Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing its commitment to safeguarding Canadians’ data within Canadian borders. The framework evaluates data center approvals based on three core principles: economic development, data security and sovereignty, and community investment coupled with public trust.
Ford, speaking in Guelph during the announcement, highlighted the significance of the new data center playbook in fostering future economic growth, enhancing tax revenues, and spurring the creation of numerous job opportunities. The framework mandates that data centers cover the full cost of their electricity consumption, incentivizing projects to develop their own power sources and establishing a distinct rate category for large new data centers, ensuring they pay higher rates compared to existing industrial programs for major electricity consumers, without burdening Ontario families with additional costs.
In a bid to bolster the province’s artificial intelligence (AI) strategy, which is forecasted to yield substantial economic gains, including a projected $122 billion in economic growth by 2035 and the annual creation of 17,000 new jobs, Ford affirmed that the province will refrain from offering financial incentives to attract investments.
The deployment of the framework coincides with deliberations by municipalities across Ontario on imposing moratoriums on data centers. Oakville recently voted to implement a one-year moratorium, while Mississauga is slated to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner recently called for a halt on data center developments, citing concerns that corporations benefit from local resources at the expense of Ontario communities. Joining Schreiner, Ilham Abdulkadir from the Wellington Water Watchers group underscored the significant physical footprint of data centers, which demand land, energy, and substantial water resources.
In response to these concerns, Ontario’s Minister of Economic Development, Vic Fedeli, emphasized the province’s commitment to prioritizing data centers employing closed-loop systems that minimize water consumption. Ford echoed this sentiment, emphasizing the government’s focus on supporting builds with closed-loop systems that have minimal water usage.
Despite these assurances, Schreiner criticized the playbook for lacking specific regulations to protect the environment and communities. He stressed the need for robust safeguards before approving new data centers, advocating for greater community control over these developments.
Meanwhile, Waterloo region officials are examining the local impacts of data center expansions. Coun. Colleen James tabled a motion for the Region of Waterloo council to produce an information report detailing the development, economic implications, and environmental effects of data centers. This initiative aims to equip elected officials with comprehensive insights into the evolving data center landscape. The report is slated for completion in early 2023.
