Ontario Premier Doug Ford unveiled the province’s fresh data center blueprint on Thursday, emphasizing the goal of safeguarding Canadians’ data within the country. The blueprint is anchored on three core principles: fostering economic development, ensuring data security and sovereignty, and promoting community investment and public trust.
During the announcement in Guelph, Ford stated that the government’s new data center strategy, outlined in the playbook, is aimed at fostering future economic growth, boosting tax revenues, creating numerous job opportunities, and enforcing strict operational regulations for data centers.
The framework mandates that data centers fully cover their electricity consumption costs, encouraging them to develop their power generation sources. It establishes a distinct rate category for large new data centers, higher than the existing industrial rates, with no cost burdens on Ontario families.
Ford also emphasized that the province would not provide financial incentives to attract investments, underlining the framework’s role as a fundamental facilitator of the artificial intelligence (AI) strategy. The AI strategy is projected to yield significant economic gains, including $122 billion in economic growth by 2035 and the annual creation of 17,000 new jobs.
This announcement coincides with ongoing deliberations in various Ontario municipalities 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.
Last week, Mike Schreiner, Leader of the Green Party of Ontario, called for a halt on data center developments, expressing concerns about corporations benefiting more from local resources than the communities themselves. Vic Fedeli, Ontario’s minister of economic development, emphasized that data centers utilizing closed-loop systems would receive priority.
A closed-loop system, similar to a car radiator, helps conserve water by reusing it. Ford echoed this sentiment, affirming that only projects aligning with Ontario’s stringent environmental standards on water consumption and noise would advance.
Ford highlighted the importance of educating the public on data centers, noting the essential role these facilities play in supporting businesses, healthcare, and daily digital interactions within communities.
In a related move, Coun. Colleen James tabled a motion earlier this week for the Region of Waterloo council to prepare an information report on the development, economic impact, and environmental implications of data centers. The report is expected to be finalized by early next year.