Ontario Premier Doug Ford revealed the province’s fresh data center strategy on Thursday, emphasizing the importance of keeping Canadian data within the country. The strategy focuses on three main aspects: economic development, data protection and sovereignty, and community investment and public trust.
Ford highlighted that the government’s approach aims to foster the economy’s growth, boost tax revenues, and create numerous job opportunities. The new framework mandates data centers to cover their electricity expenses fully, encouraging them to develop their power generation capabilities. Additionally, large new data centers will be subject to a higher rate class than existing industrial programs, ensuring that costs do not burden Ontario families.
In a bid to support its artificial intelligence (AI) strategy, the province stated that the framework will play a pivotal role. The AI strategy is projected to bring about significant economic growth of $122 billion by 2035 and create 17,000 new jobs annually.
Meanwhile, as municipalities in Ontario deliberate on data center moratoriums, Oakville recently voted to enforce a one-year pause, with Mississauga set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner and the group Wellington Water Watchers have voiced concerns about the environmental impacts of data centers. They advocate for a closed-loop water system to reduce water consumption. Schreiner emphasized the need for stringent regulations to protect communities from the adverse effects of data centers.
The province’s economic development minister, Vic Fedeli, assured that data centers employing closed-loop systems will be given priority. Premier Ford emphasized the significance of data centers in modern society and the need for communities to have control over their development.
Despite acknowledging the importance of data centers, Schreiner and the Ontario Greens continue to push for a moratorium until robust regulations safeguarding communities are in place.
Looking ahead, Waterloo region is examining the local impacts of data centers, with efforts underway to prepare an information report to inform elected officials about the economic and environmental implications of data centers. Coun. Colleen James highlighted the necessity of understanding the development and impacts of data centers, emphasizing the importance of community safeguards and frameworks.
The report is anticipated to be finalized early next year, providing valuable insights for decision-makers in the region.
