and community investment along with public confidence.
During the announcement in Guelph, Ford highlighted that the new data center playbook aims to propel the economy forward by fostering billions in economic growth, boosting tax revenues, and generating thousands of job opportunities. The framework mandates that data centers cover their electricity consumption costs entirely, encouraging the implementation of self-power generation projects and introducing a separate rate class for larger data centers to ensure fairness in electricity rates without burdening Ontario families financially.
Ford also confirmed that the province will refrain from providing financial incentives to attract investments. The framework is envisioned to play a pivotal role in supporting Ontario’s artificial intelligence (AI) strategy, anticipated to yield significant economic growth of $122 billion by 2035 and create 17,000 new jobs annually.
The announcement coincides with ongoing discussions in various municipalities across Ontario regarding moratoriums on data centers. Oakville recently voted in favor of a one-year moratorium, while Mississauga is set to decide on its own moratorium in September.
Green Party of Ontario leader Mike Schreiner, in alignment with the Wellington Water Watchers group, called for a pause on data centers, expressing concerns about the allocation of local resources to benefit corporations rather than communities. He emphasized the substantial land, energy, and water requirements of data center infrastructure.
Ford emphasized the necessity of closed-loop systems in data center operations to minimize water consumption. He stressed the importance of educating the public about the critical role data centers play in modern society, citing the need for AI in various sectors.
However, Schreiner criticized the playbook for lacking specific regulations and safeguards, pressing for stringent measures to protect communities from potential negative impacts of data centers. He underscored the importance of community control over the influence of tech corporations in shaping the future landscape of data centers.
Waterloo region is also exploring the local implications of data center expansion, with Coun. Colleen James requesting an information report to educate elected officials on the development and impacts of data centers. The report is anticipated to be finalized early next year to provide insights into the economic and environmental aspects of data center growth in the region.