Ontario Premier Doug Ford unveiled the province’s fresh data center approach on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The new framework focuses on three key elements: promoting economic growth, safeguarding data, and ensuring community investment and public trust.
During the announcement in Guelph, Ford stated that the government’s objective is to stimulate economic development, boost tax revenues, and create numerous job opportunities through the implementation of the new data center playbook. The framework mandates that data centers cover their electricity costs entirely, encouraging self-sufficient power generation and introducing a separate rate category for large data centers, distinct from the existing industrial rate programs.
Ford emphasized that the province will not provide financial incentives to attract investments. The framework is deemed critical to advancing Ontario’s artificial intelligence (AI) strategy, projected to yield substantial economic growth of $122 billion by 2035 and generate 17,000 new jobs annually.
Meanwhile, municipalities across Ontario are contemplating moratoriums on data centers, with Oakville recently enacting a one-year pause and Mississauga set to vote on a similar measure in September.
In response to the new data center framework, the Green Party of Ontario expressed concerns, calling for stronger regulations and a temporary halt on new data center approvals. Green Party leader Mike Schreiner highlighted the issue of corporations benefiting from local resources at the expense of Ontario communities.
The provincial government, led by Minister of Economic Development Vic Fedeli, aims to prioritize data centers utilizing closed-loop systems to minimize water consumption. Ford echoed this sentiment, underlining the government’s commitment to favoring builds with sustainable water usage practices.
Despite acknowledging the significance of data centers in the future, Schreiner emphasized the need for community control and stringent regulations to protect citizens from potential harms associated with data centers. The Ontario Greens plan to persist in advocating for a moratorium until robust safeguards are in place.
Waterloo region is also assessing the local implications of data center expansion, with officials seeking to understand the economic and environmental impacts through an upcoming information report. Coun. Colleen James emphasized the necessity of community safeguards and frameworks in managing the growth of data centers.
The report, expected to be finalized early next year, will provide valuable insights to elected officials on the development and impacts of data centers in the Region of Waterloo.