Ontario Premier Doug Ford unveiled the province’s latest data center framework on Thursday, aiming to safeguard the data of Canadians within the country. The framework is built on three core pillars: economic development, data protection and sovereignty, and community investment along with public trust.
During the announcement in Guelph, Ford highlighted the significance of the new data center playbook, emphasizing its role in fostering the economy of the future. The framework is designed to spur billions in economic growth, boost tax revenues, and generate thousands of job opportunities, all while ensuring that data centers adhere to regulations.
One key aspect of the framework is the requirement for data centers to cover their entire electricity consumption costs. This approach aims to incentivize projects to develop their own power sources and establishes a distinct rate class for large new data centers, which exceeds the existing industrial rate programs for significant electricity users.
Furthermore, Ford stated that the province will not provide financial incentives to attract investments. The framework is expected to play a vital role in supporting the province’s artificial intelligence (AI) strategy, projected to deliver economic benefits totaling $122 billion by 2035 and create 17,000 new jobs annually.
The announcement comes at a time when municipalities across Ontario are deliberating on moratoriums concerning data centers. Oakville recently voted to implement a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
In response to the framework, Green Party of Ontario leader Mike Schreiner called for a pause on data centers, expressing concerns about corporations benefiting from local resources at the expense of communities. The importance of utilizing closed-loop systems in data center operations to reduce water consumption was also emphasized.
Ford defended the need for data centers, highlighting their essential role in modern society. While recognizing the importance of data protection and sovereignty, Schreiner emphasized the need for strong regulations to ensure community well-being amidst the rise of data centers.
Looking ahead, Waterloo region is taking steps to understand the local impacts of data centers. Coun. Colleen James proposed a motion to prepare an information report for the Region of Waterloo council to shed light on the development, economic, and environmental implications of data centers. The report is expected to be finalized early next year to inform decision-making regarding data center expansion in the region.