Ontario Premier Doug Ford unveiled a new data center framework for the province, emphasizing the importance of keeping Canadians’ data within Canada. The framework is built on three key pillars: economic development, data protection and sovereignty, and community investment and public confidence.
Ford, speaking in Guelph, highlighted the significance of the framework in shaping the economy of the future. He emphasized that the playbook aims to drive billions in economic growth, boost tax revenues, and generate numerous job opportunities, all while ensuring data centers comply with regulations.
Under the new framework, data centers will be required to cover the full cost of their electricity usage, promoting the development of their own power generation sources. Moreover, a separate rate class will be established for large new data centers, ensuring they pay higher rates than existing industrial users, with no additional costs passed on to Ontario families.
The province stated that the framework will play a vital role in supporting its artificial intelligence (AI) strategy, projected to deliver substantial economic growth amounting to $122 billion by 2035 and create 17,000 new jobs annually.
In response to concerns raised by municipalities regarding data center operations, Oakville recently enforced a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner called for a pause on data center development, citing concerns over corporate benefits at the expense of local communities. He stressed the significant environmental impact of data centers, particularly their high water consumption.
Ontario’s Economic Development Minister Vic Fedeli assured that data centers utilizing closed-loop systems would be prioritized. Such systems, akin to car radiators, recycle water to minimize consumption.
While Ford defended the importance of data centers for future development, Schreiner criticized the new playbook, demanding stronger regulations to protect communities from potential negative impacts. The Ontario Greens continue to advocate for a moratorium until stringent safeguards are in place.
Waterloo region officials are also exploring the local implications of data center expansion. Coun. Colleen James proposed a motion to prepare an information report for the Region of Waterloo council to better understand the economic and environmental impacts of data centers. The report is expected to be finalized by early next year.
