Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing its aim to uphold the storage of Canadians’ data within Canada. The framework revolves around three main pillars: economic development, data protection and sovereignty, and community investment along with public trust.
Ford, speaking at the announcement in Guelph, highlighted the significance of the new data center playbook in fostering the future economy, stimulating billions in economic growth, boosting tax revenues, and generating numerous job opportunities. The framework mandates data centers to fully cover their electricity usage costs, encouraging them to develop their own power generation infrastructure. It also establishes a new rate class for large data centers, ensuring they pay higher rates compared to existing industrial rate programs, without burdening Ontario families with additional costs.
In alignment with the framework, the province will refrain from providing financial incentives to attract investments. The framework is positioned as a crucial component of the government’s artificial intelligence (AI) strategy, projected to yield substantial economic growth of $122 billion by 2035 and create 17,000 new jobs annually.
The announcement coincides with ongoing discussions in various municipalities across the province regarding moratoriums on data centers. Oakville recently approved a one-year moratorium, with Mississauga set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner, along with Ilham Abdulkadir from Wellington Water Watchers, has emphasized the environmental impact of data centers, particularly their extensive water consumption. They advocate for stringent regulations, such as implementing closed-loop systems to minimize water usage.
Ford has echoed the importance of closed-loop systems in data center operations, emphasizing the government’s commitment to prioritize such sustainable practices. Despite Ford’s assertions, Schreiner remains critical of the framework, citing the need for stronger regulations to protect communities from potential adverse effects of data centers.
Looking ahead, the Region of Waterloo is undertaking an information report initiative to delve into the economic and environmental implications of data center expansion. The report, expected to be finalized in early 2023, aims to equip elected officials with comprehensive insights into data center development and its broader impacts on the region.
