Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework is built on three core pillars: economic development, data protection, sovereignty, community investment, and public confidence.
Ford, speaking in Guelph during the announcement, highlighted that the new data center playbook aims to bolster the economy, boost tax revenues, create numerous job opportunities, and ensure compliance with regulations. The framework mandates that data centers cover the full cost of their electricity consumption, incentivizing projects to develop their power generation sources. It also establishes a separate, elevated rate class for large new data centers, distinct from existing industrial rate programs, to avoid burdening Ontario families with additional costs.
Furthermore, Ford clarified that the province will not provide financial incentives to attract investments. The framework is positioned as a crucial facilitator for the province’s artificial intelligence (AI) strategy, projecting significant economic growth of $122 billion by 2035 and the annual creation of 17,000 new jobs. This initiative comes amidst ongoing discussions in municipalities across the province regarding potential moratoriums on data centers, with Oakville recently voting for a one-year pause and Mississauga set to deliberate on a similar measure in September.
In response to the framework, Green Party of Ontario leader Mike Schreiner and Ilham Abdulkadir from Wellington Water Watchers have expressed concerns about the environmental impact of data centers, particularly their substantial water consumption. Vic Fedeli, Ontario’s minister of economic development, emphasized prioritizing data centers utilizing closed-loop systems that significantly reduce water usage, akin to a car radiator’s water recycling mechanism.
While acknowledging the importance of data centers in the future, Schreiner criticized the framework, asserting that it lacks specific regulations to safeguard communities and the environment. He emphasized the need for strong protections before approving new data centers in Ontario. The Ontario Greens advocate for a moratorium until stringent regulations are in place to ensure people and communities are adequately protected from the potential negative impacts of data centers.
Looking ahead, Coun. Colleen James in the Waterloo region tabled a motion for a comprehensive information report on the development, economic, and environmental implications of data centers. The report aims to provide valuable insights to elected officials on the expansion of data centers in the region and is expected to be finalized early next year.