Ontario Premier Doug Ford unveiled the province’s fresh data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within the country. The framework is structured around three core pillars: economic development, data protection and sovereignty, and community investment alongside public confidence.

Speaking at the announcement in Guelph, Ford highlighted that the new playbook aims to bolster the economy by fostering substantial economic growth, increasing tax revenues, and generating thousands of job opportunities. The framework mandates that data centers bear the full cost of their electricity consumption, encouraging self-sufficiency in power generation and implementing a distinct rate class for large new data centers to ensure fairness without burdening Ontario households.

Ford made it clear that the province will not offer financial incentives to attract investments. The government stated that the framework will play a crucial role in supporting its artificial intelligence (AI) strategy, projecting significant economic growth of $122 billion by 2035 and the creation of 17,000 new jobs annually.

This announcement comes at a time when various municipalities across the province are contemplating moratoriums on data centers. For instance, Oakville recently enforced a one-year moratorium, while Mississauga is set to vote on a similar measure in September.

Green Party of Ontario leader Mike Schreiner recently called for a pause on data centers, expressing concerns about corporations benefiting from local resources at the expense of Ontario communities. Environmental advocates, such as Ilham Abdulkadir from Wellington Water Watchers, raised concerns about the environmental impact of data centers, emphasizing their substantial water and energy requirements.

In response to these concerns, Ontario’s Minister of Economic Development, Vic Fedeli, emphasized prioritizing data centers that utilize closed-loop systems, which recycle water to reduce consumption. Ford echoed this sentiment, emphasizing the importance of prioritizing builds with closed-loop systems that minimize water usage during operations.

While acknowledging the significance of data protection and the role of data centers in the future, Schreiner underscored the need for stronger regulations to ensure community well-being. He stressed the importance of empowering communities and individuals rather than allowing tech giants and corporations to dominate the sector.

Looking ahead, Waterloo region officials are examining the local impacts of data centers, with Coun. Colleen James initiating a motion to gather information on the development, economic, and environmental implications of data centers in the region. The report is expected to be completed by early next year, aiming to provide essential insights to elected officials on the ongoing expansion of data centers in the region.