Ontario Premier Doug Ford unveiled the province’s latest data centre framework on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework is centered around three key pillars: economic development, data protection and sovereignty, and community investment and public confidence.
In a statement made in Guelph, Ford highlighted the significance of the new data centre playbook in fostering the economy of the future. The playbook aims to drive billions in economic growth, boost tax revenues, and generate numerous job opportunities while ensuring data centres adhere to regulations.
One key aspect of the framework is that data centres will be required to cover the full cost of their electricity consumption, with incentives for projects to develop their own power generation. Additionally, a separate rate class will be established for large new data centres, ensuring that costs are not shifted onto Ontario families.
Ford reiterated the province’s stance on not providing financial incentives to attract investments. The framework is expected to play a crucial role in supporting Ontario’s artificial intelligence (AI) strategy, projected to bring about $122 billion in economic growth by 2035 and create 17,000 new jobs annually.
The announcement comes amidst discussions in various municipalities across the province regarding moratoriums on data centres, with Oakville recently enacting a one-year moratorium and Mississauga set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner recently called for a pause on new data centres, expressing concerns about the impact on local water resources and communities. The group Wellington Water Watchers echoed these concerns, emphasizing the physical infrastructure demands of data centres, including land, energy, and water usage.
In response to these concerns, Ontario’s Minister of Economic Development, Vic Fedeli, emphasized the province’s commitment to prioritizing data centres that implement closed-loop systems to minimize water consumption. This approach, similar to a car radiator system, aims to recycle water to reduce overall usage.
Despite the government’s efforts, Schreiner criticized the playbook for lacking specific regulatory measures, calling for stronger protections before approving new data centres. He emphasized the importance of community control over these developments and advocated for a moratorium until stringent regulations are in place.
Looking ahead, the Region of Waterloo is taking steps to understand the local impacts of data centre expansions. Coun. Colleen James initiated a motion to prepare an information report for the council, aiming to shed light on the economic and environmental implications of data centres in the region. The report is expected to be finalized early next year to inform decision-making processes.