Ontario Premier Doug Ford unveiled the province’s fresh data center strategy, emphasizing the importance of keeping Canadian data within the country. Ford introduced a framework centered on three key pillars: economic growth, data security and sovereignty, and community investment alongside public trust.
Speaking in Guelph, Ford highlighted the potential economic benefits of the playbook, projecting substantial growth, increased tax revenues, and the creation of numerous job opportunities. The framework mandates that data centers cover their electricity consumption costs, incentivizing projects to develop their power sources and enforcing a higher rate class for large new data centers to prevent additional burdens on Ontario families.
Ford clarified that Ontario will not provide financial incentives to attract investments. The province envisions its framework as a crucial driver of its artificial intelligence (AI) strategy, anticipating significant economic growth and the generation of thousands of jobs annually by 2035.
Meanwhile, amidst ongoing deliberations in various municipalities regarding data center moratoriums, Oakville recently voted for a one-year pause, with Mississauga set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner, alongside Ilham Abdulkadir from Wellington Water Watchers, raised concerns about the environmental impacts and resource consumption of data centers. They called for stricter regulations, emphasizing the need for closed-loop water systems to reduce water usage.
Ford pledged to prioritize data centers with closed-loop systems and emphasized the importance of understanding the role of data centers in modern society. However, Schreiner expressed disappointment in the playbook, calling for stronger regulations and a moratorium until adequate protections are in place.
Looking ahead, Coun. Colleen James tabled a motion in the Region of Waterloo council to prepare a report on data centers’ development, economic effects, and environmental implications. The report aims to educate elected officials and the community about the evolving landscape of data centers, with completion expected early next year.
