Ontario Premier Doug Ford unveiled the province’s latest data center framework, emphasizing the importance of keeping Canadians’ data within the country. The framework is built on three core pillars: economic development, data protection and sovereignty, and community investment and public trust.
During the announcement in Guelph, Ford highlighted that the new data center playbook aims to drive economic growth, increase tax revenues, and create numerous job opportunities while ensuring compliance with regulations. The framework mandates that data centers cover their electricity usage costs fully, encouraging them to develop their power generation sources. It also establishes a higher rate class for large new data centers to prevent costs from being transferred to Ontario families.
Ford emphasized that the province will not provide financial incentives to attract investments. The framework is expected to play a crucial role in supporting Ontario’s artificial intelligence (AI) strategy, projecting significant economic growth and the generation of thousands of new jobs annually.
Meanwhile, concerns have been raised by some municipalities in the province regarding the influx of data centers. Oakville recently imposed a one-year moratorium, with Mississauga set to vote on a similar measure in September.
The Green Party of Ontario, led by Mike Schreiner, has called for a halt on new data centers due to concerns about water usage and community benefits. Schreiner stressed the need for strong regulations to ensure sustainable practices, including the use of closed-loop water systems.
Ontario’s Minister of Economic Development, Vic Fedeli, pledged to prioritize data centers that implement closed-loop systems, which recycle water to minimize consumption. Despite the efforts, Schreiner believes that the current playbook lacks specifics and strong regulations to safeguard communities from potential negative impacts of data centers.
He emphasized the importance of balancing data protection and sovereignty with community control over data center developments. The Green Party intends to advocate for a moratorium until robust regulations are in place to protect residents and communities.
In response to these concerns, Coun. Colleen James of the Region of Waterloo council proposed a motion to gather information on the development, economic, and environmental impacts of data centers. The report is expected to be completed early next year, aiming to provide insights for elected officials on the implications of data center expansions.