Ontario Premier Doug Ford unveiled the province’s new data center guidelines on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework for data center approvals is built on three main pillars: fostering economic development, ensuring data protection and sovereignty, and promoting community investment and public trust.
Ford highlighted that the new data center playbook aims to drive future economic growth, boost tax revenues, and create numerous job opportunities while enforcing stringent operational standards. He expressed that under the framework, data centers will be required to fully cover their electricity costs, incentivizing them to develop their own power sources and introducing a higher rate class for large new data centers to prevent additional expenses for Ontario residents.
Moreover, the province clarified that it will not provide financial incentives to attract investments, emphasizing that the framework will play a pivotal role in supporting its artificial intelligence (AI) strategy. The AI strategy is projected to yield substantial economic benefits, including $122 billion in economic growth by 2035 and the annual creation of 17,000 new jobs.
As discussions on data center moratoriums unfold in various municipalities across the province, Oakville recently implemented a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Critics, such as Green Party of Ontario leader Mike Schreiner, have called for a moratorium on new data centers, expressing concerns over local water usage and environmental impacts. Emphasizing the need for stricter regulations, Schreiner and other advocates are urging for measures such as mandating closed-loop water systems in data center operations to reduce water consumption.
In response to criticisms, Ontario’s Minister of Economic Development Vic Fedeli assured that the province would prioritize data centers employing closed-loop systems. Ford echoed this sentiment, pledging to prioritize data center constructions that utilize water-efficient closed-loop systems to minimize water usage during operations.
While Ford defended the necessity of data centers in modern society, Schreiner criticized the lack of detailed regulations in the current framework, demanding stronger protections for communities and the environment against potential data center risks. He stressed the importance of community control over data center developments and called for a moratorium until robust regulations are in place to safeguard the interests of residents.
Looking ahead, Waterloo region officials are examining the local impacts of data center expansions, with plans to gather information on the economic and environmental consequences of such developments. Coun. Colleen James initiated a motion to prepare an information report for the Region of Waterloo council to enhance understanding of data center developments and their implications.
The report, slated for completion early next year, aims to provide valuable insights for elected officials to make informed decisions regarding data center developments in the region.
