Ontario Premier Doug Ford unveiled the province’s updated data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within Canada. The framework is centered on three key pillars: economic growth, data protection and sovereignty, and community investment and public trust.
During the announcement in Guelph, Ford highlighted that the government’s new playbook aims to stimulate the economy, generate substantial economic growth, boost tax revenues, and create numerous job opportunities. The framework mandates that data centers cover the full cost of their electricity consumption, encouraging the development of self-sufficient power generation. Additionally, a distinct rate class will be established for large new data centers, ensuring they pay higher rates compared to existing industrial rate programs, with no additional costs passed on to Ontario families.
Ford also stressed that the province will not provide financial incentives to attract investments. The framework is expected to play a pivotal role in advancing Ontario’s artificial intelligence (AI) strategy, foreseeing significant economic benefits such as $122 billion in economic growth by 2035 and the annual creation of 17,000 new jobs.
The announcement coincides with ongoing deliberations in various municipalities across the province regarding moratoriums on data centers. Oakville recently voted to implement a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner recently called for a halt on data center approvals, expressing concerns over corporations benefiting from local resources at the expense of Ontario communities. The group Wellington Water Watchers echoed these concerns, emphasizing the significant land, energy, and water requirements of data center infrastructure. In Toronto, over 5,000 residents have signed petitions expressing apprehensions about data centers in their neighborhoods.
Ontario’s Minister of Economic Development, Vic Fedeli, assured that data centers utilizing closed-loop systems will be given priority. Such systems, akin to car radiators, recycle water to minimize consumption. Ford echoed this sentiment, emphasizing the government’s focus on prioritizing builds with closed-loop systems that have minimal water usage.
While acknowledging the importance of data protection and sovereignty, Schreiner criticized the playbook for lacking specific details and robust regulations. He emphasized the need for stringent measures, including mandating closed-loop water systems for all data centers in Ontario before approving new facilities. The Ontario Greens advocate for a moratorium until such protective regulations are in place, ensuring people and communities are safeguarded from potential data center impacts.
Looking ahead, Coun. Colleen James in the Waterloo region proposed a motion to gather information on data centers’ development, economic implications, and environmental impacts. The region aims to enhance understanding of data centers to address the growing demands associated with their expansion. The report is anticipated to be finalized in early 2023.
