Ontario Premier Doug Ford unveiled the province’s new strategy for data centers on Thursday, emphasizing the importance of keeping Canadians’ data within Canada. The framework for data center approvals is built on three main principles: economic development, data protection and sovereignty, and community investment and public confidence.
Ford highlighted that the government’s focus is on fostering the economy of the future, which will lead to significant economic growth, increased tax revenues, and the creation of numerous jobs. The framework mandates that data centers cover the full cost of their electricity usage, incentivizing projects to develop their own power generation. Additionally, a separate rate class will be established for large new data centers, ensuring that costs are not shifted to Ontario families.
The province clarified that it will not provide financial incentives to attract investments. This new framework is positioned as a critical enabler for its artificial intelligence (AI) strategy, which is anticipated to drive substantial economic growth and the generation of thousands of new jobs annually.
In response to growing concerns about data centers, several municipalities in Ontario are considering moratoriums. Oakville recently implemented a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Green Party Leader Mike Schreiner and Ilham Abdulkadir from Wellington Water Watchers have raised concerns about the environmental impact of data centers, particularly their water consumption. They advocate for a closed-loop system, similar to a car radiator, which minimizes water usage. The government has pledged to prioritize data centers that utilize closed-loop systems to reduce water consumption.
Despite the new playbook for data centers, Schreiner believes it falls short in providing specific regulations to protect communities. He emphasized the importance of ensuring that people and communities have control over data center developments rather than large corporations. The Ontario Greens continue to call for a moratorium until stronger regulations are in place.
In the Waterloo region, efforts are underway to address the local impacts of data centers. Coun. Colleen James proposed a motion to gather information about the development, economic, and environmental impacts of data centers. The region is preparing a report to inform elected officials about the implications of data center expansion, with completion expected early next year.