Ontario Premier Doug Ford unveiled the province’s fresh data center strategy on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The strategy evaluates data center approvals based on three key aspects: economic development, data security and sovereignty, and community investment along with public trust.
Ford, speaking in Guelph during the announcement, highlighted the aim of the new playbook to foster the future economy, generating substantial economic growth, boosting tax revenues, and creating numerous job opportunities while ensuring data centers adhere to regulations.
The framework mandates that data centers cover the entirety of their electricity consumption costs, encouraging self-sufficient power generation projects and establishing a distinct rate structure for large new data centers, which surpasses the prevailing industrial rate programs for significant electricity consumers.
The province, under this framework, refrains from offering financial incentives to attract investments. It sees this framework as a pivotal facilitator of its artificial intelligence (AI) strategy, projected to yield economic benefits amounting to $122 billion in growth by 2035 and the creation of 17,000 new jobs annually.
Amidst discussions in various municipalities in the province on potential moratoriums on data centers, Oakville recently implemented 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 new data center approvals, expressing concerns over the disproportionate benefits reaped by corporations at the expense of local communities. Notably, the push for data centers involves significant land usage, energy consumption, and water demand, as emphasized by Ilham Abdulkadir from Wellington Water Watchers.
In response to such concerns, Ontario’s Economic Development Minister Vic Fedeli underscored the province’s commitment to prioritize data centers employing closed-loop systems, which recycle water to minimize consumption.
While Premier Ford stressed the importance of data centers for various societal functions, Schreiner criticized the new playbook for lacking specific regulations ensuring sustainable water usage. The Greens advocate for a moratorium until stringent regulations are in place to safeguard communities from potential negative impacts of data centers.
Looking ahead, Waterloo region is evaluating the local impacts of data centers, with efforts underway to inform elected officials about the development, economic implications, and environmental effects of data centers. Coun. Colleen James led a motion to prepare an information report for the Region of Waterloo council to deepen understanding on data center expansion and its implications. The report is anticipated to be finalized early next year.