Ontario Premier Doug Ford unveiled the province’s new data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within Canada. The framework is built on three key pillars: economic development, data protection and sovereignty, and community investment and public confidence.
During the announcement in Guelph, Ford highlighted that the new data center playbook aims to boost the future economy, leading to significant economic growth, increased tax revenues, and the creation of numerous job opportunities while ensuring compliance with regulations.
Under the framework, data centers are required to fully cover their electricity consumption costs, promoting the development of power generation projects within their facilities. Additionally, a separate rate class will be established for large new data centers, ensuring that the costs do not burden Ontario families.
Ford emphasized that the province will not offer financial incentives to attract investments. The framework is expected to play a crucial role in supporting Ontario’s artificial intelligence (AI) strategy, projecting substantial economic growth and the generation of thousands of new jobs annually by 2035.
The announcement comes amidst discussions in various municipalities in the province regarding moratoriums on data centers. Oakville recently implemented a one-year moratorium, while Mississauga is set to vote on its own moratorium in September.
Green Party of Ontario leader Mike Schreiner recently called for a pause on data centers, expressing concerns about the environmental impact and the benefit distribution from these facilities. The push for more sustainable practices in data center construction has gained support from various community groups and residents.
Ontario’s Minister of Economic Development Vic Fedeli highlighted the province’s commitment to prioritizing data centers that utilize closed-loop systems to minimize water consumption. This practice aligns with the government’s focus on sustainable and environmentally friendly infrastructure development.
While acknowledging the importance of data centers in the future, Schreiner emphasized the need for strong regulations to protect communities and ensure their involvement in decision-making processes. The Ontario Greens will continue advocating for a moratorium until robust safeguards are in place to address concerns related to data centers.