Ontario Premier Doug Ford unveiled the province’s fresh approach to data center regulation on Thursday, emphasizing the importance of keeping Canadians’ data within Canada. The new framework assesses data center approvals based on three core principles: promoting economic growth, safeguarding data, ensuring sovereignty, investing in communities, and fostering public trust.
During the announcement in Guelph, Ford highlighted the significance of the new data center playbook in shaping the future economy. The initiative aims to spur economic growth, boost tax revenues, create job opportunities, and enforce stringent operational rules for data centers. Notably, the framework mandates that data centers cover the full cost of their electricity consumption, incentivizing projects to develop their power generation sources. Moreover, large new data centers will fall under a distinct rate class with higher rates than existing industrial programs to prevent passing costs to Ontario residents.
In a bid to bolster the province’s artificial intelligence (AI) strategy, the government stated that the framework would be a critical enabler, projecting substantial economic growth of $122 billion by 2035 and an annual creation of 17,000 new jobs.
Meanwhile, some municipalities in Ontario are deliberating on imposing moratoriums on data centers. For instance, Oakville recently voted to enact a one-year moratorium, and Mississauga is set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner recently called for a pause on new data center approvals, expressing concerns about the environmental impact and corporate benefit derived from local resources. The Green Party, along with community advocates, is advocating for stronger regulations to ensure sustainable development practices, such as the use of closed-loop water systems to minimize water consumption. Despite acknowledging the importance of data centers in the future, Schreiner emphasized the need for community control and robust regulations to safeguard residents from potential adverse effects.
In a separate development, Waterloo region officials are assessing the local implications of data center expansion. Coun. Colleen James tabled a motion for the Region of Waterloo council to prepare an information report detailing the economic and environmental impacts of data centers. The report aims to provide insights into the development and sustainability aspects of data centers, with completion expected in early next year.
