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 main pillars: economic development, data protection and sovereignty, and community investment and public confidence.
Ford stated that the government’s objective, through the new data center playbook, is to foster economic growth, boost tax revenues, create job opportunities, and ensure compliance with regulations. The framework aims to hold data centers accountable for their electricity usage costs, encouraging self-sustainable power generation projects and introducing a distinct rate class for large new data centers to avoid burdening Ontario families with additional costs.
Ford clarified that the province will not provide financial incentives to attract investments. The framework is positioned as a vital component of Ontario’s artificial intelligence (AI) strategy, projected to generate $122 billion in economic growth by 2035 and create 17,000 new job positions annually. The announcement coincides with municipal discussions across Ontario regarding moratoriums on data centers, with Oakville recently enacting a one-year moratorium and Mississauga set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner recently called for a halt on new data centers, concerned about the exploitation of local resources by corporations rather than benefiting Ontario communities. Schreiner’s concerns were echoed by Ilham Abdulkadir of Wellington Water Watchers, who highlighted the significant land, energy, and water requirements of data centers.
In response to these concerns, Ontario’s Minister of Economic Development, Vic Fedeli, emphasized the province’s commitment to prioritize data centers implementing closed-loop systems to minimize water consumption. The closed-loop system, akin to a car radiator, recycles water to reduce usage during operations.
While Premier Ford emphasized the importance of data centers for advancing technology, Schreiner criticized the playbook for lacking specific regulations and protections. He stressed the need for stringent regulations to safeguard communities from potential adverse impacts of data centers, advocating for a moratorium until such regulations are in place.
Waterloo region is also evaluating the impacts of data centers, with Coun. Colleen James initiating an information report for the Region of Waterloo council to assess the development, economic, and environmental implications of data centers. The report is anticipated to be finalized in early 2023.