Ontario Premier Doug Ford unveiled the province’s fresh data center strategy on Thursday, emphasizing its commitment to keeping Canadian data within the country. The framework for data center approvals is centered on three core principles: economic growth, data security and sovereignty, as well as community investment and public trust.
Ford, speaking in Guelph during the announcement, highlighted that the new data center playbook aims to drive future economic development, leading to substantial growth, increased tax revenues, and the creation of numerous job opportunities while ensuring compliance with regulations.
Under the framework, data centers are required to cover their electricity consumption costs fully, encouraging them to develop their own power sources. Additionally, a distinct rate class will be established for large new data centers, above the existing industrial rate programs for significant electricity consumers, with no additional costs burdening Ontario families.
The province emphasized that it would not provide financial incentives to attract investments, noting that the framework will play a crucial role in supporting its artificial intelligence (AI) strategy. The AI strategy is projected to bring about economic benefits amounting to $122 billion in growth by 2035 and create approximately 17,000 new jobs annually.
This announcement coincides with ongoing discussions in various municipalities across Ontario regarding moratoriums on data centers. Oakville recently voted to implement a one-year moratorium, with Mississauga scheduled to vote on its own moratorium in September.
Furthermore, the Green Party of Ontario, led by Mike Schreiner, has called for a halt on new data centers. Schreiner and Ilham Abdulkadir from Wellington Water Watchers have raised concerns about the environmental impact of data centers and emphasized the need for stringent regulations to protect communities.
Ford stressed the importance of closed-loop systems in data center operations to minimize water consumption, aligning with the government’s priority to support environmentally friendly practices. While acknowledging the significance of data centers in the future, Schreiner highlighted the need for community control over data center developments to prevent undue influence from corporations.
Looking ahead, Waterloo region is actively examining the local impacts of data center expansions. Coun. Colleen James has proposed a motion for preparing an information report to educate elected officials on the development, economic, and environmental implications of data centers. The report is slated for completion in early 2023.
